Bill > HB891

This bill amends existing Kentucky law (KRS 134.810) to require that motor vehicle property taxes be prorated, or divided, between the seller (transferor) and the buyer (transferee) when a vehicle is sold between private parties. Specifically, the seller will be responsible for the taxes covering the months they owned the vehicle up to the sale date, and the buyer will be responsible for the taxes from the sale date onward. The bill clarifies that if a sale happens before the 15th of a month, that month counts towards the buyer's tax responsibility, and if it happens on or after the 15th, it counts towards the seller's. Importantly, any overpayments resulting from this proration will be automatically refunded to the taxpayer without them needing to request it, and these changes will take effect for vehicle transfers occurring on or after January 1, 2027.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/hb891.html