Revenue Cabinet, Commonwealth v. Wyatt

OPINION

SCHRODER, Judge.

This appeal addresses whether goodwill and a covenant not to compete constitute “any interest in a corporation,” pursuant to KRS 154.655(6)(c) of Kentucky’s Enterprise Zone Act. The McCracken Circuit Court found that they do, and after reviewing the law, we affirm regarding the goodwill but reverse regarding the covenant not to compete, and remand for recomputation of the tax refund awarded the appellees.

Michael Wyatt was the president and sole shareholder of the subehapter S corporation Matweld, Incorporated, which was located in an enteiprise zone. On July 1, 1991,…