SB 35/FN (BR 1090) - C. Borders
AN ACT relating to the taxation of motor vehicles.
Amend KRS 138.450, relating to usage tax on motor vehicles to require usage tax on most motor vehicles to be based on an affidavit attesting to the actual consideration paid for the vehicle rather than the NADA book value; specify that actual consideration shall not include any amount allowed as a trade-in allowance, any amount allowed as a dealer rebate, or any interest payments made over the life of a loan for the purchase of the motor vehicle; require the NADA book value to be used for new residents registering a vehicle for the first time in Kentucky; amend KRS 138.460 to require the revenue cabinet to provide affidavit forms to each county clerk who shall provide the forms free of charge to the public; prohibit a county clerk from registering a motor vehicle if a notarized affidavit is required to complete the transaction and the buyer and seller have failed to prepare the affidavit; amend KRS 138.990 to establish penalties for individuals and dealers who willfully and fraudulently give a false statement on the affidavit as to the actual consideration given for a motor vehicle as follows: for a individual convicted of a first offense, one to five years in prison and a $1000 fine, for a second or subsequent offense, five to ten years in prison and a $5000 fine; for a dealer convicted of a first offense, one to five years in prison and a $1000 fine, for a second offense, the dealer loses his license for life, and is given a prison term of five to ten years with a minimum fine of $5000; amend KRS 134.810, 186.190, 186.232, 190.037, 190.040, and 190.990 to conform; amend KRS 132.485 to provide average trade-in value be used by the property valuation administrator to assess motor vehicles; amend KRS 138.810 to conform; create a new section of KRS Chapter 132 to calculate a maximum compensating tax rate for motor vehicles and permit local taxing districts to levy the maximum compensating tax rate; provide that amendments contained in Sections 1 through 8 of this Act shall apply for motor vehicles sold after July 31, 1998 and provide that Sections 9 through 11 of this Act shall apply for motor vehicles assessed on or after January 1, 1999.
(Prefiled by the sponsor(s).)
Jan 6-introduced in Senate; to Appropriations and Revenue (S)