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Kentucky Farm Vehicles to Avoid Taxes in Neighboring States

By Drew Adams

Murray , KY – A Kentucky Senate bill recently signed into law will help farmers operating their agricultural vehicles in other states. Senate Bill 79 changes weight classifications of registered farm vehicles to match Federal standards of the International Fuel Tax Agreement. Kentucky exempts farm vehicles from the IFTA tax, however vehicles registered in the Commonwealth were subject to levy when used in neighboring states. Kentucky Department of Vehicle Regulation Deputy Commissioner Rick Taylor says the law will save Kentucky farmers from being unfairly taxed:

"The International Fuel Tax Agreement defines a qualified motor vehicle as those at 26,000 pounds gross vehicle weight and/or registered weight. So the registered weight of 38,000 pounds, Kentucky's lowest weight caused some of our farmers to have to pay fuel tax in our border states."

Taylor adds the law will alleviate confusion by clearly defining which vehicles are subject to the IFTA tax. Farmers may have their registration updated at no cost by visiting their county clerk's office.