KRS § 136.188 — KY Code / Title XI / Chapter 136 / Section 136.188
136.188 Annual fee on trucks, tractors, and buses operating partly within and partly outside Kentucky -- Fee to replace ad valorem tax -- Determination of value and fee -- Collection and distribution -- Protest
Status: in_force

136.188 Annual fee on trucks, tractors, and buses operating partly within and

partly outside Kentucky -- Fee to replace ad valorem tax -- Determination of

value and fee -- Collection and distribution -- Protest.

(1) Notwithstanding KRS 132.487, any truck, tractor, or bus which is operated on a

route or as part of a system that is partly within and partly outside Kentucky shall be

subject to an annual fee at the time the vehicle is registered with and the registration

fee is paid to the Transportation Cabinet pursuant to KRS 186.020 and 186.050(3)

and (13). The fee shall be imposed on the vehicle's owner or the owner's legal

designee as of January 1 of each year. Such payment shall be made to the

Transportation Cabinet either directly, in the case of a vehicle based in Kentucky, or

indirectly, through the International Registration Plan, in the case of a vehicle based

outside of Kentucky.

(2) The fee imposed by subsection (1) of this section replaces the state and local ad

valorem property tax the Department of Revenue previously imposed and centrally

collected against trucks, tractors, and buses operated on a route or as part of a

system that is partly within and partly outside Kentucky. The fee imposed by

subsection (1) of this section shall not be construed as a fee imposed upon the

registration, operation, or use of the vehicles on public highways. The Department

of Revenue shall use the following method for determining the rate for fixing the

assessed value of the property and for determining the annual fee amount:

(a) The Department of Revenue shall determine the assessed value on an annual

basis by multiplying the purchase price of the truck, tractor, or bus by a

depreciation value expressed as a percentage of the original cost from an

authoritative source that the Department of Revenue prescribes by

promulgation of an administrative regulation;

(b) The Department of Revenue shall determine an aggregate state and local rate

on an annual basis. The state rate shall be the weighted average commercial

and industrial tangible personal property tax rate, and the local rate shall be

determined using the method set forth in KRS 136.180(3) and (4);

(c) The Department of Revenue shall determine the amount subject to the annual

fee by multiplying the total assessed value of all vehicles by an apportionment

factor. The apportionment factor shall be determined as provided in KRS

186.050(13)(a); and

(d) The annual fee shall be determined by multiplying the amount subject to the

annual fee by the rate determined in paragraph (b) of this subsection.

The Department of Revenue shall provide the Transportation Cabinet with the

information needed to collect the fee.

(3) The Transportation Cabinet shall forward the money it collects from the fee

imposed by subsection (1) of this section to the Department of Revenue on a

monthly basis. The Department of Revenue shall divide and distribute the money

among the state, counties, cities, urban-counties, charter counties, consolidated local

governments, school districts, and special taxing districts in the same manner as the

Department of Revenue divided and distributed the state and local ad valorem

property tax previously imposed and centrally collected.

(4) Pick-up and delivery vehicles operating from a terminal within this state and

vehicles that do not leave the state in the normal course of business shall not be

required to pay the fee imposed by subsection (1) of this section, but shall instead

be subject to the ad valorem tax under KRS 132.487.

(5) Any person paying the fee imposed by subsection (1) of this section shall have sixty

(60) days from the date the person is notified of the fee amount to protest. The

protest shall be filed with the Commonwealth of Kentucky, Department of

Revenue, in accordance with the provisions of KRS 131.110. Notification by any

state's or Canadian province's or territory's registration authority of the amount due

shall satisfy the notification requirement of KRS 131.110(1).

(6) No protest or appeal shall delay the collection or payment of the fee imposed by

subsection (1) of this section. The fee amount due as determined in subsection (2)

of this section shall be paid at the time of registration. If the fee is not paid, the

Commonwealth of Kentucky, Transportation Cabinet, shall not register the vehicle

for which registration is sought. Persons registering vehicles in other states or

Canada shall be subject to requirements of those registration authorities.