Important Policy Regarding Kentucky Red Titles and Proof of Ownership

MEMORANDUM

To: Licensed Utah Vehicle Dealers

From: Utah State Tax Commission

Date: October 20, 2026

Subject: Important Policy Regarding Kentucky Red Titles and Proof of Ownership.

The purpose of this memorandum is to advise licensed Utah dealers of a critical policy clarification regarding the acceptance of certain vehicle titles originating from Kentucky.

Kentucky issues a distinct, physical red-colored title for vehicles that have a prior history of being branded as junked or crushed, regardless of whether they display a salvage or rebuilt brand. These documents explicitly feature a warning notice across the top stating: "May not be eligible for titling in all states.

Under Utah Code §§ 41-1a-202 and 41-1a-1005.5, the operation of nonrepairable vehicles on Utah roadways is strictly prohibited, and the repair, reconstruction, or restoration of such vehicles is unlawful. Because Utah law does not permit the issuance of titles or registration for vehicles previously classified as junked, the State of Utah cannot accept Kentucky red titles as valid proof of ownership to title or register these vehicles.

Dealers are advised to exercise due diligence when acquiring out-of-state vehicles or accepting trade-ins when presented with a Kentucky title document. To prevent registration delays and protect consumers, please ensure that vehicles originating from Kentucky do not carry the red title designation before completing transactions intended for titling and registration in Utah.