Kentucky used truck

TeamHutch · Apr 3, 2016

I have a friend who bought a used truck in another state. He is trying to do a title transfer in KY but the are trying to say he owes 4K in sales tax before he can transfer the title. Our understanding is that there is no sales tax on commercial vehicles, but rather a use tax that will have to be paid. Does he need to apply for an IRP first or what? Any help with this process would be much appreciated.

BigStickJr · Apr 3, 2016

I'm not an expert but believe he'll have to show proof it'll be used in inter-state commerce.
His authority or a lease to an inter-state carrier.
If he'll use it locally then he probably owes the tax.

TeamHutch · Apr 3, 2016

Ok, he plans on signing on with fedex cc. It is a straight truck I forgot to mention.

TeamHutch · Apr 3, 2016

Doesn't he need to apply for a irp cab card? To be able to transfer title?

BigStickJr · Apr 3, 2016

What came first, the chicken or the egg ?

Probably can't get an IRP w/o a title.
I would think the Fed would have the answer.
Don't most people just let the Fed get the IRP plates for them ?

Mudduck · Apr 3, 2016

What I have been told so far is that I have to obtain an apportioned certificate from my local county clerks office and take to the capital (Frankfort) to obtain my base plate and cab card. Before I can obtain the certificate my county clerk is trying to make me pay sales tax of 4k on an interstate apportioned truck. Just don't make since to me.

BigStickJr · Apr 3, 2016

If you bought the truck off a dealer, (Peterson KW maybe), they'll give you the answers.
This is more a van site now.

Mudduck · Apr 3, 2016

They also said there is no sales tax on commercial vehicles.

BigStickJr · Apr 3, 2016

I would guess the dealer, or someone in Frankfort can give you an answer.
The good news is you do not owe sales tax.
They'll tell you how to document it.
The B of Sale probably says sales tax exempt.

Lawrence · Apr 4, 2016

What state was the truck purchased in?

Mudduck · Apr 4, 2016

Kentucky buy previously licensed in Tennessee.

Tobster317 · Apr 4, 2016

There is sale tax in some states. I know in Florida there is. Did you know for sure that KY is not one of them?

BigStickJr · Apr 4, 2016

Do you KNOW there is sales tax in Florida or did you pay sales tax in Florida because you really didn't know the law ?

Where's Dave KC, our resident Floridian ?

coalminer · Apr 4, 2016

BigStickJr said:
Do you KNOW there is sales tax in Florida or did you pay sales tax in Florida because you really didn't know the law ?

Where's Dave KC, our resident Floridian ?

There is no income tax in Florida so they get you on everything else, a title is $90 and a new car registration has a $225 initial registration fee. I learned my lesson about Florida and re registered my commercial vehicles in Ohio....

coalminer · Apr 4, 2016

Well after searching because I'm bored.... Check out page 62 of this pdf

https://www.tn.gov/assets/entities/revenue/attachments/salesanduse.pdf

No sales tax for Tennessee on the truck.

Kentucky is hard to tell, could not find an exemption on their site directly but saw references to it on other sites.

BigStickJr · Apr 4, 2016

The reason few, if any , states charge sales tax on interstate trucks.
If your interstate company was in state A and they tried to charge you sales tax, you'd simply locate in a more tax friendly state.
If a dealer had to charge more taxes to sell to you in that state you'd easily buy out of one of your other locations.
People buying cars aren't dealing with large, multi-vehicle transactions. To go to another state to buy often may not reap the benefits to be worth the effort.

Tobster317 · Apr 4, 2016

BigStickJr said:
Do you KNOW there is sales tax in Florida or did you pay sales tax in Florida because you really didn't know the law ?

Where's Dave KC, our resident Floridian ?

There are, I believe 4 state that charge sales tax on commercial vehicles. Florida is one of them.

jjoerger · Apr 4, 2016

It doesn't matter what state you buy it in. If you title it in Florida you have to pay the sales tax. If you want to title it in another state you have to become a resident or move your business there.