KRS 186A.145: Processing prohibited when property tax account delinquent --

Exceptions -- Responsibility for ad valorem taxes.

(1) Except as provided in subsections (2) and (3) of this section, a county clerk shall

not process an application for Kentu cky title and registration from or to any

Kentucky resident who has a delinquent motor vehicle ad valorem property tax

account.

(2) This section shall not apply to transactions involving:

(a) Licensed Kentucky motor vehicle dealers;

(b) A person who is eng aged in the business of storing or towing motor vehicles,

applying for a new title under KRS 376.275(1)(c);

(c) Individuals when the delinquent motor vehicle ad valorem property taxes are

owed by a previous owner who is not a party to the transaction; or

(d) A secured party applying for a repossession title under KRS 186.045(6).

(3) (a) For any vehicle obtained as the result of a claim on a motor vehicle insurance

policy, an insurer and its agent shall not be responsible for the payment of any

delinquent mo tor vehicle ad valorem property taxes owed by any previous

owner, when:

1. Applying for a regular or salvage title; or

2. Transferring ownership of the vehicle to another party.

(b) The owner of a motor vehicle that was transferred to an insurer or its agent

under paragraph (a) of this subsection shall remain responsible for any

delinquent motor vehicle ad valorem property taxes owed prior to the transfer.

(4) An insurer shall not be exempt from any motor vehicle ad valorem property taxes

owed on any vehicle that it owns:

(a) As a part of its business operations; or

(b) On January 1, that was obtained as the result of a claim on a motor vehicle

insurance policy.