UNOFFICIAL COPY 23 RS BR 378
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AN ACT relating to the taxation of recreational vehicles. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 138.450 is amended to read as follows: 3
As used in KRS 138.455 to 138.470, unless the context requires otherwise: 4
(1) "Current model year" means a motor vehicle of either the model year corresponding 5
to the current calendar year or of the succeeding calendar year, if the same model 6
and make is being offered for sale by local dealers; 7
(2) "Dealer" means "motor vehicle dealer" as defined in KRS 190.010; 8
(3) "Dealer demonstrator" means a new motor vehicle or a previous model year motor 9
vehicle with an odometer reading of least one thousand (1,000) miles that has been 10
used either by representatives of the manufacturer or by a licensed Kentucky dealer, 11
franchised to sell the particular model and make, for demonstration; 12
(4) "Historic motor vehicle" means a motor vehicle registered and licensed pursuant to 13
KRS 186.043; 14
(5) "Motor vehicle" means: 15
(a) Any vehicle that is propelled by other than muscular power and that is used 16
for transportation of persons or property over the public highways of the state, 17
except road rollers, mopeds, vehicles that travel exclusively on rails, and 18
vehicles propelled by electric power obtained from overhead wires; or 19
(b) Recreational vehicles; 20
(6) "Moped" means either a motorized bicycle whose frame design may include one (1) 21
or more horizontal crossbars supporting a fuel tank so long as it also has pedals, or a 22
motorized bicycle with a step through type frame which may or may not have pedals 23
rated no more than two (2) brake horsepower, a cylinder capacity not exceeding 24
fifty (50) cubic centimeters, an automatic transmission not requiring clutching or 25
shifting by the operator after the drive system is engaged, and capable of a 26
maximum speed of not more than thirty (30) miles per hour; 27 UNOFFICIAL COPY 23 RS BR 378
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(7) "New motor vehicle" means a motor vehicle of the current model year which has 1
not previously been registered in any state or country; 2
(8) "Previous model year motor vehicle" means a motor vehicle not previously 3
registered in any state or country which is neither of the current model year nor a 4
dealer demonstrator; 5
(9) "Total consideration given" means the amount given, valued in money, whether 6
received in money or otherwise, at the time of purchase or at a later date, including 7
consideration given for all equipment and accessories, standard and optional. "Total 8
consideration given" shall not include: 9
(a) Any amount allowed as a manufacturer or dealer rebate if the rebate is 10
provided at the time of purchase and is applied to the purchase of the motor 11
vehicle; 12
(b) Any interest payments to be made over the life of a loan for the purchase of a 13
motor vehicle; and 14
(c) The value of any items that are not equipment or accessories including but not 15
limited to extended warranties, service contracts, and items that are given 16
away as part of a promotional sales campaign; 17
(10) "Trade-in allowance" means: 18
(a) The value assigned by the seller of a motor vehicle to a motor vehicle 19
registered to the purchaser and offered in trade by the purchaser as part of the 20
total consideration given by the purchaser and included in the notarized 21
affidavit attesting to total consideration given; or 22
(b) In the absence of a notarized affidavit, the value of the vehicle being offered 23
in trade as established by the department through the use of the reference 24
manual; 25
(11) "Used motor vehicle" means a motor vehicle which has been previously registered 26
in any state or country; 27 UNOFFICIAL COPY 23 RS BR 378
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(12) "Retail price" for: 1
(a) New motor vehicles; 2
(b) Dealer demonstrator vehicles; 3
(c) Previous model year motor vehicles; and 4
(d) U-Drive-It motor vehicles that have been transferred within one hundred 5
eighty (180) days of being registered as a U-Drive-It and that have less than 6
five thousand (5,000) miles; 7
means the total consideration given, as determined in KRS 138.4603; 8
(13) "Retail price" for historic motor vehicles shall be one hundred dollars ($100); 9
(14) "Retail price" for used motor vehicles being titled or registered by a new resident 10
for the first time in Kentucky whose values appear in the reference manual means 11
the trade-in value given in the reference manual; 12
(15) "Retail price" for older used motor vehicles being titled or registered by a new 13
resident for the first time in Kentucky whose values no longer appear in the 14
reference manual shall be one hundred dollars ($100); 15
(16) (a) "Retail price" for: 16
1. Used motor vehicles, except those vehicles for which the retail price is 17
established in subsection (13), (14), (15), (17), or (19) of this section; 18
and 19
2. U-Drive-It motor vehicles that are not transferred within one hundred 20
eighty (180) days of being registered as a U-Drive-It or that have more 21
than five thousand (5,000) miles; 22
means the total consideration given, excluding any amount allowed as a trade-23
in allowance by the seller, as attested to in a notarized affidavit, provided that 24
the retail price established by the notarized affidavit shall not be less than fifty 25
percent (50%) of the difference between the trade-in value, as established by 26
the reference manual, of the motor vehicle offered for registration and the 27 UNOFFICIAL COPY 23 RS BR 378
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trade-in value, as established by the reference manual, of any motor vehicle 1
offered in trade as part of the total consideration given. 2
(b) The trade-in allowance shall also be disclosed in the notarized affidavit. 3
(c) If a notarized affidavit is not available, "retail price" shall be established by 4
the department through the use of the reference manual; 5
(17) Except as provided in KRS 138.470(6), if a motor vehicle is received by an 6
individual as a gift and not purchased or leased by the individual, "retail price" shall 7
be the trade-in value given in the reference manual; 8
(18) If a dealer transfers a motor vehicle which he has registered as a loaner or rental 9
motor vehicle within one hundred eighty (180) days of the registration, and if less 10
than five thousand (5,000) miles have been placed on the vehicle during the period 11
of its registration as a loaner or rental motor vehicle, then the "retail price" of the 12
vehicle shall be the same as the retail price determined by paragraph (a) of 13
subsection (12) of this section computed as of the date on which the vehicle is 14
transferred; 15
(19) "Retail price" for motor vehicles titled pursuant to KRS 186A.520, 186A.525, 16
186A.530, or 186A.555 means the total consideration given as attested to in a 17
notarized affidavit; 18
(20) "Loaner or rental motor vehicle" means a motor vehicle owned or registered by a 19
dealer and which is regularly loaned or rented to customers of the service or repair 20
component of the dealership; 21
(21) "Department" means the Department of Revenue; 22
(22) "Notarized affidavit" means a dated affidavit signed by the buyer and the seller on 23
which the signature of the buyer and the signature of the seller are individually 24
notarized;[ and] 25
(23) "Reference manual" means the automotive reference manual prescribed by the 26
department; and 27 UNOFFICIAL COPY 23 RS BR 378
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(24) "Recreational vehicle" means any motor home, travel trailer, fifth-wheel trailer, 1
pull-behind camper, or pop-up camping trailer, which: 2
(a) Contains living quarters; and 3
(b) Is required to be licensed in order to be used on the public highways. 4
Section 2. This Act takes effect January 1, 2024. 5