Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
138.450 -138.470
NECESSITY, FUNCTION AND CONFORMITY:
KRS
138.460(12)(b) requires the
Department of Revenue to promulgate administrative regulations to develop the
forms and the procedures by which the owner of a motor vehicle may apply for a
refund and document the condition of the vehicle under
KRS
138.460(12)(a).
KRS
131.130(1) authorizes the
Department of Revenue to promulgate administrative regulations for the
administration of all tax laws. This administrative regulation establishes the
procedures required for claiming and documenting a refund request for motor
vehicle usage tax when the tax paid was based upon fifty (50) percent of
trade-in value as provided in
KRS
138.450(16)(a) and the
actual condition of the vehicle at the time the usage tax was paid was less
than fifty (50) percent of the trade-in value.
Section 1. Definitions.
(1) "Adjusted retail price" means, for a
motor vehicle subjected to motor vehicle usage tax pursuant to the provisions
of
KRS
138.450(16)(a), the price
based upon the following calculation:
(a)
Trade-in value based on the reference guide for the motor vehicle listed on the
Vehicle Condition Refund Application (71A010);
(b) Less the trade-in value based on the
reference guide for any motor vehicle given in trade; and
(c) Less any repair cost listed in the
vehicle condition verification documents submitted to the
department.
(2)
"Reference manual" is defined by
KRS
138.450(23).
(3) "Repair cost" means costs or estimates
for parts or labor to return the motor vehicle to trade-in value or drivable
condition, except for upgrading or improving the vehicle beyond trade-in value
condition.
(4) "Vehicle condition
verification documents" means originals or copies of the following dated items:
(a) Photographs of the vehicle supplied by
the motor vehicle owner or the Department of Revenue that:
1. Are taken by the owner or Department of
Revenue personnel;
2. Indicate the
condition of the vehicle; and
3.
Show the vehicle damage and the VIN plate attached to the vehicle;
(b) Copies of receipts for parts
purchased for repair that contain the name of the parts purchase, the price of
the parts, the name, address, and telephone number of the business where
purchased, and the date of purchase;
(c) Copies of repair cost estimates that
contain the VIN of the vehicle being repaired, the date the estimate was
prepared, and the name, address, and telephone number of the estimate preparer;
or
(d) Copies of repair cost
receipts that contain the VIN of the vehicle being repaired, the date the
repair was rendered, and the name, address, and telephone number of the vehicle
repairer.
(5) "Vehicle
Identification Number" or "VIN" means the numbers, letters, or combination of
numbers and letters assigned by the manufacturer or a governmental entity and
stamped upon or otherwise affixed to a motor vehicle or motor vehicle part for
the purpose of identification, except for the letters, numbers, or combinations
on registration plates issued under KRS Chapter 186.
Section 2. Refund Application Process.
(1) The owner of a motor vehicle who has paid
the motor vehicle usage tax according to the provisions of
KRS
138.450(16)(a) and requests
a refund of a portion of the tax paid shall submit to the department a
completed Vehicle Condition Refund Application (Form 71A010) with the following
documents attached:
(a) A copy of the owner's
Kentucky Registration Receipt (Form TC 96-181) for the vehicle;
(b) A copy of the owner's completed
Application for Kentucky Certificate of Title/Registration (Form TC 96-182) for
the vehicle; and
(c) At least two
(2) vehicle condition verification documents.
(2) All documents submitted with the Vehicle
Condition Refund Application shall include the VIN to identify the motor
vehicle for which the applicant is requesting the refund.
(3) The owner of the motor vehicle may
utilize one of the department's Taxpayer Service Centers to obtain photographs
of the damaged vehicle and for submittal of the Vehicle Condition Refund
Application.
Section 3.
Refund Calculation Amount.
(1) The department
shall consider all refund requests based upon whether the condition of the
motor vehicle at the time the motor vehicle usage tax was paid as evidenced by
documentation provided to the department merits an adjusted retail
price.
(2) Any approved refund
shall be the actual amount of tax paid less the tax due based on the greater of
the adjusted retail price or the applicant's purchase price as stated on the
Application for Kentucky Certificate of Title or Registration (Form TC
96-182).
Section 4.
Refund Denial. Any incomplete or erroneous information on the Vehicle Condition
Refund Application (Form 71A010) or the associated vehicle condition
verification documents shall result in the denial of the refund. If the
department has denied a refund request, the applicant may resubmit a refund
request if additional information is made available.
Section 5. Forms.
(1) The department forms listed herein 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.
(2) Form TC 96-181 and TC 96-182
listed herein may be inspected, copied, or obtained, subject to applicable
copyright law, at the Kentucky Transportation Cabinet Forms Library Web site at
http://transportation.ky.gov/Organizational-Resources/Pages/Forms-Library.aspx.
or by calling (502)564-4610.
STATUTORY AUTHORITY: 131.130(1), 138.450,
138.460
