# KRS § 138.470: 138.470 Exemptions from tax > Kentucky · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.470 ## Section - **Citation:** KRS § 138.470 - **Heading:** 138.470 Exemptions from tax - **Jurisdiction:** Kentucky - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** KY Code / Title XI / Chapter 138 / Section 138.470 ## Text 138.470 Exemptions from tax. (Effective July 1, 2021) There is expressly exempted from the tax imposed by KRS 138.460: (1) (a) Motor vehicles titled or registered to the United States, or to the Commonwealth of Kentucky or any of its political subdivisions; and (b) The gross rental or lease charges for the rental or lease of a motor vehicle paid by the United States, or the Commonwealth of Kentucky or any of its political subdivisions; (2) Motor vehicles titled or registered to institutions of purely public charity and institutions of education not used or employed for gain by any person or corporation; (3) Motor vehicles which have been previously titled in Kentucky on or after July 1, 2005, or previously registered and titled in any state or by the federal government when being sold or transferred to licensed motor vehicle dealers for resale. The motor vehicles shall not be leased, rented, or loaned to any person and shall be held for resale only; (4) Motor vehicles sold by or transferred from dealers registered and licensed in compliance with the provisions of KRS 186.070 and KRS 190.010 to 190.080 to members of the Armed Forces on duty in this Commonwealth under orders from the United States government; (5) Commercial motor vehicles, excluding passenger vehicles having a seating capacity for nine (9) persons or less, owned by nonresident owners and used primarily in interstate commerce and based in a state other than Kentucky which are required to be registered in Kentucky by reason of operational requirements or fleet proration agreements and are registered pursuant to KRS 186.145; (6) Motor vehicles titled in Kentucky on or after July 1, 2005, or previously registered in Kentucky, transferred between husband and wife, parent and child, stepparent and stepchild, or grandparent and grandchild; (7) Motor vehicles transferred when a business changes its name and no other transaction has taken place or an individual changes his or her name; (8) Motor vehicles transferred to a corporation from a proprietorship or limited liability company, to a limited liability company from a corporation or proprietorship, or from a corporation or limited liability company to a proprietorship, within six (6) months from the time that the business is incorporated, organized, or dissolved, if the transferor and the transferee are the same business entity except for a change in legal form; (9) Motor vehicles transferred by will, court order, or under the statutes covering descent and distribution of property, if the vehicles were titled in Kentucky on or after July 1, 2005, or previously registered in Kentucky; (10) Motor vehicles transferred between a subsidiary corporation and its parent corporation if there is no consideration, or nominal consideration, or in sole consideration of the cancellation or surrender of stock; (11) Motor vehicles transferred between a limited liability company and any of its members, if there is no consideration, or nominal consideration, or in sole consideration of the cancellation or surrender of stock; (12) The interest of a partner in a motor vehicle when other interests are transferred to him; (13) Motor vehicles repossessed by a secured party who has a security interest in effect at the time of repossession and a repossession affidavit as required by KRS 186.045(6). The repossessor shall hold the vehicle for resale only and not for personal use, unless he has previously paid the motor vehicle usage tax on the vehicle; (14) Motor vehicles transferred to an insurance company to settle a claim. These vehicles shall be junked or held for resale only; (15) Motor carriers operating under a charter bus certificate issued by the Transportation Cabinet under KRS Chapter 281; or shall hold the vehicle for resale only and not for personal use, unless he has previously paid the motor vehicle usage tax on the vehicle; (14) Motor vehicles transferred to an insurance company to settle a claim. These vehicles shall be junked or held for resale only; (15) Motor carriers operating under a charter bus certificate issued by the Transportation Cabinet under KRS Chapter 281; (16) (a) 1. Motor vehicles registered under KRS 186.050 that have a declared gross vehicle weight with any towed unit of forty-four thousand and one (44,001) pounds or greater; and 2. Farm trucks registered under KRS 186.050(4) that have a declared gross vehicle weight with any towed unit of forty-four thousand and one (44,001) pounds or greater. (b) To be eligible for the exemption established in paragraph (a) of this subsection, motor vehicles shall be registered at the appropriate range for the declared gross weight of the vehicle established in KRS 186.050(3)(b) and shall be prohibited from registering at a higher weight range. If a motor vehicle is initially registered in one (1) declared gross weight range and subsequently is registered at a declared gross weight range lower than forty-four thousand and one (44,001) pounds, the person registering the vehicle shall be required to pay the county clerk the usage tax due on the vehicle unless the person can provide written proof to the clerk that the tax has been previously paid; (17) Motor vehicles transferred to a trustee to be held in trust, or from a trustee to a beneficiary of the trust, if a direct transfer from the grantor of the trust to all individual beneficiaries of the trust would have qualified for an exemption from the tax pursuant to subsection (6) or (9) of this section; (18) Motor vehicles transferred to a trustee to be held in trust, if the grantor of the trust is a natural person and is treated as the owner of any portion of the trust for federal income tax purposes under the provisions of 26 U.S.C. secs. 671 to 679; (19) Motor vehicles transferred from a trustee of a trust to another person if: (a) The grantor of the trust is a natural person and is treated as the owner of any portion of the trust for federal income tax purposes under the provisions of 26 U.S.C. secs. 671 to 679; and (b) A direct transfer from the grantor of the trust to the person would have qualified for an exemption from the tax pursuant to subsection (6) or (9) of this section; and (20) Motor vehicles under a manufacturer's statement of origin in possession of a licensed new motor vehicle dealer that are titled and transferred to a licensed used motor vehicle dealer and held for sale. ## Nearby sections - [KRS § 138.130 138.130 Definitions for KRS 138.130 to 138.205](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.130.md) - [KRS § 138.132 138.132 Contraband products -- Property used in substantial connection with knowing violation of KRS 138.130 to 138.205 -- Seizure -- Sale -- Remission of forfeiture -- Appeal](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.132.md) - [KRS § 138.135 138.135 Manufacturers to report all shipments into or within state -- Records to be kept by licensed distributors, retail distributors, and retailers](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.135.md) - [KRS § 138.140 138.140 Taxation of cigarettes, tobacco products, and vapor products -- Taxes not applicable to reference tobacco products -- Rates -- Liability for and remittance of tax -- Administrative regulations -- General Assembly's recognition of effect of increased tobacco taxes on public health -- Potential reduction of tax on modified risk tobacco product](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.140.md) - [KRS § 138.143 138.143 Floor stocks tax on cigarettes, snuff, and other tobacco products -- Rates -- Required returns -- Installment payments](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.143.md) - [KRS § 138.146 138.146 Evidence of cigarette tax payments -- When payment for units of cigarette tax evidence shall be made -- Consequence of failure to make timely payment](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.146.md) - [KRS § 138.155 138.155 Payment of tax without affixing evidence to individual packs](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.155.md) - [KRS § 138.165 138.165 Contraband cigarettes -- Vending machines and motor vehicles -- Seizure -- Sale -- Remission of forfeiture -- Appeal](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.165.md) - [KRS § 138.175 138.175 Selling contraband cigarettes](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.175.md) - [KRS § 138.183 138.183 Officer and member liability](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.183.md) - [KRS § 138.185 138.185 Civil penalties for violation of KRS 138.130 to 138.205](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.185.md) - [KRS § 138.195 138.195 License required for various dealers -- Fees -- Revocation of licenses -- Appeals -- Records -- Reports -- Administrative regulations -- Tax returns -- Grounds for denial of license](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.195.md) - [KRS § 138.197 138.197 Publication of licensed distributors on department's Web site](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.197.md) - [KRS § 138.205 138.205 Prohibited acts by licensees and manufacturers -- Acting without license](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.205.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C138_S138.470. Check the current official text before relying on it. Not legal advice.