103 KAR 44:070. Taxation of loaner and

rental motor vehicles.

 

      RELATES TO: KRS 131.180,138.450-138.470,

138.990

      STATUTORY AUTHORITY: KRS 131.130(1),

138.4605

      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

KRS 131.010(2).

      (3) "Due date" means the date

by which a report and payment of loaner or rental tax due shall be submitted to

the department.

      (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

year.

      (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

dealer:

      (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

submitted.

      (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

month.

      (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.)