Opinion ID: 1990251
Heading Depth: 2
Heading Rank: 3

Heading: Equal Protection and Other Rights

Text: The Appellees also argue that the tax amendments violate their equal protection rights and other rights under the Kentucky Constitution because other corporations were allowed to amend their returns and were granted tax refunds. However, the controlling fact in this case is the government's power to tax and to enact legislation that controls the revenue stream. Since a taxpayer has no immunity from taxation, which is not a contractual liability but rather the shared costs of the benefits of government, no fundamental right is involved. Carlton, 512 U.S. at 33-34, 114 S.Ct. 2018. Rather, statutes or practices that have the effect of distinguishing between entities solely on an economic basis are presumed to be valid and... generally comply with federal equal protection requirements if the classifications that they create are rationally related to a legitimate state interest. Durham v. Peabody Coal Co., 272 S.W.3d 192, 195 (Ky.2008) (citing City of Cleburne, Texas v. Cleburne Living Center, 473 U.S. 432, 440, 105 S.Ct. 3249, 87 L.Ed.2d 313 (1985)). The analysis is the same under the Kentucky Constitution. Id. This rational basis test is the same as required under due process for economic legislation, and, as discussed above, the 2000 amendments to the tax statute clearly satisfy it. The question in all matters falling short of a fundamental right, and particularly to economic or taxation legislation, is whether there is a legitimate governmental purpose for the action, and whether the means used to accomplish it rationally relates to that purpose. Having found that such a purpose exists in this case, there is no merit to the Appellees' claims.