The Kentucky Motor Vehicle Commission today adopted a sweeping Consent Decree agreement to resolve claims made by customers of the Nicholasville-based car dealer Auto Plaza USA. The Commission began its investigation into the claims made against Auto Plaza USA in early May 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.
After following the process established by Kentucky state law, the Motor Vehicle Commission voted unanimously today to enter into a binding agreement with Auto Plaza USA that obliges the dealership to pay more than $600,000 in taxes, penalties and fees that were inaccurately billed to Auto Plaza customers. In addition, the dealership must pay a $4,000 fine. The dealership agreed to the terms of the Consent Decree on July 28, 2017 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 Motor Vehicle Commission member. “The agreement also holds Auto Plaza rightfully accountable for their actions, while allowing it to stay in business so that it can meet its financial obligations. They will be operating under a regulatory microscope moving forward, and the Motor Vehicle Commission reserves the right to revoke their dealer’s license if they fail to honor any part of the agreement.”
Carlos Cassady, the Executive Director of the Motor Vehicle Commission, is overseeing the Auto Plaza investigation and enforcement activities.
“The legally established process worked just as it is designed to work,” Cassady said. “I’m proud of our staff members for seeing this investigation through and grateful for the Motor Vehicle Commission’s actions today in accepting the Consent Decree agreement. We hope to get this matter fully resolved as quickly as possible to relieve the customers who have been negatively affected by this experience.”
Auto Plaza USA customers who believe they were subjected to the inaccurate tax payments are encouraged to visit the Motor Vehicle Commission website at http://www.mvc.ky.gov
Customers should download the Motor Vehicle Commission Complaint Form and return it, along with any notices from the Kentucky Department of Revenue showing taxes, penalties and interest due, to the Commission.
The Kentucky Motor Vehicle Commission is responsible for:
•Licensing motor vehicle dealers, salespersons, manufacturers, distributors, and their representatives pursuant to KRS Chapter 190.
•Providing consumer protection by investigating complaints against dealerships in regards to purchasing a vehicle and dealer failing to transfer to the customer.
•Issuing administrative citations to dealers who fail to comply with the laws governing motor vehicle sales.
The Commission meets the second Friday of each month at 9:00 a.m.
(provided by Kentucky Department of Transportation)
