103 KAR 44:070. Taxation of loaner and
rental motor vehicles.
RELATES TO: KRS 131.180,138.450-138.470,
STATUTORY AUTHORITY: KRS 131.130(1),
NECESSITY, FUNCTION, AND CONFORMITY: KRS
131.130(1) authorizes the Department of Revenue to promulgate administrative
regulations for the administration of all tax laws. KRS 138.4605 authorizes the
department to promulgate administrative regulations prescribing forms and procedures
to collect the tax due on loaner or rental motor vehicles. This administrative
regulation establishes those forms and procedures.
Section 1. Definitions. (1)
"AVIS" means the Automated Vehicle Information System prescribed by
KRS Chapter 186A.
(2) "Department" is defined by
(3) "Due date" means the date
by which a report and payment of loaner or rental tax due shall be submitted to
(4) "Eligible taxpayer" means a
motor vehicle dealer licensed under KRS 190.010 who in the course of business
loans or rents designated motor vehicles exclusively to customers of their
service or repair components.
(5) "Loaner or rental motor
vehicle" is defined by KRS 138.450(13).
(6) "Month" means a calendar
month or any portion of a calendar month.
Section 2. Reporting and Payment
Requirements. (1) On or after July 15, 2002, any eligible taxpayer who has
vehicles dedicated as loaner or rental motor vehicles shall:
(a) Register with the department
utilizing Revenue Form 73A054;
(b) Provide the county clerk with their
dealer number as issued by the Kentucky Motor Vehicle Commission; and
(c) Provide to the department a listing
of all vehicles designated as loaner or rental motor vehicles including the
vehicle identification number, license plate number, make, model, and model
(2) Vehicles registered pursuant to KRS
138.4605 as in effect prior to July 15, 2002 shall automatically become subject
to the amended provisions of KRS 138.4605 effective July 15, 2002 unless the
(a) Immediately transfers the vehicle out
of the dealer’s name; or
(b) Elects to pay the regular motor
vehicle usage tax on the retail price of the vehicle.
(3) On or after July 15, 2002, any
registered eligible taxpayer who wishes to designate a vehicle as a loaner or
rental motor vehicle shall advise the county clerk of this designation when the
vehicle is first registered or transferred to the dealer. The county clerk
shall enter the dealer number and appropriate exception code, provided by the department,
in the AVIS computer system. The motor vehicle usage tax shall not be collected
by the county clerk. The taxpayer shall also notify the department of the
addition of the vehicle to the loaner or rental program when the next monthly
report is submitted.
(4) If a dealer transfers a vehicle out
of inventory to be used in the loaner or rental program, he shall notify the department
of the transfer to the loaner or rental program when the next monthly report is
(5) On or after July 15, 2002, any
registered eligible taxpayer who has vehicles identified to the department as
loaner or rental motor vehicles shall submit to the department on a monthly
basis a report of the number of these vehicles utilizing Revenue Form 73A055
and remit payment of twenty-five (25) dollars per vehicle with the report,
pursuant to KRS 138.4605.
(6) The due date of the report and
payment shall be fifteen (15) calendar days after the last day of the reporting
(7) Penalties provided in KRS 131.180 and
138.990 shall apply to any late report or payment.
Section 3. Incorporation by Reference.
(1) The following material is incorporated by reference:
(a) Revenue Form 73A054 "Kentucky
Application For Dealer Loaner/Rental Vehicle Tax", July 2002; and
(b) Revenue Form 73A055 "Monthly
Report For Dealer Loaner/Rental Vehicle Tax", July 2002.
(2) These forms may be inspected, copied,
or obtained, subject to applicable copyright law, at the Kentucky Department of
Revenue, 501 High Street, Frankfort, Kentucky 40620, or at any Kentucky Revenue
Cabinet Taxpayer Service Center, Monday through Friday, 8 a.m. to 4:30 p.m. (29
Ky.R. 1426; Am. 1759; eff. 1-16-03; Tam eff. 5-20-09.)