{"data":{"id":"us-ky/krs-136.188","jurisdiction":"us-ky","citation":"KRS 136.188","heading":"Annual fee on trucks, tractors, and buses operating partly within and","body":"partly outside Kentucky -- Fee to replace ad valorem tax -- Determination of\nvalue and fee -- Collection and distribution -- Protest.\n(1) Notwithstanding KRS 132.487, any tru ck, tractor, or bus which is operated on a\nroute or as part of a system that is partly within and partly outside Kentucky shall be\nsubject to an annual fee at the time the vehicle is registered with and the registration\nfee is paid to the Transportation Ca binet pursuant to KRS 186.020 and 186.050(3)\nand (13). The fee shall be imposed on the vehicle's owner or the owner's legal\ndesignee as of January 1 of each year. Such payment shall be made to the\nTransportation Cabinet either directly, in the case of a vehicle based in Kentucky, or\nindirectly, through the International Registration Plan, in the case of a vehicle based\noutside of Kentucky.\n(2) The fee imposed by subsection (1) of this section replaces the state and local ad\nvalorem property tax the Departme nt of Revenue previously imposed and centrally\ncollected against trucks, tractors, and buses operated on a route or as part of a\nsystem that is partly within and partly outside Kentucky. The fee imposed by\nsubsection (1) of this section shall not be constr ued as a fee imposed upon the\nregistration, operation, or use of the vehicles on public highways. The Department\nof Revenue shall use the following method for determining the rate for fixing the\nassessed value of the property and for determining the annual fee amount:\n(a) The Department of Revenue shall determine the assessed value on an annual\nbasis by multiplying the purchase price of the truck, tractor, or bus by a\ndepreciation value expressed as a percentage of the original cost from an\nauthoritative so urce that the Department of Revenue prescribes by\npromulgation of an administrative regulation;\n(b) The Department of Revenue shall determine an aggregate state and local rate\non an annual basis. The state rate shall be the weighted average commercial\nand industrial tangible personal property tax rate, and the local rate shall be\ndetermined using the method set forth in KRS 136.180(3) and (4);\n(c) The Department of Revenue shall determine the amount subject to the annual\nfee by multiplying the total assessed value of all vehicles by an apportionment\nfactor. The apportionment factor shall be determined as provided in KRS\n186.050(13)(a); and\n(d) The annual fee shall be determined by multiplying the amount subject to the\nannual fee by the rate determined in paragraph (b) of this subsection.\nThe Department of Revenue shall provide the Transportation Cabinet with the\ninformation needed to collect the fee.\n(3) The Transportation Cabinet shall forward the money it collects from the fee\nimposed by subsection (1) of this section to the Department of Revenue on a\nmonthly basis. The Department of Revenue shall divide and distribute the money\namong the state, counties, cities, urban-counties, charter counties, consolidated local\ngovernments, school districts, and special taxing districts in the same manner as the\nDepartment of Revenue divided and distributed the state and local ad valorem\nproperty tax previously imposed and centrally collected.\n(4) Pick-up and delivery vehicles operating from a terminal within this state and\nvehicles that do not leave the state in the normal course of business shall not be\nrequired to pay the fee imposed by subsection (1) of this section, but shall instead\nbe subject to the ad valorem tax under KRS 132.487.\n(5) Any person paying the fee imposed by subsection (1) of this section shall have sixty\n(60) days from the date the person is notified of the fee amount to protest. The\nprotest shall be filed with the Commonwealth of Kentucky, Department of\nRevenue, in accordance with the provisions of KRS 131.110. Notification by any\nstate's or Canadian province's or territory's registration authority of the amount due\nshall satisfy the notification requirement of KRS 131.110(1).\n(6) No protest or appeal shall delay the collection or payment of the fee imposed by\nsubsection (1) of this section. The fee amount due as determined in subsection (2)\nof this section shall be paid at the time of registration. If the fee is not paid, the\nCommonwealth of Kentucky, Transportation Cabinet, shall not register the ve hicle\nfor which registration is sought. Persons registering vehicles in other states or\nCanada shall be subject to requirements of those registration authorities.","path":["KRS Chapter 136"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47420","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:27Z","sha256":"380d383c3ac26bed56ee5121320b28d478e2a10cc20b4ae0ca3a9148b040667c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-136.1877","next":"us-ky/krs-136.190"},"notice":"GroundRules: Original legal text. Not legal advice."}