KRS 138.4602: Determination of motor vehicle retail price for sales on or after

September 1, 2009, and before July 1, 2014.

(1) (a) Effective for sales on or after September 1, 2009, and before July 1, 2014, of:

1. New motor vehicles;

2. Dealer demonstrator vehicles;

3. Previous model year motor vehicles; and

4. U-Drive-It motor vehicles that have been transferred within one hundred

eighty (180) days of being registered as a U -Drive-It and that have less

than five thousand (5,000) miles;

the retail price shall b e determined by reducing the amount of total

consideration given by the trade -in allowance of any motor vehicle traded in

by the buyer. The value of the purchased motor vehicle and the amount of the

trade-in allowance shall be determined as provided in sub section (2) of this

section, and the availability of the trade -in allowance shall be subject to

subsection (3) of this section.

(b) The retail price shall not include that portion of the price of the vehicle

attributable to equipment or adaptive devices ne cessary to facilitate or

accommodate an operator or passenger with physical disabilities.

(2) (a) The value of the purchased motor vehicle offered for registration and the

value of the vehicle offered in trade shall be attested to in a notarized

affidavit, provided that the retail price established by the notarized affidavit

shall not be less than fifty percent (50%) of the difference between the

applicable value of the purchased motor vehicle, as determined under the

method described in paragraph (b) of this subsection, and the trade-in value of

any motor vehicle offered in trade, as established by the reference manual.

(b) If a notarized affidavit is not available:

1. The retail price of the purchased motor vehicle offered for registration

shall be determined as follows:

a. Ninety percent (90%) of the manufacturer's suggested retail price

of the vehicle with all equipment and accessories, standard and

optional, and transportation charges; or

b. Eighty-one percent (81%) of the manufacturer's suggested retail

price of the vehicle with all equipment and accessories, standard

and optional, and transportation charges in the case of new trucks

of gross weight in excess of ten thousand (10,000) pounds; and

2. The value of the vehicle offered in trade shall be the trade -in value, as

established by the reference manual.

(3) (a) The trade-in allowance permitted by subsection (1) of this section shall be for

motor vehicles purchased between September 1, 2009 , and ending June 30,

2011. The total amount of reduced tax receipts related to the trade -in

allowance shall be subject to a cap of twenty -five million dollars

($25,000,000). The trade-in allowance shall be available on a first-come, first-

served basis. Im plementation and application of the cap shall be determined

by the department through the promulgation of an administrative regulation in

accordance with KRS Chapter 13A.

(b) The administrative regulation shall include:

1. A method for new vehicle dealers and county clerks to determine the

amount of the new vehicle credit cap at any point in time during the

year; and

2. A notification process to all county clerks when the new vehicle credit

cap has been reached during the year.

(4) When the cap established by subsection (3) of this section has been reached, or for

all motor vehicles purchased after June 30, 2011, and before July 1, 2014, the retail

price of all motor vehicles listed in subsection (1) of this section shall be:

(a) The total consideration give n, including any trade-in allowance, as attested in

a notarized affidavit; or

(b) If a notarized affidavit is not available, the retail price of the motor vehicle

offered for registration shall be determined as follows:

1. Ninety percent (90%) of the manuf acturer's suggested retail price of the

vehicle with all equipment and accessories, standard and optional, and

transportation charges; or

2. Eighty-one percent (81%) of the manufacturer's suggested retail price of

the vehicle with all equipment and accesso ries, standard and optional,

and transportation charges in the case of new trucks of gross weight in

excess of ten thousand (10,000) pounds.

The retail price shall not include that portion of the price of the vehicle attributable

to equipment or adaptive devices necessary to facilitate or accommodate an operator

or passenger with physical disabilities.