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138.4605 Taxes on loaner or rental motor vehicles.
(1) A motor vehicle dealer who operates a service or repair component in his dealership
may register a motor vehicle to be used exclusively as a loaner or rental motor <br>vehicle to the customers of this service or repair department. The dealer may pay <br>usage tax on the loaner or rental motor vehicle as provided in KRS 138.460, or, <br>subject to the provisions of this section, may pay a usage tax of twenty-five dollars <br>($25) per month on the loaner or rental motor vehicle.
(2) A dealer shall pay the usage tax on a loaner or rental motor vehicle in the manner
provided by KRS 138.460 unless the dealer shows to the satisfaction of the <br>Department of Revenue that he is regularly engaged in the servicing or repair of <br>motor vehicles and loans or rents the loaner or rental motor vehicle to a retail <br>customer while the customer's motor vehicle is at the dealership for repair or <br>service.
(3) For a dealer to be eligible to pay the usage tax on a loaner or rental motor vehicle
under this section, the dealer shall identify the motor vehicle as a loaner or rental <br>motor vehicle to the Department of Revenue and shall maintain records, as required <br>by the Department of Revenue, which show all uses of the loaner or rental motor <br>vehicle.
(4) The tax due under subsection (1) of this section shall be remitted to the Department
of Revenue monthly on forms prescribed by and in accordance with administrative <br>regulations promulgated by the department.
(5) Failure of a motor vehicle dealer to remit the taxes applicable to a loaner or rental
motor vehicle under this section shall be sufficient cause for the Department of <br>Revenue to revoke the authority to use that motor vehicle as a loaner or rental motor <br>vehicle and cause the usage tax on that motor vehicle to be due and payable in <br>accordance with KRS 138.460 on the retail price of that motor vehicle when it was <br>first registered as a loaner or rental motor vehicle.
(6) A motor vehicle no longer covered under the loaner permit program shall be taxed
in the same manner as motor vehicles under KRS 138.450(12) or (16).
Effective: July 12, 2006 <br>History: Amended 2006 Ky. Acts ch. 252, Pt. XXXV, sec. 3, effective January 1, 2007;
and ch. 251, sec. 5, effective July 12, 2006. -- Amended 2005 Ky. Acts ch. 85, <br>sec. 387, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 26, sec. 2, effective <br>July 15, 2002. -- Created 1998 Ky. Acts ch. 166, sec. 1, effective July 15, 1998.
Legislative Research Commission Note (1/1/2007). This section was amended by 2006
Ky. Acts chs. 251, sec. 5, and 252, Pt. XXXV, sec. 3, which are identical and have <br>been codified together.
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