Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 131.110(1), 131.340, 186.020(1), (3), 186.040,
186.050(13)(a), 186.051(2), 186.180, 186.240(2), 49 U.S.C. 31704
NECESSITY, FUNCTION, AND CONFORMITY: 49 U.S.C. 31704 requires
each state to participate in the International Registration Plan. KRS 186.051(3) requires the Transportation Cabinet to promulgate an administrative
regulation establishing a system of staggered registration time periods for
commercial motor vehicles. KRS 186.050(13)(a) requires the Transportation
Cabinet to promulgate an administrative regulation concerning the registration
of commercial motor vehicles pursuant to the Articles of the International
Registration Plan. This administrative regulation establishes the procedures
required to register a commercial motor vehicle under the provisions of the
International Registration Plan; clarifies if a vehicle licensed pursuant to
KRS 186.050(13) is required to be licensed as established in other sections of
KRS 186.050; and establishes the recordkeeping standards required for
apportionable vehicles, auditing of the records by the Transportation Cabinet,
and the appeal procedure if a disagreement occurs.
Section 1. Definitions.
(1) "Apportionable vehicle":
(a) Means a power conveyance that is used or
intended for use in two (2) or more International Registration Plan
Jurisdictions that is used for the transportation of persons for hire or
designed, used, or maintained primarily for the transportation of property and:
1. Has two (2) axles and gross vehicle weight
or registered gross vehicle weight in excess of 26,000 pounds (11,793.401
kilograms);
2. Has three (3) or
more axles, regardless of weight; or
3. Is used in combination for a vehicle with
a gross weight in which the combination exceeds 26,000 pounds (11,793.401
kilograms); and
(b) Does
not mean a recreational vehicle; a vehicle displaying restricted plates, or a
government-owned vehicle, except a truck or truck-tractor or a power conveyance
in a combination of vehicles having a gross vehicle weight of 26,000 pounds
(11,793.401 kilograms) or less. The vehicle types excluded by this paragraph
are usually registered pursuant to a plan at the option of the
registrant.
(2) "Base
jurisdiction" means the member jurisdiction selected in accordance with the
International Registration Plan to which an applicant applies for apportioned
registration, or the member jurisdiction that issues apportioned registration
to a registrant under the plan.
(3)
"Established place of business" means a physical structure located within the
base jurisdiction:
(a) Owned, leased, or
rented by the fleet registrant;
(b)
Designated by a street number or road location;
(c) Open during normal business
hours;
(d) In which is located:
1. A person conducting the fleet registrant's
business; and
2. The operational
records of the fleet necessary for audit.
(4) "Fleet" means one (1) or more
apportionable vehicles designated by a registrant for distance reporting as
established in the International Registration Plan.
(5) "International Registration Plan" or
"IRP" means a registration reciprocity agreement among the states of the United
States and provinces of Canada providing for payment of license fees on the
basis of total distance operated in all jurisdictions.
(6) "Jurisdiction" means a country, state,
province, territory, possession, or federal district of a country.
(7) "Operational records" means source
documents that evidence distance travelled by a fleet in a member jurisdiction
such as fuel reports, trip sheets, and driver logs, including those that are
generated through on-board recording devices and maintained electronically as
required by the IRP Audit Assistance manual.
Section 2. Application for Apportioned
Registration.
(1) The operator of an
apportionable vehicle operating in more than one (1) licensing jurisdiction
shall apply for apportioned registration in the jurisdictions of operation that
are members of the IRP unless a trip permit has been purchased for each trip
into the jurisdiction.
(2) A
vehicle, or combination of power unit and trailer having a gross vehicle weight
of 26,000 pounds or less and two (2) axle vehicles may be apportioned
registered at the option of the registrant.
(3) If Kentucky is the base jurisdiction for
an operator of an apportionable vehicle, the operator's established place of
business shall apply for the apportioned registration in Kentucky.
Section 3. Apportioned Mileage
Reporting and Recordkeeping.
(1)
(a) The fleet miles required to be reported
on Kentucky IRP Apportioned Registration Application Schedule B, TC 95-303B
shall be the fleet miles traveled from July 1 through June 30 of the year
immediately preceding the registration year.
(b) If the registration year begins on a date
in July, August, or September, the reporting period shall be the previous
twelve (12) month period.
(c) The
following table is provided for illustration purposes:
First Month of Registration Year |
Reporting Period |
January, 1975 |
July 1, 1973 - June 30, 1974 |
February, 1975 |
July 1, 1973 - June 30, 1974 |
March, 1975 |
July 1, 1973 - June 30, 1974 |
April, 1975 |
July 1, 1973 - June 30, 1974 |
May, 1975 |
July 1, 1973 - June 30, 1974 |
June, 1975 |
July 1, 1973 - June 30, 1974 |
July, 1975 |
July 1, 1973 - June 30, 1974 |
August, 1975 |
July 1, 1973 - June 30, 1974 |
September, 1975 |
July 1, 1973 - June 30, 1974 |
October, 1975 |
July 1, 1974 - June 30, 1975 |
November, 1975 |
July 1, 1974 - June 30, 1975 |
December, 1975 |
July 1, 1974 - June 30, 1975 |
(d) The
mileage shall be distributed by jurisdiction. Miles travelled in a jurisdiction
by an apportioned power unit, whether or not a member of the International
Registration Plan, and whether the vehicle is empty or loaded, shall be
reported.
(e) The mileage reported
for a motor vehicle power unit that was added to, or deleted from the
apportioned fleet during the mileage reporting period shall be the miles
generated while the motor vehicle power unit was part of the apportioned
fleet.
(f) Mileage shall include:
1. Loaded and unloaded trips;
2. Intrastate and interstate trips;
and
3. Miles operated under trip
permits.
(2)
(a) An apportioned registrant shall maintain
operational records for the current registration year and the three (3)
registration years immediately prior to the current year.
(b) The information shall be retained in an
individual vehicle mileage record.
(c) The individual vehicle mileage record
shall contain the:
1. Registrant's name and
fleet number;
2. Beginning and
ending date of trip;
3. Trip origin
and destination;
4. Route of travel
for trip;
5. Beginning and ending
odometer or hubometer reading of each trip;
6. Total trip miles and mileage;
7. Mileage by jurisdiction for each
trip;
8. Vehicle unit number and
vehicle identification number; and
9. Driver's name or signature.
Section 4.
Proof of Insurance and Certificate of Apportioned Registration.
(1) The applicant shall apply to the
appropriate county clerk for a certificate of apportioned registration for each
vehicle in the fleet, and a vehicle to be apportioned registered.
(2) The county clerk's fee shall be collected
as established in KRS 186.040 and 186.050.
(3) A vehicle owned by a non-Kentucky
registrant that is properly titled in a foreign jurisdiction and leased to a
Kentucky based-motor carrier shall be registered in the name of the Kentucky
based-motor carrier with copies of the foreign title, lease agreement, and the
owner's commercial driver's license.
(4) The applicant shall submit proof of
insurance to the county clerk with the application for the certificate of
apportioned registration.
Section
5. Registration Fees.
(1)
(a) The applicant shall submit an application
for apportioned registration to the Department of Vehicle Regulation.
(b) Original or renewal application shall be
made by using:
1. Kentucky IRP Apportioned
Registration Supplemental Application Schedule C, TC 95-303C; and
2. Kentucky IRP Apportioned Registration
Application Schedule B, TC 95-303B.
(c) After the Department of Vehicle
Regulation has approved an application, the department shall compute the
apportioned registration fee due each jurisdiction under the International
Registration Plan.
(d) The
applicant shall return to the department, either in person or by mail or
electronic payment, the bill and a certified check, cashier's check, personal
check, business check, or money order made payable to the Kentucky State
Treasurer.
(e) If the applicant is
required to post a bond as established in 601 KAR 1:200, Section 6, or has had
a personal or business check returned for insufficient funds to the
Transportation Cabinet by the applicant's bank, the cabinet shall require the
applicant to make payment by cash, certified check, money order, or cashier's
check.
(2) The required
tax and fee shall be accompanied by proof of payment of the federal heavy
vehicle use tax.
(3)
(a) The Department of Vehicle Regulation
shall issue an IRP apportioned license plate and IRP cab card to the registrant
for each IRP registered vehicle.
(b) The originally issued IRP license plate
shall have a decal, indicating the expiration month and year.
(c) After the yearly renewal the registrant
shall be issued a new decal designating the year of expiration and a new IRP
cab card.
(d) The IRP cab card
shall list the jurisdictions in which the registrant has apportioned his or her
registration fees.
(e) The original
IRP cab card shall be carried in the cab of the vehicle continuously.
Section 6. Supplemental
Applications.
(1) An applicant needing to add
or delete a vehicle from a fleet shall file Kentucky IRP Apportioned
Registration Supplemental Application, Schedule C, TC 95-303C with the
department. This form shall be used to provide notice of a:
(a) Vehicle addition;
(b) Vehicle deletion;
(c) Vehicle transfer; or
(d) Gross weight increase.
(2)
(a) A vehicle deletion notice shall be
accompanied by the apportioned registration plate and the IRP cab
card.
(b) At the end of the
registration month, a registrant may apply for a refund of the fees that apply
to the unexpired months of the registration year.
(3)
(a) If
a vehicle is added by a registrant at the same time another vehicle with the
same weight within the fleet is deleted, the Kentucky registration tax shall be
transferred from the deleted to the added vehicle.
(b) The Kentucky transfer fee of three (3)
dollars shall be collected as established in KRS 186.180.
(c) The registrant shall be notified of the
transfer fee owed to other jurisdictions.
(4) If the declared gross weight of the
vehicle is increased, the increased fees shall be prorated from the date the
increased weight is allowed.
Section
7. Conversion to Apportioned Registration.
(1) If a vehicle is an interstate charter bus
or is registered in Kentucky as a commercial or limited activity vehicle, and
the registrant intends to convert to an apportioned registration, the
registrant shall purchase an apportioned registration from the county clerk of
residence.
(2) The current
commercial vehicle, charter bus, or limited activity license plate shall be
submitted to the Department of Vehicle Regulation with the application for
apportioned registration.
(3)
(a) The applicant shall be given credit for
the remainder of the value of current Kentucky registration.
(b) This credit shall be applied toward fees
due to other IRP jurisdictions and collected by Kentucky on the apportioned
registration.
(4) All
fees due to other jurisdictions and a fee due to Kentucky shall be paid in
accordance with Section 5 of this administrative regulation before the
apportioned credentials are issued.
Section 8. Replacement of Credentials.
(1) The owner of a vehicle registered
pursuant to KRS 186.050(13) may obtain a duplicate of a lost IRP cab card from
the Department of Vehicle Regulation. A duplicate shall be obtained by:
(a) Filing Affidavit for Replacement or
Non-exchange, TC 96-167; and
(b)
Paying a fee of three (3) dollars as established in KRS 186.180.
(2) A registration plate issued
pursuant to KRS 186.050(13) that is lost shall be reported as lost or stolen to
the area state police post or local law enforcement agency and the Department
of Vehicle Regulation.
(3)
(a) A new certificate of apportioned
registration shall be issued by the department after review and acceptance of
the completed forms. A new license plate reissued by the department shall bear
a different number from that of the lost plate.
(b) The original copy of the surrendered
certificate of apportioned registration shall be maintained by the
department.
(4) The
department shall cancel the registration corresponding to the number of the
lost plate.
(5) A person finding a
lost registration plate shall return it to the Department of Vehicle Regulation
or to a county clerk.
Section
9. Apportioned Registration of Leased Vehicles.
(1) If an owner or lessor is the registrant
of a vehicle, the vehicle may be registered in the name of the owner or lessor.
(a) The allocation of registration fees shall
be based on the operational records of the owner or lessor; and
(b) The apportioned license plate and the IRP
cab card shall be the property of the lessor.
(2) If the lessee is the registrant of a
vehicle, the vehicle may be registered by the lessee in both the owner's or
lessor's name and that of the lessee.
(a) The
allocation of registration fees shall be based on the operational records of
the lessee; and
(b) The apportioned
license plate and IRP cab card shall be the property of the lessee.
Section 10. Audit of
Apportioned Registrants.
(1) As required by
the IRP, the cabinet's Division of Road Fund Audits shall perform an audit of
fifteen (15) percent of the apportioned registrants based in Kentucky every
five (5) years.
(2) An audit shall
be performed in accordance with the IRP Audit Assistance manual.
(3) The Division of Road Fund Audits shall
notify the apportioned registrant in writing of the date, time, and location of
the audit. Thirty (30) days advance notice shall be given to the
registrant.
(4) Failure of the
registrant to make the records required by Section 3 of this administrative
regulation available upon request shall result in:
(a) A penalty assessment as established in
the IRP Audit Assistance manual; or
(b) Cancellation of apportioned registration
as established in the IRP.
(5)
(a) An
auditor shall conduct and document a pre-audit conference with the registrant
listing:
1. Operation;
2. Audit procedures;
3. Records to be examined;
4. Sample period; and
5. Sampling procedures.
(b) The motor carrier and auditor shall
determine at the pre-audit conference who has responsibility for final
acceptance of the findings and the persons to be involved in the close-out
conference.
(6) An
auditor shall conduct and document a close-out conference with the registrant
outlining preliminary findings that shall include:
(a) Applicable penalty and
interest;
(b)
Recommendations;
(c) Rights of
appeal; and
(d) To whom the audit
report should be addressed.
(7)
(a) The
Transportation Cabinet shall furnish the registrant a letter of audit findings
and recap schedules.
(b) If
requested, the cabinet shall supply other work papers to the
registrant.
(8) If an
audit indicates that additional tax is owed, the Transportation Cabinet shall
issue a tax due statement.
(9)
Within forty-five (45) days of the date of the tax due statement, the
registrant shall:
(a) Pay the supplemental
tax; or
(b) Protest in writing to
the Transportation Cabinet, Division of Road Fund Audits.
Section 11. Protest or Appeal of
Audit Results.
(1)
(a) A written protest may be filed by a
taxpayer, or a person representing a taxpayer, and shall include a supporting
statement, and documents that identify the specific adjustments requested, or
the portion of the audit protested, and shall establish the reason for the
protest as required by KRS 131.110(1).
(b) A protest shall be filed with the
Transportation Cabinet, Division of Road Fund Audits within forty-five (45)
days from the date of the tax due statement.
(2) If the supporting statements and
documentation are not sufficient to change the assessment results, the taxpayer
may request an information gathering, or protest conference with the Division
of Road Fund Audits in writing by using regular mail, facsimile, or electronic
mail.
(3) Within sixty (60) days
from the date the taxpayer submits additional information, or within sixty (60)
days of a protest conference, the Division of Road Fund Audits shall issue a
final ruling to the taxpayer.
Section
12. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) "Kentucky IRP Apportioned
Registration Application, Schedule B", TC Form 95-303B, August 2014;
(b) "Kentucky IRP Apportioned Registration
Supplemental Application, Schedule C", TC Form 95-303C, March 2015;
(c) "Affidavit for Replacement or
Non-Exchange", TC Form 96-167, October, 2014;
(d) "International Registration Plan with
Official Commentary", January 1, 2015;
(e) "Kentucky IRP Apportioned Registration
Policies and Procedures Manual", February 2013; and
(f) "IRP Audit Assistance", 2015.
(2) This material may be
inspected, copied, or obtained, subject to applicable copyright law, as
follows:
(a) For the items incorporated by
reference in paragraphs (a), (b), (c), and (e) of this subsection, at the
Department of Vehicle Regulation, Division of Motor Carriers, 200 Mero Street,
Third Floor, Frankfort, Kentucky 40622, Monday through Friday, 8 a.m. to 4:30
p.m.; or
(b) For the item
incorporated by reference in paragraph (d) of this subsection, at the Office of
Audits, Division of Road Fund Audits, 200 Mero Street, Fourth Floor, Frankfort,
Kentucky 40622, Monday through Friday, 8 a.m. to 4:30 p.m.
STATUTORY AUTHORITY: KRS 186.050(13), 186.051(3), 49 U.S.C. 31704