Q: What is advalorem tax?
A: The Motor Vehicle Property Tax is a constitutional advalorem tax levied on personal property.
Q: Who is responsible for assessing the value of my vehicle?
A: The Property Valuation Administrator (P.V.A.) of the county in which the vehicle is located is responsible for the assessment of the value. You can contact Owenton P.V.A. office at (502)-484-5172.
Q: How is the value of my car determined?
A: The standard value of motor vehicles is the average trade-in value established by industry standard guides, provided to Property Valuation Administrators by the Kentucky Revenue Cabinet.
Q: What if my vehicle is not "average" and therefore the value assessed is not correct?
A: To adjust the value you will need to contact your local Property Valuation Administrator. Some reasons the value may need to be adjusted are:
- Excessive mileage
- Damage
- Identification
Q: If I sell my vehicle in February do I only owe the taxes for January and February?
A: Since the value is assessed as of January 1st the owner at the time is responsible for that entire tax year.
Q: When are advalorem taxes due?
A: Most advalorem taxes are due by the last day of your birth month. Title only vehicles are due in July and Historical vehicles are due in December.
Q: Do I owe advalorem tax on my boat?
A: Yes, boat taxes are all due by April 30th.
Q: Who sets tax rates for the districts?
A: The taxing districts set the rates based on limits that are stated in the statutes. The P.V.A. is not responsible for setting property tax rates.
Q: Who collects my advalorem taxes?
A: The County Clerk in your county has the responsibility of collecting advalorem taxes on motor vehicles and boats, and maintaining current addresses.
Q: How do I benefit from the advalorem tax?
A: Approximately 65% of advalorem property tax on motor vehicles is returned to:
- The local community
- Funding your local government
- Your public schools
- Your health services
- Your local libraries
- The remainder goes to the Kentucky General Fund.
Q: What taxes will be owed if I'm moving into Kentucky?
A: 6% usage tax is due upon initial registration into Kentucky. You will be given a tax credit for what you paid in the other state on sales/usage/use tax, if your vehicle was properly registered to you in the previous state.
Q: Can I add my spouse/parent/child's name to my vehicle registration/title without paying tax?
A: If the vehicle is registerd properly to you in Kentucky you may add your spouse/parent or child and the transaction will be exempt.
Q: If I already paid the usage tax on a vehicle that I wanted to add my friends name to would I have to pay the usage tax again?
A: Yes. If a non-relatives name is added half the tax would be due. The ownership would go from one owner to two owners.
Q: If I buy a new car how would the motor vehicle usage tax be figured.
A: The tax can be based on 90% of the MSRP which includes all options and destination fees, or it can be based on the Affidavit of Total Consideration. The rate is 6%. If you buy a used vehicle, the tax can be based on the value from a prescribed price reference manual or it can be based on the value shown on the Affidavit of Total Consideration. The Affidavit can be obtained from any County Clerks office, car dealership, or print it directly from this website.
Q: Will I be given trade-in credit if I want to trade a boat and or trailer or ATV or farm equipment for a motor vehicle?
A: No. Only vehicles which have been plated for use on the highway pay usage tax so only those vehicles qualify for trade credit. The only tax collected on trailers, boats, farm equipment, ATVs etc. would be Sales/Use tax.
Q: Where can I get further information about vehicle taxes?
A: You can contact the Kentucky Transportaion Cabinet Registration at (502)-564-5301. For usage tax information you can contact the Kentucky Revenue Cabinet at (502)-564-4455.
Q: If I'm leasing a vehicle how do I pay my usage tax?
A: Kentucky provides two methods for paying taxes on leased vehicles. They can be paid in full when the vehicle is registered at the County Clerk, or the owner can contact the Kentucky Transportation Cabinet, U-Drive-It Section, at (502)-564-5301 to make arrangements to obtain a permit which will allow payments to be made on a monthly basis.
Q: Can I get a refund of the Motor Vehicle Usage Tax if I bought a vehicle but returned it to the dealer within 60 days or to the manufacturer within 90 days?
A: In most cases yes, but the returned vehicle cannot be "replaced" with another one and tax paid on only the difference in the value. The process must start with the Kentucky Transportation Cabinet at (502)-564-5301. The title and registration will be cancelled, and Transportation will notify the County Clerk and the Revenue Caninet. The Revenue Cabinet will then determine if circumstances call for a refund. If the refund is authorized, the County Clerk will contact the taxpayer and issue the refund from the County Clerk office.
Q: I just bought my vehicle and a week later I wrecked it. Can I get a refund of the usage tax that I paid?
A: No. The usage tax is a tax for the right or privilege of using the highways, and is not based on actual use of the highways.
Q: Do I pay Motor Vehicle Usage Tax every year?
A: No, Motor Vehicle Usage Tax is a one-time only tax as long as you own the vehicle. If ownership is transferred to a different person, tax is due unless there is an applicable exemption under KRS138.470.
Q: Are dealers exempt from Motor Vehicle Usage Tax?
A: No, if the vehicle is new, dealers are not exempt. If the vehicle is used then the dealer can claim a dealership exemption for the vehicles which is being held on the lot for resale or being driven for demonstration purposes by the customer.