138.470 Exemptions from tax.
There is expressly exempted from the tax imposed by KRS 138.460: <br>(1) Motor vehicles titled or registered to the United States, or to the Commonwealth of
Kentucky or any of its political subdivisions;
(2) Motor vehicles titled or registered to institutions of purely public charity and
institutions of education not used or employed for gain by any person or <br>corporation;
(3) Motor vehicles which have been previously titled in Kentucky on or after July 1,
2005, or previously registered and titled in any state or by the federal government <br>when being sold or transferred to licensed motor vehicle dealers for resale. The <br>motor vehicles shall not be leased, rented, or loaned to any person and shall be held <br>for resale only;
(4) Motor vehicles sold by or transferred from dealers registered and licensed in
compliance with the provisions of KRS 186.070 and KRS 190.010 to 190.080 to <br>nonresident members of the Armed Forces on duty in this Commonwealth under <br>orders from the United States government;
(5) Commercial motor vehicles, excluding passenger vehicles having a seating capacity
for nine (9) persons or less, owned by nonresident owners and used primarily in <br>interstate commerce and based in a state other than Kentucky which are required to <br>be registered in Kentucky by reason of operational requirements or fleet proration <br>agreements and are registered pursuant to KRS 186.145;
(6) Motor vehicles titled in Kentucky on or after July 1, 2005, or previously registered
in Kentucky, transferred between husband and wife, parent and child, stepparent <br>and stepchild, or grandparent and grandchild;
(7) Motor vehicles transferred when a business changes its name and no other
transaction has taken place or an individual changes his or her name;
(8) Motor vehicles transferred to a corporation from a proprietorship or limited liability
company, to a limited liability company from a corporation or proprietorship, or <br>from a corporation or limited liability company to a proprietorship, within six (6) <br>months from the time that the business is incorporated, organized, or dissolved;
(9) Motor vehicles transferred by will, court order, or under the statutes covering
descent and distribution of property, if the vehicles were titled in Kentucky on or <br>after July 1, 2005, or previously registered in Kentucky;
(10) Motor vehicles transferred between a subsidiary corporation and its parent
corporation if there is no consideration, or nominal consideration, or in sole <br>consideration of the cancellation or surrender of stock;
(11) Motor vehicles transferred between a limited liability company and any of its
members, if there is no consideration, or nominal consideration, or in sole <br>consideration of the cancellation or surrender of stock;
(12) The interest of a partner in a motor vehicle when other interests are transferred to
him;
(13) Motor vehicles repossessed by a secured party who has a security interest in effect
at the time of repossession and a repossession affidavit as required by KRS <br>186.045(6). The repossessor shall hold the vehicle for resale only and not for <br>personal use, unless he has previously paid the motor vehicle usage tax on the <br>vehicle;
(14) Motor vehicles transferred to an insurance company to settle a claim. These vehicles
shall be junked or held for resale only;
(15) Motor carriers operating under a charter bus certificate issued by the Transportation
Cabinet under KRS Chapter 281;
(16) Motor vehicles registered under KRS 186.050 that have a declared gross vehicle
weight with any towed unit of forty-four thousand and one (44,001) pounds or <br>greater;
(17) Farm trucks registered under KRS 186.050(4) that have a declared gross vehicle
weight with any towed unit of forty-four thousand and one (44,001) pounds or <br>greater; and
(18) In order to be eligible for the exemption established in subsections (16) and (17) of
this section, motor vehicles shall be required to be registered at the appropriate <br>range for the declared gross weight of the vehicle established in KRS 186.050(3)(b) <br>and shall be prohibited from registering at a higher weight range. If a motor vehicle <br>is initially registered in one (1) declared gross weight range and subsequently is <br>registered at a declared gross weight range lower than forty-four thousand and one <br>(44,001) pounds, the person registering the vehicle shall be required to pay the <br>county clerk the usage tax due on the vehicle unless the person can provide written <br>proof to the clerk that the tax has been previously paid.
Effective: March 6, 2006 <br>History: Amended 2006 Ky. Acts ch. 6, sec. 12, effective March 6, 2006. -- Amended
2005 Ky. Acts ch. 173, Pt. XIX, sec. 1, effective August 1, 2005. -- Amended 2003 <br>Ky. Acts ch. 124, sec. 39, effective October 1, 2003; and ch. 103, sec. 4, effective <br>June 24, 2003. -- Amended 1998 Ky. Acts ch. 290, sec. 1, effective July 15, 1998. -- <br>Amended 1994 Ky. Acts ch. 54, sec. 2, effective July 15, 1994. Amended 1992 Ky. <br>Acts ch. 342, sec. 1, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 187, <br>sec. 3, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 118, sec. 105, effective <br>July 1, 1987. -- Amended 1980 Ky. Acts ch. 144, sec. 1, effective July 15, 1980. -- <br>Amended 1976 Ky. Acts ch. 155, sec. 4. -- Amended 1974 Ky. Acts ch. 123, sec. 1. -<br>- Amended 1972 Ky. Acts ch. 84, Pt. IV, sec. 1; and ch. 184, sec. 1. -- Amended <br>1970 Ky. Acts ch. 13, sec. 1. -- Amended 1968 Ky. Acts ch. 40, Part III, sec. 3. -- <br>Amended 1960 Ky. Acts ch. 5, Art. II, sec. 2. -- Amended 1956 (2d Extra. Sess.) Ky. <br>Acts ch. 5, sec. 4A. -- Amended 1950 Ky. Acts ch. 63, sec. 59. -- Recodified 1942 <br>Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281i-3.
Legislative Research Commission Note (3/6/2006). 2006 Ky. Acts ch. 6, sec. 29,
provides that this section applies retroactively to July 1, 2005.
Legislative Research Commission Note (6/24/2003). 2000 Ky. Acts ch. 408, sec. 178,
renumbered the former subsection (4) of KRS 186.045 as subsection (3), but that Act <br>failed to include a conforming amendment to change the reference to that subsection <br>in subsection (13) of this statute. Under KRS 7.136(1)(e), that change has now been <br>made.
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