KRS 138.470 — Exemptions from tax

(2) Motor vehicles titled or registered to institutions of purely public charity and
institutions of education not used or employed for gain by any person or
corporation;
(3) Motor vehicles which have been previously titled in Kentucky on or after July 1,
2005, or previously registered and titled in any state or by the federal
government when being sold or transferred to licensed motor vehicle dealers
for resale. The motor vehicles shall not be leased, rented, or loaned to any
person and shall be held for resale only;
(4) Motor vehicles sold by or transferred from dealers registered and licensed in
compliance with the provisions of KRS 186.070 and KRS 190.010 to 190.080
to members of the Armed Forces on duty in this Commonwealth under orders
from the United States government;
(5) Commercial motor vehicles, excluding passenger vehicles having a seating
capacity for nine (9) persons or less, owned by nonresident owners and used
primarily in interstate commerce and based in a state other than Kentucky
which are required to be registered in Kentucky by reason of operational
requirements or fleet proration agreements and are registered pursuant to KRS
186.145;
(6) Motor vehicles titled in Kentucky on or after July 1, 2005, or previously
registered in Kentucky, transferred between husband and wife, parent and
child, stepparent and stepchild, or grandparent and grandchild;
(7) Motor vehicles transferred when a business changes its name and no other
transaction has taken place or an individual changes his or her name;
(8) Motor vehicles transferred to a corporation from a proprietorship or limited
liability company, to a limited liability company from a corporation or
proprietorship, or from a corporation or limited liability company to a
proprietorship, within six (6) months from the time that the business is
incorporated, organized, or dissolved, if the transferor and the transferee are
the same business entity except for a change in legal form;
(9) Motor vehicles transferred by will, court order, or under the statutes covering
descent and distribution of property, if the vehicles were titled in Kentucky on or
after July 1, 2005, or previously registered in Kentucky;
(10)Motor vehicles transferred between a subsidiary corporation and its parent
corporation if there is no consideration, or nominal consideration, or in sole
consideration of the cancellation or surrender of stock;
(11)Motor vehicles transferred between a limited liability company and any of its
members, if there is no consideration, or nominal consideration, or in sole
consideration of the cancellation or surrender of stock;
(12)The interest of a partner in a motor vehicle when other interests are transferred
to him;
(13)Motor vehicles repossessed by a secured party who has a security interest in
effect at the time of repossession and a repossession affidavit as required by
KRS 186.045(6). The repossessor shall hold the vehicle for resale only and not
for personal use, unless he has previously paid the motor vehicle usage tax on
the vehicle;
(14)Motor vehicles transferred to an insurance company to settle a claim. These
vehicles shall be junked or held for resale only;
(15)Motor carriers operating under a charter bus certificate issued by the
Transportation Cabinet under KRS Chapter 281;
(16)(a) 1. Motor vehicles registered under KRS 186.050 that have a declared
gross vehicle weight with any towed unit of forty-four thousand and
one (44,001) pounds or greater; and
2. Farm trucks registered under KRS 186.050(4) that have a declared
gross vehicle weight with any towed unit of forty-four thousand and
one (44,001) pounds or greater.
(b) To be eligible for the exemption established in paragraph (a) of this
subsection, motor vehicles shall be registered at the appropriate range for
the declared gross weight of the vehicle established in KRS 186.050(3)(b)
and shall be prohibited from registering at a higher weight range. If a
motor vehicle is initially registered in one (1) declared gross weight range
and subsequently is registered at a declared gross weight range lower
than forty-four thousand and one (44,001) pounds, the person registering
the vehicle shall be required to pay the county clerk the usage tax due on
the vehicle unless the person can provide written proof to the clerk that
the tax has been previously paid;
(17)Motor vehicles transferred to a trustee to be held in trust, or from a trustee to a
beneficiary of the trust, if a direct transfer from the grantor of the trust to all
individual beneficiaries of the trust would have qualified for an exemption from
the tax pursuant to subsection (6) or (9) of this section;
(18)Motor vehicles transferred to a trustee to be held in trust, if the grantor of the
trust is a natural person and is treated as the owner of any portion of the trust
for federal income tax purposes under the provisions of 26 U.S.C. secs. 671 to
679;
(19)Motor vehicles transferred from a trustee of a trust to another person if:
(a) The grantor of the trust is a natural person and is treated as the owner of
any portion of the trust for federal income tax purposes under the
provisions of 26 U.S.C. secs. 671 to 679; and
(b) A direct transfer from the grantor of the trust to the person would have
qualified for an exemption from the tax pursuant to subsection (6) or (9) of
this section; and
(20)Motor vehicles under a manufacturer's statement of origin in possession of a
licensed new motor vehicle dealer that are titled and transferred to a licensed
used motor vehicle dealer and held for sale.