Nicholasville car dealership will pay $600,000 in taxes, penalties and fees

By Greg Kocher

August 12, 2017 11:04 AM

Auto Plaza USA in Nicholasville will pay more than $600,000 in taxes, penalties and fees that were inaccurately billed to customers, according to an agreement announced Friday by the Kentucky Motor Vehicle Commission.

The consent decree agreement adopted by the commission resolves claims made by customers of the car dealership, the commission said in a release. There was no immediate comment from the dealership.

In May the commission began an investigation into claims made against Auto Plaza USA and determined that the dealership had made inaccurate payments of the motor vehicle usage tax that is assessed when a vehicle is sold or transferred.

More than 1,400 examples of inaccurate payments were identified, leaving those Auto Plaza customers with tax bills from the Kentucky Department of Revenue that the customers believed had been fully paid at the time of their vehicle purchase.

The commission voted unanimously to enter into a binding agreement with Auto Plaza USA. In addition to the taxes, penalties and fees, the dealership must pay a $4,000 fine.

The dealership agreed to the terms of the consent decree on July 28 and issued a check to pay the fine in full on that day.

“Most importantly, this agreement makes Auto Plaza customers whole relative to the taxes owed to the Department of Revenue, and it does so as quickly as we possibly can,” said John-Mark Hack, commissioner of the Department of Vehicle Regulation in the Kentucky Transportation Cabinet and a commission member.

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Posted: August 14, 2017