Kentucky Department of Revenue v. Summer-sherrmann, Inc.

CLAY, Commissioner.

This is an appeal from a judgment setting aside an order of the Kentucky Board of Tax Appeals which sustained an assessment of additional sales taxes against ap-pellee. The basis of the ruling was that all sales involved were interstate sales exempt from the tax.

Appellee is engaged in the business in Louisville of selling both new and used motor vehicles to residents and nonresidents of Kentucky. Under KRS 139.470 the Department of Revenue in its regulations recognizes that sales in interstate commerce are exempt from the sales tax imposed by KRS 139.200. Regulation SU-44,…