Ok, first off, SHAME ON ME....

I cannot believe I haven't taken care of this before now! 

In 2005, I bought a new Kiefer built LQ trailer in KY.  I live in IN.  I asked that the sales tax be included in my loan.  After a couple of weeks, I received a certificate of registration from KY that was in our name and with our address but with KY as the state.  Obviously wrong.  I then received a check back from the dealer that was the exact amount of the sales tax.  I called and talked to them and they said that I did not owe any sales tax since I bought the trailer in KY and lived in IN.  I said, no I think I will have to pay it when I register it in IN.  They said, well you will show them the Bill of Sale, which shows that you "paid" the sales tax.  I doubted this, but didn't ask any further questions.  Again, shame on me.

I never went to the license branch to register/title my trailer.  To be quite honest, I never got pulled over because we always haul in KY when we do haul it somewhere which doesnt require tags.  I know, that wasnt right of me.  :(

Now, I'm here in 2009 and I want to haul more and want my trailer to be LEGAL.  LOL

The trailer is "registered" in KY still.  So now I'm wondering how do I go about getting this thing legalized? 

My bill of sale shows that I paid the taxes.  Is that all they will ask for to prove that?  Or is there a way they can look to see the trailer hasn't had the taxes paid?

Also, the other thing is, with the trailer being "accidentally" registered in KY, how will I take care of that?

I would call the License branch, but they're closed today.  So I will call tomorrow, but I dont want to be too descriptive and get my butt in trouble for not taking care of this before now. 

I plan on telling them that the trailer hasnt' been used and has only been used for camper purposes only at home, so that it wont be obvious that I've been driving around in a trailer that hasn't been tagged.

I'm just trying to see how much money I need to save to get this thing registered.  Along with, what I need to take. 

Your dealer was correct;  you did not owe Ky taxes;  you may owe In taxes (depends on the sales tax law in In)  and most likely they had no way of calculating In tax and forwarding payment to In, so it is left up to you to take all of your paperwork to your vehicle licensing authority in order to register your trailer as an In trailer.........hopefully the In tax will be the same as the tax you financed;  but since Ky did not actually collect the tax, you would not be entitled to a credit against the In tax, so..................  Let us know what happens.

Since you want to get "legal"  I would strongly advise against telling an untruth to the license office;  that could cause you more problems than being slow about getting your registration.  Most times the repercussions from attempted cover up are much worse than the original act/event.

I agree about the tax, if IN requires it, oh well you haven't paid it yet anyway.

I would go a different route on registering it though. Ky doesn't require a title on trailers so I would go to the DMV in IN and tell them I need to register the trailer and I don't have anything but a Bill of sale. Let them issue a relacement title on it. I think that would be the most pain free way to do it. The sherrif will come out do an inspection and in a couple of weeks you will have a title.

You don't pay sales tax on a horse trailer in Kentucky. That's why you got it back. Also Kentucky dosen't require a tiltle on a trailer unless it is being used as commercial. I don't see anything at all like fraud in this deal.

I live in Kentucky and I buy and sell alot of trailers.

How do you smell fraud, the dealer made a misstake and collected the tax, but returned it to the customer.  Some states do not actually have titles for trailers and as HWBar stated KY does not.  The bank has what they need for the lien information. 

So the only thing these folks needs to do is take the paper work from KY showing they own the trailer along with the bill of sale, tell the tax office that they need to transfer this trailer to their HOME address in the state they live in pay the transfer cost and be done.  Very simple deal actually!