Out of State Vehicle Purchase

When a customer acquires a vehicle with an out of state title from an individual or an out of state title or a Certificate of Origin (C of O) from an out of state dealership, the customer is required to title and register the vehicle in Kentucky within 15 days of purchase.                                                                              

To title/register the vehicle in Kentucky, provide the following:

– Original title or Certificate of Origin (C of O)

– Odometer disclosure

– Picture Identification

– Social Security Number, Driver’s License Number, ITIN Number, Visa Number or Federal Identification Number

– Proof of Kentucky liability insurance

– Certified vehicle inspection

Out of State Purchase fees:

– Title Application Fee: $9.00                                                                                                            

– Usage Tax: 6% of current months NADA clean retail value or sales price if correct forms are completed TC 96-182 (see more below)

– Plate Fee: $25.00 (for one year, birth month to birth month)

– Lien Release: $22.00 if lien is filed within 30 days of the date on the title lien statement $24.00 if lien is filed after 30 days of the date on the title lien statement

Usage Tax Fees:

  • – In order for tax to be based off the sale price of the vehicle you will need:
  • – Properly completed Application for Kentucky Certificate of Title/Registration (TC 96-182)
    • – Form must have completed:
    • – Sale Price
    • – Seller’s Signature **if more than one owner both must sign unless it is title as “or”
    • – Notarization **Notary must sign as well as use a stamp or a seal

Usage tax collected will be:

6% of the sale price as disclosed on a properly completed Affidavit of Total Consideration (TC 96-182) or Minimum taxable value (half of the clean trade in value) applies to used vehicles only. No minimum taxable value exists for brand new vehicles

Without the above mentioned form usage tax will be figured the following ways:

– 6% of the current month’s NADA Clean Retail Value

– If “0.00” is the sale price, then the tax is based off of 6% of the NADA current month’s retail value of the vehicle. If “gift” is the sale price, then tax is based off of    6% of the NADA current months trade in value of the vehicle. 

– 90% of the Manufacturer’s Suggested Retail Price (MSRP) or Window Sticker

Certain states allow their dealerships to collect road usage tax from Kentucky residents.

States allowed to collect tax on KY residents are:

Arizona

California

Florida (form DR-123)

Indiana (form ST-108)

Massachusetts (form ST-7R)

Michigan (form RD-108)

South Carolina (form ST-385)

Washington

Ohio issues titles to non-residents. However, Ohio dealerships do not collect road usage tax from non-residents. Therefore a properly completed TC96-182 will be needed to process the Ohio title based on the sale price.