When you rent a car, the dealer always retains ownership. You pay personal property taxes on the vehicle, unless otherwise stated in your lease. You can still get a property tax bill even if you have filed for bankruptcy. Motor vehicle property taxes are not excusable in the event of bankruptcy if the tax has been outstanding for less than one (1) year at the time the bankruptcy application is filed. If you declare bankruptcy and owe taxes to the Ministry of Revenue (DOR), you must specify DOR as your creditor in your bankruptcy filing. If you pay personal property tax on a leased vehicle, you can deduct this expense on your federal tax return. The Internal Revenue Service requires that these deductible “ad valorem” taxes be based on the value of the car and be levied by the state each year. You must indicate the deductions in Schedule A to make this depreciation. You cannot take advantage of the standard deduction as well as the personal property tax deduction. The IRS also allows the deduction of registration fees based on the value of the car. User Tax – A motor vehicle use tax of six percent (6%) is levied on the “retail price” of vehicles transported within Kentucky. For used vehicles, the use tax is 6% of the current average retail trade, as indicated in the used car driver, or 6% of the total consideration paid. In the case of second-hand vehicles, the total consideration paid is the total amount indicated, net of trading allowances, if any.
The trade-in allowance only applies to used vehicles and the exchanged vehicle must be previously registered in Kentucky. In the case of vehicles brought to Kentucky by new residents, the tax value is the average trade-in value, as indicated in the official used car driver`s license. This can be a one-time annual payment or a monthly payment you make for the lease. If you need to register the car, you may need a statement or receipt from the dealer stating that personal property taxes have been paid. A dealer who rents a vehicle retains ownership. The terms of the lease decide which party is responsible for the personal property tax. In all cases, the tax advisor charges the taxes to the dealer and the dealer pays. If the lease agreement states that you are responsible for these taxes, you will receive an invoice from the dealer.
Some states charge “ad valorem” taxes based on the value of the property you own. This could include a car, which is a relatively valuable property in most households. If personal wealth tax is in effect, you must file a tax return and declare all non-exempt property and its value. The tax is levied as a flat-rate percentage of the value and varies by county. For example, in Alexandria, Virginia, a “car tax” is $5 per $100 of the estimated value, while in Fairfax County, the assessment is $4.57 per $100. An active military member does not owe a Kentucky property tax if he is in Kentucky by military order and does not declare his OR Her Kentucky AS A State of Residence or a Taxable State. If a vehicle is transferred to that vehicle within one year prior to the payment of property taxes, a notice of the tax due will be sent to the person who owned the vehicle on January 1 of the year within ten (10) business days of the date of transfer or notification of the transfer. (KRS 134.805(5)(b)) The notice of taxes payable informs the person of the amount of property tax still due on the vehicle. Property tax assessments and procedures are the same for motorboats as for motor vehicles. (132,488 KRS) For the definition of a motorboat, see KRS 235.010. Vehicles are considered “historic” if they are twenty-five (25) years of age or older and are primarily used for exhibitions in shows, parades, tours and other special purposes, but not for general transportation.
Historic vehicles are registered and registered by the Kentucky Transportation Cabinet. (KRS 186 043(2)(3)) If you need to declare personal property for tax purposes, never include vehicles (or other property) that you rent. The tax administration will always charge the party that retains ownership of the vehicle. If you declare and pay yourself, you will always receive an invoice from the merchant; You`ll have to pay for it and then ask the state for a refund – which could take a lot of time, effort and paperwork. In states that levy a personal wealth tax, you can pay a percentage of the market value of your car to the Treasury. There isn`t much room for vehicles because the state already has the registration information, including the year, make, and model of your car. However, if you rent, you are not the rightful owner and you cannot be responsible. It all depends on the lease that the dealer offers. An active military member whose Leave and Earnings Statement (SLA) indicates that Kentucky is the state of residence or taxable state owes Kentucky property tax, whether or not he or she is a Kentucky resident. A motor vehicle use tax of six percent (6%) is levied on the “retail price” of vehicles first registered in Kentucky. For new vehicles, the “retail price” is the total consideration (the consideration is the sum of the money financed or the amount financed and the value of a given vehicle in payment.) or 90% of the manufacturer`s recommended retail price (MSRP), including any additional equipment and destination fees.
For all vehicles purchased outside the state, the “retail price” is based on the total consideration (the total status of the consideration on the VTR form must be completed and VTR signed and notarized by the dealer or individual in the state)) or the average retail value as reported in the NADA (National Auto Dealers Association). Official used car driver. An out-of-state purchase of a used car now allows for trade-in credit. Property tax – The owner of a vehicle from January 1 of each tax year is responsible for the tax for that year. If the property tax has not been paid at the time of transfer, the seller is responsible for the tax. To avoid an overdue tax, it is recommended that the seller pay taxes at the time of transfer. If this is not the case, the seller will receive a notification from the Kentucky Revenue Cabinet of the tax due. Certain trailers used on roads or in systems located partly inside and partly outside Kentucky may be exempt from national and local ad valorem property tax. To learn more, including eligible trailers and documentation to submit using the forms below, read the DOR guide here. Social Security Number for each party that appears on the title or federal identification number of Company A (Form VTR # TC-96-182): If the title issued before February 2000 must be completed, signed by all registered owners and notarized.
Individuals who have a power of attorney for the owner(s) can sign, but a copy of the power of attorney must be submitted with the application. If county clerks notarize signatures, identification must be presented. Notice titles that contain AND (instead of OR) between the names of the owners require the signature of all owners and/or require both to sign and be notarized. If you no longer have a vehicle that you previously owned, you will need to surrender the title to the county clerk to pay future taxes on that vehicle. In case you do not have the title of the vehicle, you must apply for a double title from the transport office, and then give this double title to the clerk of the county. A person who purchases a vehicle or brings a vehicle from another state must hold title to the vehicle(s) within 15 days. If the owner of a motor vehicle does not reside in Kentucky, the vehicle must be registered with the clerk of the county where the motor vehicle is primarily used (KRS 186.020). .
