Court Opinion

ID: 9678414
Source: CourtListenerOpinion
Date Created: 2023-08-24 06:19:06.859216+00
Date Added: 2024-06-11T18:17:04.341451
License: Public Domain

WINTERSHEIMER, Justice,
concurring in part and dissenting in part.
I respectfully dissent in regard to the imposition of a two-year statute of limitations rather than a four-year statute of limitations on the application for refund. I concur in the result achieved by the majority opinion insofar as it requires a refund of tax pursuant to Davis v. Michigan, Dept. of Treasury, 489 U.S. 803, 109 S.Ct. 1500, 103 L.Ed.2d 891 (1989), and insofar as it treats attorney fees.
KRS 134.590(6) is not the appropriate statute because it relates only to ad valorem taxes and to those which are unconstitutional. *336Refunds pursuant to this statute cover the situation as to local tax districts. Board of Education of Fayette County v. Taulbee, Ky., 706 S.W.2d 827 (1986). This situation does not involve ad valorem taxes and there is no finding in the majority opinion or elsewhere that the tax itself is unconstitutional. Therefore, I do not believe Chapter 134 applies.
The tax in question is an income tax. KRS 141.235(2) states that any tax collected pursuant to the provisions of KRS Chapter 141, the income tax, may be refunded or credited in a manner provided in KRS 134.580 if the claim for refund or credit has been made within four years of the due date of the return or the date the tax was paid, whichever is later. Consequently, pursuant to KRS 134.580 and KRS 141.235, the refund may be paid to those who file for such a refund within four years of the due date or the payment of the tax.
It is my view that the status of taxation on pension funds in Kentucky remains a patchwork. The cases as presented to this Court involve the allegations of constitutionality regarding exemptions and not the direct imposition of the tax. There is a significant difference in the imposition of a tax and relief or exemption from the effects of the tax. The fairness of taxation on any pension funds, whether it be governmental or private, should be addressed to the General Assembly. It would be a violation of separation of powers between the judicial and legislative branches of government for this Court to intrude in such an area. Consequently, the issue of fairness of taxation on any pension remains with the General Assembly. Currently there is no legal action pending before this Court to consider whether the taxation of the remaining group of private pension funds is arbitrary or otherwise unconstitutional.
STUMBO, J., joins in this dissent.