Commonwealth ex rel. Ross v. Lee's Ford Dock, Inc.

PALMORE, Justice.

The question here is whether sales or use taxes are collectible on gasoline sold for the operation of motor boats. The Kentucky Board of Tax Appeals and the Franklin Circuit Court held that they are not. This court concurs.

KRS 138.220 levies an excise tax (now 9% per gallon) on all gasoline received in this state. It is to be paid by the dealer, who of course includes it in his price to the consumer. Section 230 of the Kentucky Constitution requires that all “money derived from excise or license taxation relating to gasoline and other motor fuels” be devoted exclusively to…