AN ACT relating to the proration of motor vehicle property taxes.

Amend KRS 134.810 to require the proration of motor vehicle property taxes when a motor vehicle is transferred between private parties; set requirements for the proration; require any overpayments created from the proration requirements to be refunded without written request; apply to motor vehicle transfers occurring on or after January 1, 2027.

Introduced: March 4, 2026

Last action: March 11, 2026

To Appropriations & Revenue (H)

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This bill would change how property taxes are calculated when a vehicle is sold from one private party to another. Instead of the full year's tax applying regardless of when the sale happens, the tax would be divided based on how much of the year each owner held the vehicle. If a seller overpays as a result, they would automatically receive a refund without having to file a written request. The changes would apply to vehicle transfers on or after January 1, 2027. Who it may affect: Kentuckians who buy or sell used vehicles through private sales.

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