Motor Vehicle Tax Continued Exonerations on Motax The taxpayer sold the vehicle out-of-state prior to January 1 of the tax year. The best form of documentation is a copy of the bill of sale. Kentucky residents in the military are required to pay Kentucky property tax. Non-resident military personnel shall provide a copy of their wage and earning statement or Affidavit of Residency which is filed with the Armed Services (Soldiers' and Sailors' Civil Relief Act). Non-resident affidavit from Armed Forces or wage earning statement as documentation. A civilian spouse of military personnel is not exempt under the Soldiers' and Sailors' Civil Relief Act. If an owner has moved to another state prior to the assessment date, the owner's motor vehicle shall not be taxed in Kentucky, provided that the owner has moved his motor vehicle to the new state. Documentation needed: A copy of income tax returns of the new state of residence for the tax year in question. Proof of out-of-state registration or property tax payment to other state on vehicles in question. A copy of out-of-state title issued prior to assessment date of the tax year for vehicle in question. When a divorce occurs, property is awarded to one party or the other. In compliance with laws regarding ownership, the Cabinet will honor a divorce decree if signed by a judge prior to the assessment date of the tax year in question. A debtor in bankruptcy must list all creditors on his/her petition for bankruptcy with the bankruptcy court to give the creditor time to file a proof of claim. Failure to list a creditor prohibits the debt to such creditor from being discharged through bankruptcy proceedings. Public Service Companies pay taxes on their vehicles in the same manner as other taxpayers; that is, locally. These vehicles are also sitused locally. The situs, therefore, would be at the domicile of the branch or driver. Per KRS 136.132, public service companies report motor vehicles and trailers that are owned, operated, or leased to the Revenue Cabinet each year on the Public Service Company Schedule for Owned and/or Leased Motor Vehicle Listing. Local Questions State Questions Public Service Questions Back