Kentucky has implemented a new state law that subjects recreational trailers with living quarters to the same taxation as other motor vehicles. Previously, any pull-behind RV was not being taxed.
Under House Bill 360, which took effect on July 1, campers, motor homes, travel, fifth-wheel trailers, and pop-up campers that contain living quarters and require licensing for operation on public highways will be subject to the state’s six percent motor vehicle usage tax.
The change is part of the state’s shift from income-based levies to sales and use tax and is expected to generate an additional $16.1 million annually for the Road Fund. The new law was enacted by the 2023 General Assembly and was not widely publicized before its implementation, causing some confusion among county clerks.
The tax will be based on the vehicle’s sale price or the manufacturer’s suggested retail price for new vehicles, and the book value for used vehicles.