An annual fee is assessed as part of vehicle registration fees. The fee will be based on the fleet miles in Kentucky and the purchase price of the registered vehicle.
Sales & use taxes
A state sales and use tax is levied in Kentucky, with the provision for some additional local taxes. In addition, a use tax is levied at the same rate on personal property purchased for storage, use or other consumption in Kentucky. Neither the sales nor the use tax applies to a sale of services.
Tax is applicable to leasing arrangements. Over the road equipment used exclusively in interstate commerce in Kentucky is exempt from the sales/use tax. If sales/use tax has been paid to another jurisdiction, and there is a reciprocal agreement between that state and Kentucky, credit will be allowed for the amount of tax paid to the other jurisdiction.
A sales and use tax exemption exists for the repair and replacement parts for trucks 44,001 pounds or greater. The exemption applies to repair and replacement parts for the direct operation or maintenance of a motor vehicle, including any towed unit, used exclusively in interstate commerce for the conveyance of property or passengers for hire. To apply for the exemption, complete the application for truck part direct pay authorization (Form 51A160).
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