Operating in Kentucky? You May Need a Special Permit

Several states assess a weight-mile tax or highway use tax on motor vehicles, in addition to other motor carrier taxes. Kentucky is one of these states.

The Kentucky weight-distance tax is known as the KYU number. This program applies to all vehicles a combined license weight greater than 59,999 pounds. These taxes are based on the miles a vehicle operates in the state.

If you plan to operate into or through Kentucky, make sure you have valid credentials for this program before you go.

Frequent trips to Kentucky

For carriers with covered units regularly traveling in Kentucky, a KYU license is recommended.

To participate in the program, carriers subject to the tax must:

• Obtain a KYU license.
• Provide a list of vehicles subject to the weight-distance tax. All qualified vehicles must be listed to avoid citations.
• File quarterly reports on or before the last day of the month following the close of the quarter, even if no tax is due. ​If you did not travel during a quarter, you must file zero miles to avoid penalties, interest, and a revocation fee of $500.
• Maintain complete records for five years on: 
  • All motor vehicles, by type, operating on Kentucky highways, including weight and number of axles;
  • Mileage details; and
  • All purchases, use, and other dispositions of gasoline and special fuels.

Infrequent travel to Kentucky? Trip permit is available

Carriers can also purchase a temporary KYU permit if not making regular trips through the state.

You must obtain a trip permit for each truck, and the permit is good for ten days.

KYU tax is separate from other taxes

These KYU taxes are in addition to and separate from:

• Fuel taxes under the International Fuel Tax Agreement (IFTA), and
• Heavy vehicle use taxes (HVUT) due to the Internal Revenue Service.

In some circumstances, you may need to pay all three.