KentuckySB 1102026 Regular SessionSenateWALLET

AN ACT relating to motor vehicles and declaring an emergency.

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Bill Overview

Analyzed Economic Effects

21 provisions identified: 6 benefits, 5 costs, 10 mixed.

Usage tax break for very heavy vehicles

Motor vehicles, including farm trucks, with a declared gross weight of 44,001 pounds or more (with any towed unit) are exempt from the motor vehicle usage tax if registered in the proper weight range. If you later register that vehicle below 44,001 pounds, you must pay the tax unless you prove it was already paid.

Simpler vehicle title transfer after death

You can name one beneficiary to get your vehicle title when you die. The county clerk records the beneficiary when you file the form and pay the fee; after death, the beneficiary gets title by showing a death certificate and paying any due taxes and transfer fee. This transfer avoids probate and is not taxed under KRS 138.460. If spouses jointly own a vehicle or manufactured home, the title moves to the survivor with no title application fee when one spouse dies; include a death certificate. A printed title is still available for a fee if the survivor wants a paper copy.

Hail‑damaged car titles and insurance rules

If hail is the only damage and repairs top 75% of retail value, your title can be branded "Hail Damage" after you provide an insurer statement and a sheriff inspection. The sheriff is paid $15 per inspection, and the county clerk is paid $3 to enter the brand. A "Hail Damage" brand stays on the title and carries over to new owners. Until the title is branded, insurers cannot pay more than 75% of retail value on hail‑only claims.

Protections and disclosures for rebuilt cars

Insurers cannot refuse or reclassify coverage just because a vehicle has a rebuilt title, and manufacturers cannot block vehicle software installs on rebuilt‑title cars. Dealers must use a clear "THIS IS A REBUILT VEHICLE" sticker and an approved buyer form; if they fail to get your signature, you can void the sale for up to 45 days after title is issued. For nondealer sales, disclosure must appear near the start of the title application. For non‑hail claims with damage of 75% or more of value, insurers cannot pay until you surrender the title or apply for a salvage title within three working days of settlement. These notice rules do not apply to vehicles more than ten model years old.

New electronic title and lien rules for dealers and lenders

Starting July 1, 2027, licensed vehicle dealers and manufactured home sellers must file titles, registrations, and liens in the state electronic system. Lenders that normally finance cars or manufactured homes must e-file liens by that date, unless the Cabinet exempts them. Dealers that file fewer than 25 title applications a year are exempt. Starting January 1, 2027, lienholders can request a printed title through the system. Lenders may send a termination by a Cabinet form or a dated, signed, notarized letter on lender letterhead with required details. County clerks must enter received filings within five days. The law removes a $2 penalty for late lien filings.

New rules and caps for coal haulers

Coal businesses that run trucks over posted weight on roads outside the extended‑weight system must sign a cooperative agreement with the Department of Highways or post a bond, unless the road has a Cabinet‑approved 80,000‑lb resolution. Your annual contribution is capped at $5,000 per mile, with at least $1,200 per truck on segments over 3 miles, and no more than $0.10 per ton per operator unless you agree otherwise. The Cabinet can let you do approved design or road work instead of cash, and you may carry forward any overpayment. If you end an agreement and report 50,000 or more tons hauled on that road, the Cabinet must add that segment to the extended‑weight system immediately. The Cabinet will set bonding rules by regulation, and the old special hauling‑permit statute is repealed.

Electronic titles and payments expand by 2027

Beginning January 1, 2027, owners can request printed titles; if there is a lien, a printed title is available after the lien shows satisfied in the state system. Starting the same date, the electronic record counts as the lienholder physically holding the title. The Transportation Cabinet must build and run the statewide electronic title and centralized lien systems by January 1, 2027; the tax for noting a lien must be reported and paid through AVIS. County clerks may accept cards, electronic checks, and ACH, and may charge convenience fees to recover provider costs. Clerks must remit weekly or face a 1%‑per‑month late penalty, and clerks who follow verification steps are protected from liability for fraudulent termination statements.

Easier vehicle and license help for military

If you served outside the U.S. and stored your vehicle on base, you can renew registration within 30 days after you return and won’t be cited for driving on an expired registration in that 30‑day window if you show proof; the clerk prorates the fee. You (or your spouse or dependent) can renew certain licenses by mail or online. If your license expired while you were away, you can renew within 90 days of return without written or road tests and won’t be cited during that 90‑day period with proof. Eligible veterans and service members can get military special plates for motorcycles; the special plate fee replaces the normal motorcycle registration fee.

Veteran label on driver license or ID

If you served in the Armed Forces, Reserve, or National Guard and were discharged honorable or general under honorable, you can add “veteran” to your license or ID. Show proof like a DD‑214, an unexpired Veteran ID card, or other listed documents. The Transportation Cabinet places the veteran mark on the card.

Longer limited commercial driver licenses

The Transportation Cabinet must issue rules that extend the time a limited commercial driver license can last. The new length matches the maximum allowed by federal rules on the law’s effective date.

State keeps routine road maintenance duty

The Commonwealth still must perform normal routine maintenance on roads covered by cooperative agreements. Private or local agreements do not remove the state’s duty to do basic upkeep.

Extra $2 to renew boats by mail

If you renew a motorboat registration by mail, you pay an extra $2. The state must notify you at least 30 days before expiration and provide mail‑in forms.

Rules for street-legal special vehicles

Street‑legal special purpose vehicles must be registered, carry motorcycle‑level liability insurance, and display a motorcycle plate. These vehicles cannot travel more than 20 miles on highways with centerline markings. The vehicle must meet the statutory equipment rules.

Set fees for titles and ATVs

A regular certificate of title costs $9. A corrected title costs $6 (no charge if the clerk or state made the error). A printed title costs $6, and a speed title costs $25. ATV titles cost $15; corrected ATV titles $10; printed ATV titles $6. The Transportation Cabinet will also set titling and registration fees by regulation.

One-time $98 trailer registration option

You can permanently register a trailer or semitrailer for a $98 fee. The registration ends when you sell the trailer or take it out of service. The county clerk’s issuing fee is set by the Transportation Cabinet by rule.

Tighter enforcement of vehicle weight rules

Drivers must obey official traffic devices and state‑approved weigh station bypass systems unless directed otherwise by an officer. Violating listed weight rules brings a fine of $20 to $100 per offense. Cases are heard in the District Court where the offense happened.

Special plate fees and cause funding

The law sets how initial and renewal fees for many special plates are split between the state, county clerk, and any named group. You can combine any special plate with a personalized plate for an added $25, split $20 to the state and $5 to the county clerk. For the child victims’ trust fund special plate, any fee money left after covering plate costs goes to the child victims’ trust fund.

Changes to county clerk fees and funds

The Transportation Cabinet sets many county clerk motor‑vehicle service fees by regulation, instead of fixed dollar amounts in law. Your cost at the clerk may go up or down when the new fee schedule takes effect. County clerks can pay state agencies and taxing districts by ACH debit. One dollar from each listed documentary tax goes to a state fund for preserving local records. Ninety percent of those dollars are set aside each year for grants to county clerks; if not enough clerks apply, the Department may fund other eligible projects.

New rules for vehicle titles and salvage

If you sell a vehicle and deliver the title with any required affidavit, you pay a $2 transfer fee to the county clerk. You can get a Kentucky salvage title using an original out‑of‑state junking or similar ownership paper if you provide at least two photos and two estimates showing damage is under 75% of retail value. That title is branded “SALVAGE.” If you receive a rebuilt title after passing the required inspection, you must attach a metal plate inside the driver’s door that reads: “REBUILT VEHICLE May Not Be Eligible For Title In All States.”

Recording fee set; $6 supports housing

Recording a listed instrument up to five pages costs $33. Each extra page adds $3. Of each $33, $6 goes to the state affordable housing trust fund and $27 stays with the county clerk. Clerks must send the $6 within 10 days after each quarter with a report.

Updated vehicle and ID definitions

The law updates many motor‑vehicle definitions, including travel ID, special status individuals, and various vehicle types. These definitions control how other motor‑vehicle rules apply across the code.

Sponsors & Cosponsors

Sponsor

Jason Howell
Republican • Senate

Cosponsors

John Blanton
Republican • House

Roll Call Votes

All Roll Calls

Yes: 219 • No: 24

House vote • 4/1/2026

passed

Yes: 76 • No: 13

Senate vote • 4/1/2026