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Old 03-28-2013, 04:07 PM
 
2,371 posts, read 4,987,477 times
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I just read that KY levies a 6% vehicle use tax on cars coming into the state for the first time. The website also stated that the NADA guide is used for valuations (the trade-in value for used cars). I just looked up the value of my 2008 civic and "clean" trade-in value is listed as 10,800, making the KY tax a whopping $648! The revenue website also states that it can grant credit for "substantially identical" taxes paid in another state.

My question is whether the 6% sales tax I paid on my new car in 2008 in another state would qualify as identical to the use tax in KY if I moved there in 2013. The website doesn't mention sales taxes specifically, and the state where I live now does not levy a vehicle use tax.

Does anyone have thoughts? Thanks in advance.

2008 Honda Civic Sdn Sedan 4D LX Prices, Values & Civic Sdn Sedan 4D LX Price Specs | NADAguides

Kentucky: Department of Revenue - Motor Vehicle Taxing Methods

Another question is how much KY taxes cars annually after the initial vehicle use tax. I didn't see anything on the website to answer this. I read that 6% vehicle tax as a one time tax when cars change hands or vehicles are registered from out of state. I certainly hope it's not a 6% tax every year. Thanks!

Last edited by xz2y; 03-28-2013 at 05:21 PM..
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Old 03-29-2013, 05:48 PM
 
3,463 posts, read 4,794,277 times
Reputation: 7150
Quote:
Originally Posted by xz2y View Post
I just read that KY levies a 6% vehicle use tax on cars coming into the state for the first time. The website also stated that the NADA guide is used for valuations (the trade-in value for used cars). I just looked up the value of my 2008 civic and "clean" trade-in value is listed as 10,800, making the KY tax a whopping $648! The revenue website also states that it can grant credit for "substantially identical" taxes paid in another state.

My question is whether the 6% sales tax I paid on my new car in 2008 in another state would qualify as identical to the use tax in KY if I moved there in 2013. The website doesn't mention sales taxes specifically, and the state where I live now does not levy a vehicle use tax.

Does anyone have thoughts? Thanks in advance.

2008 Honda Civic Sdn Sedan 4D LX Prices, Values & Civic Sdn Sedan 4D LX Price Specs | NADAguides

Kentucky: Department of Revenue - Motor Vehicle Taxing Methods

Another question is how much KY taxes cars annually after the initial vehicle use tax. I didn't see anything on the website to answer this. I read that 6% vehicle tax as a one time tax when cars change hands or vehicles are registered from out of state. I certainly hope it's not a 6% tax every year. Thanks!
Im pretty sure this is the way a few states work.
I dont get it either. If you show a clean title and the car had previous tags, why do you need to keep repaying sales tax? I have a car the sits for this very reason. Im not going to pay 500.00 or so to tag a car that I only put 30 miles a year on.
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Old 02-09-2015, 07:46 AM
 
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The Motor Vehicle Usage Tax in Kentucky is a poor tax that Kentucky Republicans forced on the residents of the state so they could lower the property taxes of landowners. Since many of the poorest people in the state rent their homes, the tax revenue was previously collected from the landlord, but that was unacceptable to the lobbiest of the rich landowners in the state because they thought it was better that their property tax be lowered. Now we have our police officers acting as tax collectors when they are forced to write citations for expired registration.
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Old 02-09-2015, 09:41 AM
 
Location: New Albany, Indiana (Greater Louisville)
10,381 posts, read 21,918,028 times
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It is about 1% per year to pay registration. If you drive a 10 year old Camry like me that's not too bad. If you drive a new Porsche it's a ton of money
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Old 02-09-2015, 05:43 PM
 
Location: NOVA
4,521 posts, read 5,484,844 times
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The vehicle tax is a flat tax, just as census stated. The more your vehicle is worth, the higher the tax. Most people would agree that this is good calculation with the estimate that those owning a $50k would pay more than a vehicle worth $5k. This tax isn't disproportionate so most people accept the Kentucky vehicle tax.
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Old 02-11-2015, 08:27 PM
 
Location: Covington KY
123 posts, read 144,599 times
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Wow, so I will have to pay the tax to get my tags? Is that how it works?
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Old 02-12-2015, 07:40 AM
 
Location: New Albany, Indiana (Greater Louisville)
10,381 posts, read 21,918,028 times
Reputation: 10084
If you move from out of state you only pay the part of that year that you moved. If you moved in June you'd pay half for example.

I don't think the up front one is 6%. I believe it's always around 1%. My wife moved from Indiana in April and it wasn't outrageous. You do have to get your car inspected at a clerk's office which is an adventure because the inspector leaves at 4 pm most days.
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Old 02-12-2015, 07:58 AM
 
Location: Covington KY
123 posts, read 144,599 times
Reputation: 125
Interesting, so is the inspection for a year? Or is that just a one time thing? I did pull up the KY DMV site a while back but it was a bit confusing to me.

On a separate note, KY has a state tax, correct? How does that work? Do you pay at the end of the year during tax season? How much? During my recent visit, we enjoyed the 4% sales tax
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Old 09-15-2017, 07:30 PM
 
1 posts, read 6,554 times
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First of all, our state is in Republican hands for the first time in a generation, so this is a democrat tax (as almost all taxes are). And, the vehicle inspection is a one time thing. And, in Kentucky, all public roads are paved (no dirt roads) and in good condition (especially compared to all three states to our direct north). And, if you don't like the way our state does taxes, stay in the wonderful north where almost everything is taxed higher.
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