Opinion ID: 1450018
Heading Depth: 1
Heading Rank: 5

Heading: Separate Business

Text: It was error to determine that Murphy's locations were predominantly retail and not to consider the operations as two separate businesses. No evidence was presented that the locations at issue were predominantly retail. The stipulations indicate that the aggregate number of transactions pertaining to manufacturing or photo processing activities exceeds the aggregate number of retail transactions in any given year. We must reject the position of the Revenue Cabinet, despite the excellent brief and skillful oral argument of its counsel. This Court is very familiar with the Kentucky authorities cited by the Cabinet's counsel, but such authorities cannot be properly applied in the context of this case. This case may be considered by some to be a gap or loophole in the law. Practitioners should not overreact because the legislature can easily choose to close a tax exemption window of opportunity either in whole or in part. Certainly the legislature could determine that a volume of employment requirement should be inserted into the statute. The legislature could define plant facilities differently or specifically address combined manufacturing and retail sales facilities. In this matter, we must conclude that the action of the Revenue Cabinet was arbitrary, capricious and a misinterpretation of the statute as it exists at this time. Consequently, the opinion of the Court of Appeals is reversed and this matter is remanded to the circuit court with directions to enter a judgment in favor of Camera Center, and to grant the appellants the refund sought, as well as appropriate interest, if any, or other relief which may be proper. LAMBERT, C.J., KELLER, STUMBO and WINTERSHEIMER, JJ., concur. GRAVES, J., dissents by separate opinion in which COOPER and JOHNSTONE, JJ., join.