103 KAR 44:060. Motor vehicle usage tax

valuation.

 

      RELATES TO: KRS 138.450-138.470

      STATUTORY AUTHORITY: KRS Chapter 13A,

131.130, 138.460

      NECESSITY, FUNCTION, AND CONFORMITY:

House Bill 74 enacted by the 1998 Kentucky General Assembly made significant

changes in the valuation of motor vehicles for motor vehicle usage tax. KRS

138.460, as amended and effective August 1, 1998, authorizes the Department of

Revenue to promulgate administrative regulations prescribing documentation

necessary to carry out the provisions of HB 74. KRS 131.130(1) authorizes the department

to make administrative regulations for the administration of all tax laws. This

administrative regulation establishes the form and procedures required for the

implementation of House Bill 74 and replaces emergency administrative

regulation 103 KAR 44:060E.

 

      Section 1. Definitions. (1)

"Gift" means the transfer of a motor vehicle from one (1) party to

another for no consideration or nominal consideration.

      (2) "MSRP" means the

manufacturer's suggested retail price.

 

      Section 2. The following special

valuation procedures shall be followed:

      (1) For purposes of establishing retail

price for used motor vehicles when a notarized affidavit signed by both the

buyer and the seller is not available, retail price shall be the average retail

value as listed in the appropriate automotive reference manual prescribed in

Section 3 of this administrative regulation.

      (2) For purposes of

establishing retail price for used motor

vehicles whose values do not appear in the automotive reference manuals

prescribed by the department, and when a notarized affidavit signed by

both the buyer and the seller is not available, retail price shall be determined by the department.

      (3) For purposes of

establishing retail price for used vehicles

of the current model year for which an average retail value has not been

published in one of the reference manuals prescribed by the department, retail

price shall be eighty-five (85) percent of the MSRP, including the MSRP of all

equipment and accessories, standard and optional, and transportation charges.

 

      Section 3. The following automotive

reference manuals shall be followed for the valuation of the motor vehicles

contained therein for motor vehicle usage tax, listed in order of prescribed

use:

      (1) Automobiles and light trucks:

      (a) NADA Official Used Car Guideâ;

      (b) NADA Official Older Used Car Guide;

      (c) NADA Classic Collectible and Special

Interest Car Appraisal Guide.

      (2) Other trucks: NADA Official Commercial

Truck Guideâ.

      (3) Miscellaneous vehicles:

      (a) NADA Recreational Vehicle Appraisal

Guide;

      (b) NADA Van/Truck Conversion and

Limousine Appraisal Guide;

      (c) NADA

Motorcycle/Snowmobile/ATV/Personal Watercraft Appraisal Guide.

      (4) General use: Automotive Invoice

Service New Car Cost Guide.

 

      Section 4. (1) If an affidavit of total

consideration given is not available and a retail price based on MSRP is

prescribed by statute, a copy of the window sticker or other documentation from

the manufacturer showing MSRP and listing the base price, all equipment and

accessories, standard and optional, and transportation charges shall be

provided to the county clerk when a new automobile is presented for

registration.

      (2) An itemized statement showing the

MSRP of any additional equipment and accessories installed by the dealer and

not reflected on the window sticker shall also be provided to the county clerk.

      (3) If the manufacturer's documentation

does not include complete MSRP information, the department shall obtain MSRP

information from available sources.

      (4) If the manufacturer's invoice to the

dealer does not contain MSRP information, the dealer shall provide the county

clerk a copy of the manufacturer's invoice and provide an itemized list of all

equipment and accessories whether installed by the manufacturer or dealer, plus

transportation charges.

      (5) Taxable valuation shall then be

determined through the use of MSRP information provided in the price reference

manual prescribed in Section 3 of this administrative regulation, or other

source of MSRP information.

 

      Section 5. Incorporation by Reference.

(1) The following items are incorporated by reference:

      (a) Revenue Form 71A100, "Affidavit

of Total Consideration Given for a Motor Vehicle", October 1998.

      (b) Revenue Form 71F001, "Kentucky’s

Taxation of Motor Vehicles for Motor Vehicle Usage Tax", December 1998.

      (2) These documents may be inspected,

copied, or obtained at the Kentucky Department of Revenue, 200 Fair Oaks Lane,

Frankfort, Kentucky 40620, or at any Kentucky Department of Revenue Taxpayer

Service Center, Monday through Friday, 8 a.m. to 4:30 p.m. (25 Ky.R. 1743; Am.

2126; eff. 2-25-99; Tam eff. 5-20-09.)