Tax & Accounting News

Kentucky Imposes State Property Tax on Motor Vehicle Inventory

Indirect Tax, News, ONESOURCE, ONESOURCE Property Tax, Software, State Reporting, Tax Information Reporting March 27, 2013

Kentucky has announced that for any motor vehicle held for sale in the inventory of a licensed motor vehicle dealer, whether or not that vehicle is titled and registered in Kentucky and whether or not ownership has been transferred to the dealer, the state shall impose a property tax of 5¢ for every $100 of value on said motor vehicles.  The legislation also clarifies that said motor vehicles are not subject to local property taxation nor are they to be taxed as motor vehicles.  This new law goes into effect “90 days after adjournment”, which was March 22, 2013.