New Motor Vehicle Trade-in Allowance for Motor Vehicle Usage Tax

Effective September 1, 2009

House Bill 3 enacted in the 2009 Special Legislative Session modified KRS 138.450 and created a new section of KRS 138.455 - 138.470 to temporarily provide a trade-in allowance for the Motor Vehicle Usage Tax calculation for new vehicle purchases, beginning September 1, 2009 and ending August 31, 2010 or earlier if the accumulated total of "trade-in credits" reduces the Motor Vehicle Usage Tax by the maximum amount authorized. The trade-in allowance is available on a first-come, first-served basis.

When the Motor Vehicle Usage Tax credit total displayed below reaches the maximum cap of $25 million, the trade-in credit allowance on new vehicles will cease. This information is updated periodically throughout each business day depending on the volume of transactions processed.