said taxes and penalty from the date of delinquency. A penalty or interest shall not accrue on a
motor vehicle under dealer assignment pursuant to KRS 186A.220.
(4) When a motor vehicle has been transferred before registration renewal or before taxes due
have been paid, the owner pursuant to KRS 186.010(7)(a) and (c) on January 1 of any year shall be
liable for the taxes on the motor vehicle, except as hereinafter provided.
(5) If an owner obtains a certificate of registration for a motor vehicle valid through the last day of
his second birth month following the month and year in which he applied for a certificate of
registration, all state, county, city, urban-county government, school, and special tax district ad
valorem tax liabilities arising from the assessment date following initial registration shall be due
and payable on or before the last day of the first birth month following the assessment date or
date of transfer, whichever is earlier. Any taxes due under the provisions of this subsection and
not paid as set forth above shall be considered delinquent and subject to the same interest and
penalties found in subsection (3) of this section.
(6) For purposes of the state ad valorem tax only, all motor vehicles:
(a) Held for sale by a licensed motor vehicle dealer, including licensed motor vehicle auction
dealers;
(b) That are in the possession of a licensed motor vehicle dealer, including licensed motor vehicle
auction dealers, for sale, although ownership has not been transferred to the dealer; and
(c) With a salvage title held by an insurance company;
on January 1 of any year shall not be taxed as a motor vehicle pursuant to KRS 132.485 but shall
be subject to ad valorem tax as goods held for sale in the regular course of business under the
provisions of KRS 132.020(1) (e) and 132.220.
(7) Any provision to the contrary notwithstanding, when any ad valorem tax on a motor vehicle
becomes delinquent, the state and each county, city, urban-county government, or other taxing
district shall have a lien on all motor vehicles owned or acquired by the person who owned the
motor vehicle at the time the tax liability arose. A lien for delinquent ad valorem taxes shall not
attach to any motor vehicle transferred while the taxes are due on that vehicle. For the purpose
of delinquent ad valorem taxes on leased vehicles only, a lien on a leased vehicle shall not be
attached to another vehicle owned by the lessor.
(8) The lien required by subsection (7) of this section shall be filed and released by the automatic
entry of appropriate information in the AVIS database. For the filing and release of each lien or set
of liens arising from motor vehicle ad valorem property tax delinquency, a fee of two dollars ($2)
pursuant to this section shall be added to the delinquent tax account. The fee shall be collected
and retained by the county clerk who collects the delinquent tax.
(9) The implementation of the automated lien system provided in this section shall not affect the
manner in which commercial liens are recorded or released.