Kentucky lease: Help With U-Drive It/Usage tax Clarification

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Hi all,

Recently moved to Kentucky and looking for clarification/confirmation on usage and sales tax.

We were close to leasing an F150 Lightning until dealerships started coming back with a U-Drive it/usage tax added to the monthly cost.

For a 36 mo/12K lease it adds close to $130/month.

Since the dealers are all out of state they’re unfamiliar with what it is, it just shows that’s what they have to charge.

As far as I’ve been able to research and am seeking clarification on: KY charges usage tax (6%) on the full retail price, and not just on the monthly lease payment. That amount is then spread across the length of the lease.

Is that correct? And, is there anything I’m missing?

If right, dang that makes leasing in Kentucky a lot less enticing.

Appreciate any insight/help, thanks!

When I lived in Kentucky, that was not the case for me. I was charged 6% on the monthly payment. These were all bmws, and I usually got them from Cincinnati. So I don’t know if the law changed since I left a few years ago, and I also can’t tell you how it worked out the way it did. I can tell you I definitely did not pay 6% of the total car price though, so I’d say try to talk to someone more knowledgeable and hopefully you can get it sorted out.

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