Kentucky: Motor Vehicle Commission

Title: House Bill 380, Part 36-Sales of Motor Vehicles to Non-Residents

Section 1: KRS139.470 is amended to read as follows:

21) Gross receipts from the sale of any motor vehicle as defined in KRS 138.450 which is:

(a)     Sold to a Kentucky resident, registered for use on the public highways,
  and upon which any applicable tax levied by KRS 138.460 has been paid; or
(b)     Sold to a nonresident of Kentucky if the nonresident registers the motor
  vehicle in a state that:
  1.      Allows residents of Kentucky to purchase motor vehicles without
   payment of that state's sales tax at the time of sale; or
  2.      Allows residents of Kentucky to remove the vehicle from that
   state within a specific period for subsequent registration
   and use in Kentucky without payment of that state's sales tax;

SECTION 2. A NEW SECTION OF KRS CHAPTER 139 IS CREATED TO READ AS FOLLOWS:
All tax receipts, interest, and penalties resulting from the sale of a motor vehicle
subject to sales tax under KRS 139.200 and not otherwise exempt from sales tax under
Section 1 of this Part shall be deposited in the road fund, unless the motor vehicle
has been exempted from the motor vehicle usage tax under KRS 138.460(3) for
nonhighway use. All tax receipts, interest, and penalties resulting from the sale of
a motor vehicle, as defined in KRS 138.450, which is purchased for nonhighway use
shall continue to be deposited in the general fund.

Section 3. This Part takes effect August 1, 2006.

Amendment to House Bill 380