Revenue Cabinet, Commonwealth v. Amax Coal Co.

STEPHENS, Chief Justice.

The issue to be determined on this appeal is whether the statutory sales and use tax exemption for machinery “used directly” in the manufacturing process is applicable to certain items owned by the respondents; Amax Coal Company and Gibraltar Coal Corporation, H and A Coal Company, and Harbert Construction Corporation and Star Fire Coals, Inc.

KRS 139.480(8) provides an exemption from sales and use taxes on “[m]achinery for new and expanded industry.” We are concerned here with the interpretation of the statutory definition of such machinery. KRS 139.170 states:

“Machiner…