Governor Steve Beshear held a signing ceremony today in Louisville for a bill aimed at making new automobiles more affordable for Kentuckians.
The law reduces the total taxes paid on new cars by allowing the value of trade-ins to count against the ticket price of new vehicles. Or, as Louisville Mayor Jerry Abramson puts it…
“If you buy a $25,000 car and you trade in a $10,000 car, the tax is only on the difference, which would be $15,000,” he says. “It’s a good savings.”
Beshear says he hopes the legislation will encourage Kentuckians to buy cars and spend the savings.
“We’ll hopefully put some money in the pocket of our workers that they can then go out and spend in the economy or the grocery store, wherever they need to spend money and that’ll start rippling through the economy,” he says.
The law takes effect on September 1st and will last for one year or until $25 million in tax savings has been realized.
The bill-signing ceremony was held at Ford’s Kentucky Truck Plant.