Around 1,400 customers who purchased a vehicle from Nicholasville-based Auto Plaza USA will receive a portion of $450,000 after being inaccurately billed, according to the Attorney General’s office.
According to a 2017 lawsuit filed by Andy Beshear’s office, between 2012 and 2016 Auto Plaza USA told around 1,400 consumers that the price of their purchased vehicle included all fees and taxes, but the auto dealer submitted insufficient tax amounts. The customers then received delinquent tax notices from the state and owed tax bills they thought had already been paid, the attorney general’s office said.
Refund checks totaling $214,000 will be sent to 700 consumers and $175,000 will be paid to the Kentucky Department of Revenue to resolve any taxes, fees or penalties owned by the remaining 700 customers.
Every Kentuckian impacted will either receive their money back or have their outstanding taxes reconciled, Beshear said.
In August 2017, two weeks after the lawsuit was filed, the Kentucky Motor Vehicle Commission announced Auto Plaza USA would have to pay $600,000 in taxes, penalties and fees. The commission began its investigation in May 2017.
The agreement was done to hold Auto Plaza “rightfully accountable for their actions,” John-Mark Hack, commissioner of the Department of Vehicle Regulation, said in 2017.
Auto Plaza USA closed in late 2017, according to the attorney general’s office. When filing the lawsuit, Beshear called the conduct from Auto Plaza USA “egregious.”