Kentucky Mileage Use Tax
KYU / Mileage/Highway use taxes:
Carriers operating motor vehicles interstate or intrastate in Kentucky with a combined license weight in excess of 59,999 pounds are subject to Kentucky's weight-distance (KYU) tax. Carriers subject to the tax must obtain a KYU license. Upon application for the KYU license, the carrier must provide a list of vehicles subject to the weight-distance tax.
One KYU license is issued for all units operated under the license. It is not necessary to display the KYU number on the vehicle; enforcement will be verified through the US DOT number. However, the KYU number must be displayed, in addition to the DOT number, if the vehicle is leased and the lessor holds the KYU account and pays the KYU taxes. A copy of the lease agreement clearly defining who is paying for the KYU credential should be kept in the vehicle to avoid confusion.
Carriers are responsible for notifying the Kentucky Transportation Cabinet when there are vehicles added to or deleted from the list of vehicles subject to the weight-distance tax. The list of vehicles may be updated online at http://transportation.ky.gov/Motor-Carriers/Pages/Tax-and-Finance.aspx.
Quarterly reports must be filed on or before the last day of the month following the close of the quarter (the KYU reports are separate from the IFTA returns). Reports are required even though no tax may be due. All licensees must maintain records for fuel purchases, consumption, and miles traveled for a period of five years. Reports may be filed online at http://transportation.ky.gov/Motor-Carriers/Pages/Tax-and-Finance.aspx.
Tax refunds or credits
Information regarding credits or refunds under IFTA is included in the IFTA Agreement Manual.
The State of Kentucky will allow refunds for tax-paid fuel used in power-take-off or reefer equipment, but only if the fuel was purchased from Kentucky licensed dealers and the original purchase receipts verify it, plus the carrier must maintain a separate tank for off-road fuel. A refund permit is required (apply on Form 72A135) and the refund re-quest must be submitted on Form 72A053A — Application for Refund of Kentucky Motor Fuel Tax Paid on Non-Highway Motor Fuels. Form TC 95-214 is required for PTO refunds..
Other Bonds Available