Current through Register Vol. 50, No. 6, December 1, 2023
RELATES TO: KRS 138.450-138.470
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
department to promulgate administrative regulations for the administration of
all tax laws. This administrative regulation establishes the procedures to
determine the retail value.
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 if 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 manual prescribed by the department, and if a
notarized affidavit signed by both the buyer and the seller is not available,
retail price shall be determined by the department based upon relevant,
available information.
(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
Guide;
(b) NADA Official Older Used
Car Guide; or
(c) NADA Classic
Collectible and Special Interest Car Appraisal Guide.
(2) Other trucks: NADA Official Commercial
Truck Guide.
(3) Miscellaneous
vehicles:
(a) NADA Recreational Vehicle
Appraisal Guide;
(b) NADA Van/Truck
Conversion and Limousine Appraisal Guide; or
(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
listed in this section provided in the price reference manual, prescribed in
Section 3 of this administrative regulation, or other source of MSRP
information.
Section 5.
Forms.
(1) The department forms applicable to
this regulation are:
(a) Revenue Form 71A100,
"Affidavit of Total Consideration Given for a Motor Vehicle"; and
(b) Revenue Form 71F001, "Kentucky's Taxation
of Motor Vehicles for Motor Vehicle Usage Tax".
(2) These forms may be inspected, copied, or
obtained, subject to applicable copyright law, at:
(a) The Kentucky Department of Revenue, 501
High Street, Frankfort, Kentucky 40620;
(b) A Kentucky Taxpayer Service Center,
Monday through Friday, 8 a.m. to 4:30 p.m.; or
(c) The department Web site at
http://revenue.ky.gov.
25 Ky.R. 1743; Am.
2126; eff. 2-25-1999; TAm eff. 5-20-2009; TAm eff. 6-28-2016; 44 Ky.R. 780,
1212; eff. 1-5-2018.
STATUTORY AUTHORITY:
KRS
131.130(1),
138.460(12)(b)