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Information Guide (PDF)
Secretary Greg Thomas
Q: Do leased or rented vehicles have a sales tax?
A: Vehicles in the U-Drive-It program generate usage tax, not sales tax.
Q: Who pays the property tax on a leased or rented vehicle?
A: This would be part of your contract. The leasing company is responsible to the state of Kentucky, however, they have a right to pass it on to their customers.
Q: Who is the permit holder for a leased or rented vehicle?
A: Leasing companies are the permit holders and should give you a permit number for the DMV office in the county where you reside, to register and title vehicles
Q: What is a U-Drive-It permit number?
A: It is a four digit number assigned to the leasing company or rental company to pay usage tax on lease or rental vehicle on a month to month basis to the Department of Transportation Division of Motor Carriers.
Q: Who needs a U-Drive-It permit number?
A: Leasing or rental companies that lease or rent vehicles to customers in the state of Kentucky.
Q: Where do you get a U-Drive-It number?
A: The U-Drive-It number is assigned to the leasing or rental company through the Transportation Cabinet Division of Motor Carriers after application has been approved. The lessee needs to contact their leasing company to get the UD Number.
Q: What is the U-Drive-It fee and who pays the fee?
A: There are two U-Drive-It fees. The first fee is the fee when you first register your vehicle at the clerk’s office under the U-Drive-It program. It is based on the month of incorporation for the leasing company and the month you register the vehicle. The second fee is the renewal fee every year. The renewal fee is $15.
Q: Do U-Drive-It vehicles have to be inspected?
A: No. They are excluded from inspection under KRS186A.115 (2) part C. Motor Vehicles operated by a motor carrier under a non-negotiable certificate or permit issued by the Department of Vehicle Regulation.
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A. Application Packet
B. Tax Compliance and Audit Assistance
C. TC 95-309 U-Drive-It Renewal Application
D. Sales & Use Tax
E. Property Tax
F. Business - Motor Vehicle Usage Tax
G. Individual - Motor Vehicle Usage Tax
H: UDI Audit Assistance Manual
1. What do I need?
2. Online Services
3. Tax Forms (KYU, KIT, IFTA)
4. Commercial Motor Vehicle Credentials
5. International Registration Plan (IRP)
8. Walk-in customers/One Stop Shop
9. Forms and Applications
11. One Stop Shop
12. en Español
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