Department of Revenue v. State Contracting & Stone Co.

JONES, Justice.

The question presented is whether certain pollution control equipment and hot-mix storage bins used by State Contracting and Stone Co., Inc. are exempt from sales and use tax as “machinery used in new and expanded industry” as defined in KRS 139.-170.1

State Contracting and Stone is a corporation engaged in quarrying limestone at Hartford, Kentucky, and manufacturing asphalt at Owensboro, Kentucky. After the limestone is quarried it is broken into various sizes by a “crusher”. It is then transported by State Contracting and Stone to its Owensboro plant where it is manufactured…