Overview of Kentucky Towing Laws
Towing laws are an important issue for every driver to understand. Individual states impose different rules on how and when a car can be towed from a parking space, lot, roadway, or other area. There are legal limitations on where drivers can park their vehicles without facing the threat of having their vehicles removed by a towing company. There are also rules about how towing companies must conduct business under specific circumstances, as well as how they may be permitted to charge for their services.
Such is the case in Kentucky. The state imposes specific rules on parking and immobilization for the state’s private, city, and county driving populations. This article will cover the most important details about those laws in order to explain how they work and why they are important.
Before covering Kentucky’s laws in detail, it’s worth considering how they stack up with the laws in other states across the country. In an overwhelming majority of states, our law firm has found that each jurisdiction’s laws focus on limiting where and how a vehicle can be towed or removed by a private property holder or an officer of the law.
In Kentucky , for instance there are very specific regulations on where a vehicle owner may park on public or private property. If the vehicle is parked in a location that violates such regulations, properly notified authorities (such as a privately-owned tow truck company or law enforcement) may remove the vehicle. Owners whose vehicle has been towed (whether the vehicle was parked in a legal or illegal location) have particular rights under Kentucky law concerning the retrieval of their vehicle.
Finally, as is the case in many states, in the event that a violation occurs (for example, if a vehicle was towed under improper circumstances), Kentucky’s vehicle owners have the ability to seek help through the legal system. In fact, Kentucky dedicates an entire chapter of its statutes (Chapter 376 that deals specifically with the proper maintenance of private lots and garages and the towing and removal of motor vehicles from those locations. This law ensures that property owners uphold a standard of care and properly notify vehicle owners whose cars may have been properly or improperly towed.
General Towing Rules
The towing and storage of vehicles and other property in Kentucky is regulated by both state law and local ordinances. Towing companies and operators must know and comply with these regulations to fully protect themselves from liability and to maintain their own financial welfare.
The Kentucky Consumer Protection Act, KRS Chapter 367, was passed to protect consumers during transactions that involve necessary information that the consumer does not have reasonably accessible to them. The Act applies to all services provided in the conduct of trade or commerce unless specifically exempted. The Act has some specific definitions that apply to towing:
From a general standpoint, any transaction where a provider of services (the "merchant") has superior knowledge in how to perform the service(s) and has the ability to bill the customer later usually falls under the Act. Auto towing services in general fall under the Kentucky Consumer Protection Act, as vehicles are stored for a period of time at the impound lot while the owner is notified of the impound. There is no reason to think that there should be a different policy for towing than the policy that applies to general vehicle repair, even though most mechanics have large garages and permanent office space.
KRS § 246.730(1) requires each tow truck company in Kentucky to maintain and file reports of all towing activity on each tow truck. The fee schedule for towing and storage, the number and nature of each call, and billing information must all be included in the report. Further, the report must be filed with the Kentucky Transportation Cabinet each year on a form provided by the Cabinet.
KRS § 186A.080 requires an owner or operator of a tow truck to complete a training course that reviews laws, safety standards, equipment and procedures before beginning any towing operation. There is also a mandatory certification process run by the Kentucky Department of Vehicle Regulation, which requires the applicant to submit an application that includes the name and address of the applicant; the name, address and phone number of the business that is responsible for maintenance and upkeep of all equipment; the names and addresses of all owners; the number of tow trucks employed in the business; a criminal history for all owners and employees who will operate a tow truck; the identification number of each tow truck operated; a statement regarding any prior application for or revocation of a previous permit; proof that the applicant has in place the required insurance coverage; proof that the applicant has executed any necessary financial responsibility agreement required by a municipality in which the applicant regularly conducts business; an authorization allowing the Department to obtain criminal history information on the applicants and employees; a statement requiring the applicant to notify the Department in writing of any change in the application; a statement requiring the applicant to permit a periodic inspection of all equipment and premises by a transportation cabinet engineer; and a statement requiring the applicant to file an annual report of all activity each year with the Department. The application must be accompanied by a $25.00 fee established by the Department.
Towing and storage charges are subject to sales tax. To determine the sales tax on the towing and storage charge, the towing and storage company should compute its standard charges before any discounts, add that total, and multiply by 1.06 (reflecting the sales tax rate of six percent) to obtain the total including tax. 606 KAR 42:040 § 11(5); 803 KAR 1:120 § 1(4)(f).
Vehicle Owners’ Rights
You may have heard the old saying that ignorance of the law is not an excuse. We, as lawyers, have seen that in action often, and it is usually not so great for the person that believes they should have been let go with just a warning.
So, we’re going to spend a little time over the next few weeks talking about the rules that surround Kentucky towing law. When Kentucky law says that someone is owed a right, it does not mean you owe them a thank you note. Instead, these are really just that, rights. For instance, if someone tows your vehicle from a parking lot without an agreement to do so, that person should pay you for the loss of use you incurred as a result of having your car towed. You are not required to send them a thank you card, or to say that you appreciate their kindness. That is more of a "right" of the owner of the car.
Here are some of the rights of a vehicle owner under Kentucky law:
If you find that your car has been towed, you are allowed to get it back 15 days from when it was towed. Sometimes, a tow company will want you to sign something, this is usually just to prevent more charges from accruing if you do not move your car in a timely fashion. You should not sign anything before you talk to an attorney like me who knows the rules. I have seen people sign contracts extending the period before they can retrieve their car, even though Kentucky law says they should be able to get their vehicle back on a certain date. Don’t let that happen to you!
Towing From Private Property
No one can be towed from private property without the consent of the owner or lessee and without a sign posted in plain view, as follows:
(a)
1. Any vehicle previously authorized for towing by a property owner or lessee may be impounded and removed to a place of storage or garage, if the property owner or lessee has posted a sign or signs at each entrance or exit to the property and at locations on the property open to the general public and visible to any person approaching the vehicle, which state:
a. "Any vehicles parking in violation of (title of agent of property owner) will be subject to being towed." This may be abbreviated to read "Unauthorized vehicles will be towed."
b. "Towing Enforced by (name of company or wrecker service)." This may be abbreviated to read "Towed by (name of company or wrecker service)."
c. "All (name of company or wrecker service) vehicle will be required to pay all charges incurred upon vehicle retrieval at (name of company or wrecker service) before releasing or selling vehicle." This may be omitted.
2. The sign shall be posted no more than one sign per vehicle entrance or exit. Each sign shall not exceed four square feet in size, and lettering shall not exceed three inches in height with individually painted six-inch lettering, or individually embossed lettering of a minimum 48-point size. The sign shall be posted in such a manner as to be easily readable by the general public, and shall be kept clean and visible at all times. The property owner or lessee shall maintain uninterrupted access to the posted sign while occupying the property.
3. Any company or wrecker service that tows vehicles from a lot owned or leased by a property owner or lessee posting and enforcing the provisions of this subsection must be in possession of a valid City of Florence business license, and the parking of the vehicle towed must not have resulted from a mechanical breakdown.
(b) No property owner or lessee of private property shall authorize any company or wrecker service to tow any vehicle from that property, without having received prior consent of the Commonwealth’s Attorney and Deputy Commonwealth’s Attorney in the area in which the property lies. The Commonwealth’s Attorney in the area in which the property lies is the Commonwealth’s Attorney for the city or county in which the property lies, or where applicable the chief assistant, first assistant, or deputy Commonwealth’s Attorney in charge of the criminal docket in the city or county in which the property lies. That a company or wrecker service is duly incorporated and has a business license and insurance does not constitute good faith reliance on its status if the company or wrecker service has been constituted for the sole purpose of furthering the conduct which is the subject of the charge being filed.
Fees and Expenses
Consumers need to be informed about the fees and charges associated with towing and other towing-related services. As with most services that consumers need or desire, a fee is charged for all services rendered.
Towing Charges
Companies are permitted by law to charge for towing charged on private property, however, certain parameters apply to the fees charged by companies. The law sets limits on towing fees in Kentucky. The law provides that the following fees may be charged upon the towing of a passenger vehicle from private property:
The law also provides that labor charges are permissible up to $50.00 for the first hour or fraction thereof, and thereafter $20.00 for each additional 15 minutes. The law also allows towing companies to charge a service charge of $2.00 for the release of the vehicle between the hours of 5:00 p.m. and 8:00 a.m. The law provides that certain fees may not be charged by towing companies, which include; Under no circumstances shall a customer be charged a hookup fee or a nonconsent fee , nor shall a company charge or receive any passenger vehicle storage fees unless the vehicle is first (1) hooked up for towing and (2) driven in a forward direction or otherwise disassociated from the vehicle being towed. The law provides that any person violating the permissible fee provision may be fined by applicable law enforcement.
Nonconsent Towings; Right to Contest Fees
If a customer wishes to contest the fees charged by a company, the customer is permitted to do so with an independent calibration of the meter used by the company. The law states that all meters utilized by the lawful towing of a passenger vehicle must be calibrated not less than once every six months, and must be certified as to their accuracy by the company utilizing such equipment. Other provisions of the law provide other independent agencies the right to inspect the equipment and certificates pursuant to state regulations. If the meter fails or the meter is not properly calibrated then a vendor is prohibited from collecting the charges for the service enumerated by the law.
Challenging a Tow or Fee
If you believe you have been wrongfully towed, the first step is to determine the basis of your argument. There are a few different ways a tow can be disputed: As indicated above, a vehicle must be clearly marked in order to meet signage requirements for posting of rates and to determine if a business establishment has an exclusive right to tow. If the signage is inadequate, it should form the basis of your dispute. Charges over applicable rates or unapproved charges may form the basis for a dispute of a charge. Here’s how the dispute process works in Kentucky: There are statutes in place in Kentucky limiting the amount a person can be charged for tow services. Individuals are charged a flat fee for the tow plus an additional charge per day that the vehicle being towed is being held. Kentucky law states the charge may not exceed $125 for the tow services and $25 per day of storage. The state also includes Kentucky Tax and Title charges into the $125 fee. The process for disputing a charge may require you to provide written notice to the service station. The owner may then have an option to contest your claim. If the company refuses to reflect a credit, then you can bring suit in small claims court for that amount.
Penalties and Enforcement
Some of the most severe penalties for violating Kentucky towing laws are felt in the pocketbook. Under KRS 281.825(1)(e), a towing company can be fined up to $1,000 per day for unAuthorized or unjustified towing of a motor vehicle. Yet, this isn’t all that can happen. Anyone may collect triplicate treble damages as a civil sanction under KRS 386.245(2), and the owner of the vehicle may recover damages and reasonable attorney’s fees according to KRS 281.850 if egregious conduct is shown. If a towing company knows they aren’t following this law, they’re risking their own business and possibly facing criminal charges.
To get a level playing field where these laws are followed, the state collects evidence of noncompliance and seeks penalties. Complaints demonstrate that a business owner has violated rules. The state conducts investigations using files, interviews, video, and photos. Testimony is taken under oath if a violation is suspected.
New and Updated Laws
Kentucky lawmakers have put forth numerous bills in 2019 relating to vehicle towing speaking to various subjects including junk car buying and towing of disabled vehicles. One of the most significant pieces of legislation is the Towing Vehicle Registration Act which requires all dealers and brokers holding themselves out as a towing company to register as a motor vehicle dealer and pay the applicable fees, as well as to include certain required disclosures in the contracts they use with the vehicles being towed. In addition , Kentucky has expanded its electronic vehicle storage tracking system which previously was limited to repossession companies that had a bonded agent. The program began in 2001, and it allows the Kentucky State Police to have a computerized platform that allows law enforcement officials to locate owners of abandoned selected vehicles, and to maintain a database of vehicles in Kentucky used for repossession. The law also expanded an existing lien program so that the program previously available to purchasers of vehicles purchased at auction, and beginning July 1, 2019, will be available to repossession companies if they hold a license and are on the state’s vehicle repossession registry.