UDI is an alternative method for the payment of Usage Tax as
prescribed by KRS
138.460. UDI allows for deferment of this tax
at the time of registration. Payment will be made based
on rental and lease receipts generated by use of the vehicle.
The laws governing the UDI program are found in KRS
138.463 and are supplemented by the following four administrative
regulations:
Other regulations
concerning U-Drive-It:
Proper
accounting systems to record all usage of the vehicles licensed
under UDI are a must. The taxpayer should be able to account
for all use of the vehicle and revenue generated from its operation
on Kentucky highways.
- Tax
payments to the Transportation Cabinet for vehicles rented
or leased under this program are the DIRECT
obligation of the taxpayer who registers the vehicle.
The tax due may be passed on to the user of the vehicle.
Any tax exempt status of the renter or lessee is not applied
to the permit holder.
- All
transactions will be taxed at the Fair Market Value (FMV)
of the vehicle being rented or leased.
- Taxpayers
should retain every void or damaged rental agreement.
- Loaner
vehicles are NOT under the U-Drive-It program. Please contact
the Department
of Revenue at 502-564-2935.
Additional
Questions?
Contact:
Record
keeping, audits, and all other information - Tammi Jarboe,
KYTC - Road Fund Audits: (502) 564-6760
Registration,
applications and permits - JoYvonne Parrish, KYTC -
Vehicle Registration:
(502) 564-4540
Tax
Branch Home Page
Division
of Road Fund Audits Home Page
Page
Date: 02/08/2007 |