Kentucky Vehicle Bill of Sale

Introduction

Key Things to Know

1. 1

   The controlling form is TC 96-182, the Application for Kentucky Certificate of Title or Registration. It integrates the odometer disclosure and the total consideration into Section 2 and is submitted with required documentation to the County Clerk. A standalone bill of sale is a supporting record, and a notarized bill of sale can stand in for a signed-over title for certain out-of-state vehicles.

2. 2

   Notarization is required. The Kentucky Transportation Cabinet states that the title-transfer signatures must be notarized, and TC 96-182 carries an attesting-official notary block for both the seller and the buyer, so both parties sign in front of a notary public.

3. 3

   Odometer disclosure is built into the form. Section 2 of TC 96-182 cites 49 USC Sec. 32705 and KRS 190.300 and requires you to state the mileage upon transfer of ownership, with checkboxes for mileage in excess of mechanical limits and for an odometer reading that is not the actual mileage.

4. 4

   Kentucky charges a 6% motor vehicle usage tax under KRS 138.460. On a used vehicle the tax is based on the NADA average trade-in value unless a notarized affidavit of total consideration (the purchase price) is supplied, in which case the stated price controls. Confirm the current rate with the County Clerk.

5. 5

   You title through the local County Clerk within 15 days. The Kentucky Transportation Cabinet, Division of Motor Vehicle Licensing, processes titling, but all applications proceed through the local County Clerk's office, and the title must be transferred within 15 days of the sale.

6. 6

   A standalone bill of sale is supplementary for a Kentucky-titled vehicle. The notarized signed-over title plus TC 96-182 conveys ownership. A bill of sale is required as a substitute only when an out-of-state vehicle only ever had a registration or bill of sale, and it must also be notarized.

7. 7

   The notarized affidavit of total consideration is a price-driven tax differentiator. Because the 6% usage tax otherwise defaults to NADA book value on a used vehicle, the notarized statement of the actual purchase price is what lets the stated price set the tax.

Kentucky Requirements for Bill of Sale

• Form TC 96-182 and Notarized Transfer Signatures

  Kentucky publishes no numbered standalone bill-of-sale form; the controlling document is Form TC 96-182, the Application for Kentucky Certificate of Title or Registration, submitted to the County Clerk. The Kentucky Transportation Cabinet states that the title-transfer signatures must be notarized, and TC 96-182 carries an attesting-official notary block for both seller and buyer.

• Seller and Buyer Information

  Record the full names and addresses of both the seller and the buyer. These identify the parties to the sale and carry over to Form TC 96-182 filed with the County Clerk.

• Vehicle Description With VIN

  Describe the vehicle by year, make, model, body style, color, and the full Vehicle Identification Number (VIN). The VIN ties the bill of sale to the certificate of title processed through the County Clerk.

• Odometer Disclosure in Section 2 of TC 96-182

  Kentucky integrates the odometer disclosure into Section 2 of Form TC 96-182, which cites 49 USC Sec. 32705 and KRS 190.300 and requires you to state the mileage upon transfer of ownership, with checkboxes for mileage in excess of mechanical limits and for a reading that is not the actual mileage. Record the current odometer reading.

• Total Consideration and Date

  State the total consideration (the actual purchase price) and the date of sale. Section 2 of TC 96-182 captures the total consideration, and a notarized affidavit of total consideration lets the stated price, rather than NADA book value, set the usage tax.

• 6% Usage Tax and the Total Consideration Affidavit

  Kentucky charges a 6% motor vehicle usage tax under KRS 138.460. On a used vehicle the tax is based on the NADA average trade-in value unless a notarized affidavit of total consideration is supplied, in which case the stated purchase price controls. This makes the notarized consideration statement a price-driven tax differentiator. Confirm the current rate with the County Clerk.

• Title Through the County Clerk Within 15 Days

  Title and register through your local County Clerk's office, which processes applications for the Kentucky Transportation Cabinet, Division of Motor Vehicle Licensing. The title must be transferred to the new owner within 15 days of the sale.

• Bill of Sale as Title Substitute for Certain Out-of-State Vehicles

  For a Kentucky-titled vehicle the notarized signed-over title plus TC 96-182 conveys ownership and a bill of sale is supplementary. A notarized bill of sale is required as a substitute only when an out-of-state vehicle only ever had a registration or bill of sale, standing in for the signed-over title.