Question about lease tax rate in Kentucky

Ask the Hackrs
1

Random question I know, but I’ve asked the county clerk and they weren’t any help and the dealer is out of state so not familiar with Kentucky as much.

Anyone familiar with Kentucky and vehicle lease tax/fees? Trying to lease a vehicle out of state and there is over $70 in tax a month from sales tax and usage tax.

From what I can find online Kentucky seems to have a udriveit program where (at least how I understand it) you pay the usage tax through that, but no sales tax on a lease.

I’m not 100% certain on this and Kentucky’s website is convoluted. I tried to inquire at the county clerk, but they don’t really know what I’m talking about. Any help?

2

If the manufacturer (such as infiniti) is registered with the state under u-drive-it program, then yes, you just pay 6% tax on the monthly payment.

3

Lessor handles the U-Drive-It tax in 99% of cases. There was issue a few years ago I can remember where Ally wasn’t properly paying the tax so Kentucky customers were having a hard time registering Ally/VAULT leases.