Commonwealth of Kentucky s50

Local Mandate Fiscal Impact Estimate

Kentucky Legislative Research Commission

2012 Regular Session

Part I: Measure Information

Part II: Purpose and Mechanics

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HB 86 creates a new section of KRS Chapter 189 to define the term "mini-truck"[1] and add mini-trucks to the definition of "motor vehicle". The effect would permit the operation of mini-trucks on public roadways as opposed to only on private property. Under the measure, operators of mini-trucks would have to comply with the same insurance, title, registration, and usage tax requirements as a motor vehicle. No licensed motor vehicle dealers in Kentucky may sell mini-trucks at this time. Under the measure, dealers of mini-trucks would be excluded from the requirement they be a licensed motor vehicle dealer.

Under current practice, mini-trucks are not recognized at all by the Kentucky Transportation Cabinet. According to the Cabinet, mini-trucks are given a certificate of origin by the vehicle manufacturer that identifies their VIN number and provides a general description and an indication they are to be used as an off-road vehicle. They are imported and approved by federal entities for agricultural purposes only. The American Association of Motor Vehicle Administrators and the American Institute for Highway Safety have indicated that mini-trucks should not be used on public roads.

Under implementation of the measure, county clerks would be responsible for the issuance of the title and registration for the mini-truck as a motor vehicle and would receive fees for these administrative duties. (KRS 186.040 and KRS 186A.130)

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Part III: Fiscal Explanation, Bill Provisions, and Estimated Cost

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The fiscal impact of HB 86 on local government is indeterminable. It is not known how many owners of mini-trucks would choose to go to the expense to purchase and register a mini-truck as a motor vehicle in order to use them on public roadways and to pay the accompanying taxes or who would want to use currently owned mini-trucks on public roadways.

County clerks will be responsible for titling and registering mini-trucks under the existing process for motor vehicles. For administrative duties, the county clerk keeps $1 of $3 fee collected under KRS 186.164(3) and collects and keeps a $6 fee under KRS 186.040(1) and (6). The county clerk will also retain a 3 percent commission on the usage tax collected. The clerk will also retain a 4 percent commission on property tax associated with the registered vehicle. The retained fees should cover the clerk’s administrative costs.

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[1] A “mini-truck’ means a lightweight Japanese kei class utility vehicle.