Commonwealth, Revenue Cabinet v. Kenington Sales, Inc.

HUDDLESTON, Judge.

Kentucky’s Revenue Cabinet appeals a summary judgment granted by Franklin Circuit Court to Kenington Sales, Inc. The judgment was based on the Revenue Cabinet’s failure to comply with statutory procedure in assessing sales taxes alleged to be due as the result of the sale of thoroughbred yearlings. We affirm.

In the late 1970’s and early 1980’s, Ken-ington served as one of Kentucky’s major thoroughbred auction companies. Kening-ton was a wholly-owned subsidiary of the Kentucky Horse Center (hereinafter “KHC”) which owned the facility in which Kenington conducted its sales.…