KRS 138.4602 — Determination of motor vehicle retail price for sales on or after September 1, 2009, and before July 1, 2014

(1) (a) Effective for sales on or after September 1, 2009, and before July 1, 2014, of:
1. New motor vehicles;
2. Dealer demonstrator vehicles;
3. Previous model year motor vehicles; and
4. U-Drive-It motor vehicles that have been transferred within one hundred
eighty (180) days of being registered as a U -Drive-It and that have less
than five thousand (5,000) miles;
the retail price shall b e determined by reducing the amount of total
consideration given by the trade -in allowance of any motor vehicle traded in
by the buyer. The value of the purchased motor vehicle and the amount of the
trade-in allowance shall be determined as provided in sub section (2) of this
section, and the availability of the trade -in allowance shall be subject to
subsection (3) of this section.
(b) The retail price shall not include that portion of the price of the vehicle
attributable to equipment or adaptive devices ne cessary to facilitate or
accommodate an operator or passenger with physical disabilities.
(2) (a) The value of the purchased motor vehicle offered for registration and the
value of the vehicle offered in trade shall be attested to in a notarized
affidavit, provided that the retail price established by the notarized affidavit
shall not be less than fifty percent (50%) of the difference between the
applicable value of the purchased motor vehicle, as determined under the
method described in paragraph (b) of this subsection, and the trade-in value of
any motor vehicle offered in trade, as established by the reference manual.
(b) If a notarized affidavit is not available:
1. The retail price of the purchased motor vehicle offered for registration
shall be determined as follows:
a. Ninety percent (90%) of the manufacturer's suggested retail price
of the vehicle with all equipment and accessories, standard and
optional, and transportation charges; or
b. Eighty-one percent (81%) of the manufacturer's suggested retail
price of the vehicle with all equipment and accessories, standard
and optional, and transportation charges in the case of new trucks
of gross weight in excess of ten thousand (10,000) pounds; and
2. The value of the vehicle offered in trade shall be the trade -in value, as
established by the reference manual.
(3) (a) The trade-in allowance permitted by subsection (1) of this section shall be for
motor vehicles purchased between September 1, 2009 , and ending June 30,
2011. The total amount of reduced tax receipts related to the trade -in
allowance shall be subject to a cap of twenty -five million dollars
($25,000,000). The trade-in allowance shall be available on a first-come, first-
served basis. Im plementation and application of the cap shall be determined
by the department through the promulgation of an administrative regulation in
accordance with KRS Chapter 13A.
(b) The administrative regulation shall include:
1. A method for new vehicle dealers and county clerks to determine the
amount of the new vehicle credit cap at any point in time during the
year; and
2. A notification process to all county clerks when the new vehicle credit
cap has been reached during the year.
(4) When the cap established by subsection (3) of this section has been reached, or for
all motor vehicles purchased after June 30, 2011, and before July 1, 2014, the retail
price of all motor vehicles listed in subsection (1) of this section shall be:
(a) The total consideration give n, including any trade-in allowance, as attested in
a notarized affidavit; or
(b) If a notarized affidavit is not available, the retail price of the motor vehicle
offered for registration shall be determined as follows:
1. Ninety percent (90%) of the manuf acturer's suggested retail price of the
vehicle with all equipment and accessories, standard and optional, and
transportation charges; or
2. Eighty-one percent (81%) of the manufacturer's suggested retail price of
the vehicle with all equipment and accesso ries, standard and optional,
and transportation charges in the case of new trucks of gross weight in
excess of ten thousand (10,000) pounds.
The retail price shall not include that portion of the price of the vehicle attributable
to equipment or adaptive devices necessary to facilitate or accommodate an operator
or passenger with physical disabilities.