Campers defined and taxed as ‘motor vehicles’
BY ROGER SMITH
MOUNTAIN CITIZEN
INEZ — Kentucky has expanded its statutory definition of “motor vehicle” to include recreational vehicles, even nonmotorized ones, in a significant shift in tax liability. In an interview last week, Martin County Clerk Susie Skyles explained what this change means to residents.
“As of July 1, the sale of recreational camper trailers is subject to a 6% motor vehicle usage tax instead of the previous sales and use tax,” Skyles stated. “Residents will no longer pay retailers the 6% sales tax when they purchase a camper. Instead, they will pay a 6% motor vehicle usage tax at the county clerk’s office when they transfer, license and title their campers.”
According to Skyles, the revised legislation includes any motor home, travel trailer, fifth-wheel trailer, pull-behind camper or pop-up camping trailer with living quarters required to be licensed for use on public roads.
The clerk clarified the change would not impact current taxation on sales of regular bumper hitch trailers for general hauling uses, ATVs and boats.
“Those are subject to sales tax as before,” stated Skyles.
Out-of-state customers buying recreational camper trailers in Kentucky and registering them in their home states will not be subject to the motor vehicle usage tax. The sale is also exempt from the 6% sales tax if the customer’s home state allows Kentucky residents to make similar purchases tax-free.
“This aligns with the previous handling of motor vehicles sold to out-of-state residents,” said Skyles.
Under the new legislation, tax rules for recreational vehicles mirror those of motor vehicles. For new vehicles, the tax will be based on an affidavit or the manufacturer’s suggested retail price (MSRP). For used vehicles, it will be based on an affidavit or retail book value. Trade credit will now be allowed for camping trailers against a motor vehicle purchase.
The new rules also extend all MVU exemptions to recreational vehicles, but sales and use tax exemptions will no longer apply. For instance, the “occasional sales use tax” exemption no longer applies, while parent-to-child and military exemptions are now valid.