Revenue Cabinet v. Kentucky-American Water Co.

WINTERSHEIMER, Justice.

This appeal is from a decision of the Court of Appeals which affirmed the judgment of the circuit court holding that the 1,197 miles long new water distribution system from a water treatment plant to private consumers was part of an integrated plant manufacturing process entitling the water company to a sales and use tax exemption.

The primary issue is whether the water distribution system constitutes an integrated plant manufacturing process under the statute. The necessary sub questions are whether the water distribution system and related parts and service lines are…