Department of Revenue v. Indian Head Mining Co.

PALMORE, Justice.

The question here is whether a piece of equipment used in connection with a coal-mining operation is exempt from the use tax (KRS 139.310) under KRS 139.480(8) and KRS 139.170.

KRS 139.480(8) excludes from the tax “Machinery for new and expanded industry,” which is defined by KRS 139.170 as “that machinery used directly in the manufacturing process,” etc.

The appellee is engaged in a form of deep-mining called “punch-mining.” A bulldozer and end-loader, or “wheel loader,” are used to clear the overburden from a seam of coal, which is then undercut, blasted loose, and removed to…