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Mark A. Loyd Discusses 'Chegg' Decision's Positive Impact for Taxpayers

09.11.2014

BGD partner Mark A. Loyd discussed the recent Chegg v. Finance and Administration Cabinet, Department of Revenue decision in a recent issue of State Tax Notes.

About Chegg

Recently, the Department of Revenue was denied a request to order a company to file bind in a case involving a property tax exemption on appeal from the state Board of Tax Appeals. In the case in question, Chegg v. Finance and Administration Cabinet, Department of Revenue, the Board of Tax Appeals determined that textbooks held in Kentucky warehouses were not eligible for property tax exemption when the books had a “more or less permanent location” in the state because the books were leased to students and returned to the warehouse after the lease expired.

The ruling was appealed by the taxpayer to the circuit court, at which point the Department of Revenue requested the taxpayer post bond or alternative security during the pendency of appeal. The circuit court declined to reconsider its ruling, because “the posting of supersedeas bond is only applicable for appeals to be taken from this Court and not to this Court.” The court of appeals looked at the circuit court’s decision and the statutes governing

Positive for Taxpayers

Loyd describes the Chegg decision as a positive for taxpayers, stating, “The decision clearly says that a petition for review can be filed without posting bond.” He goes on to say that because the appellate courts appeared to focus on the fact that the trial court did not enter an order staying the final order of the Board of Tax Appeals, it’s unclear whether the department “can come after the taxpayer for the tax while the appeal is still pending.”

Loyd is a regular contributor to State Tax Notes.

To read his full remarks, they can be found on page 15 of State Tax Notes for August 25, 2014. http://www.bgdlegal.com/clientuploads/Publications/TaxTalk%20July%202014.pdf

To learn more about Mark A. Loyd and his practice, please visit his profile.

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