AN ACT relating to sales and use taxes.

Amend KRS 139.010 to exclude document fees, lien fees, and insurance passed through from the manufacturer from the definition of "gross receipts"; EFFECTIVE July 1, 2025.

Introduced: February 18, 2025

Last action: February 21, 2025

To Appropriations & Revenue (H)

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This bill would change how Kentucky calculates the sales tax on certain vehicle-related transactions by removing document fees, lien fees, and manufacturer pass-through insurance costs from the amount that gets taxed. In other words, buyers would not pay sales tax on those specific charges. The change would take effect July 1, 2025. Who it may affect: Kentuckians purchasing vehicles, particularly those financing a purchase or dealing with manufacturer-included insurance costs.

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