Page 1 of 2 LRC 2025-BR56-HB113
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2025 REGULAR SESSION
MEASURE
2025 BR NUMBER 56 HOUSE BILL NUMBER 113
TITLE AN ACT relating to motor vehicle usage tax.
SPONSOR Representative Peyton Griffee
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED:
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED
FISCAL ESTIMATES 2024-2025 2025-2026 ANNUAL IMPACT AT FULL
IMPLEMENTATION
REVENUES (Indeterminable) (Indeterminable)
EXPENDITURES
NET EFFECT (Indeterminable) (Indeterminable)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: HB 113 would exempt motor vehicles from the motor vehicle usage tax
imposed by KRS 138.460 which were previously registered in another state, and owned by a current or
former member of the Armed Forces of the United States, provided that the motor vehicle was purchased
when the owner was on active duty.
FISCAL EXPLANATION : In order to estimate potential foregone revenue, it is necessary to know
the price of used vehicles and the number of vehicles registered and titled in Kentucky that were
previously registered in another state by a current or former member of the Armed Forces of the United
States, and only if the vehicle was purchased when the owner was on active duty.
According to J.D. Power Valuation Services, the average price of a used vehicle in 2024 was
approximately $28,300. However, no data exists regarding the number of vehicles registered in Kentucky
by current or former members of the Armed Forces, provided that the vehicle was purchased when the
owner was on active duty. Because this data does not exist, the fiscal impact of 2025 Regular Session HB
113 is negative but indeterminable.
If this data did exist, the fiscal impact could be determined by taking the number of vehicles registered in
Kentucky by current or former members of the Armed Forces, provided that the vehicle was purchased
when the owner was on active duty, multiplying it by the average price of used vehicles, then multiplying
the resulting value by Kentucky’s motor vehicle usage tax of six percent.
Page 2 of 2 LRC 2025-BR56-HB113
DATA SOURCE(S): LRC Economists and Appropriations and Revenue Staff
PREPARER: Katy Jenkins NOTE NUMBER : 8 REVIEW: DATE: 1/16/2025