{"data":{"id":"us-ky/krs-138.4605","jurisdiction":"us-ky","citation":"KRS 138.4605","heading":"Taxes on loaner or rental motor vehicles.","body":"(1) A motor vehicle dealer who operates a service or repair component in his dealership\nmay register a motor vehicle to be used exclusively as a loaner or rental motor\nvehicle to the customers of this service or repair department. The dealer may pay\nusage tax on the loaner or rental motor vehicle as provided in KRS 138.460, or,\nsubject to the provisions of this section, may pay a usage tax of twenty -five dollars\n($25) per month on the loaner or rental motor vehicle.\n(2) A dealer shall pay the usage tax on a loa ner or rental motor vehicle in the manner\nprovided by KRS 138.460 unless the dealer shows to the satisfaction of the\nDepartment of Revenue that he is regularly engaged in the servicing or repair of\nmotor vehicles and loans or rents the loaner or rental mot or vehicle to a retail\ncustomer while the customer's motor vehicle is at the dealership for repair or\nservice.\n(3) For a dealer to be eligible to pay the usage tax on a loaner or rental motor vehicle\nunder this section, the dealer shall identify the motor vehicle as a loaner or rental\nmotor vehicle to the Department of Revenue and shall maintain records, as required\nby the Department of Revenue, which show all uses of the loaner or rental motor\nvehicle.\n(4) The tax due under subsection (1) of this section s hall be remitted to the Department\nof Revenue monthly on forms prescribed by and in accordance with administrative\nregulations promulgated by the department.\n(5) Failure of a motor vehicle dealer to remit the taxes applicable to a loaner or rental\nmotor ve hicle under this section shall be sufficient cause for the Department of\nRevenue to revoke the authority to use that motor vehicle as a loaner or rental motor\nvehicle and cause the usage tax on that motor vehicle to be due and payable in\naccordance with KRS 138.460 on the retail price of that motor vehicle when it was\nfirst registered as a loaner or rental motor vehicle.\n(6) A motor vehicle no longer covered under the loaner permit program shall be taxed\nin the same manner as motor vehicles under KRS 138.450(12) or (16).","path":["KRS Chapter 138"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=28751","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:30Z","sha256":"901cb986de1523dbdf88ec3094b92eefbf1ad05754276c81f699cc648877cf91","source_id":"us-ky","stale":false,"prev":"us-ky/krs-138.4603","next":"us-ky/krs-138.462"},"notice":"GroundRules: Original legal text. Not legal advice."}