Monday, May 17, 2010
Floyd County Company Gets Appeal
KENTUCKY....
By a 2-1 vote, the U.S. 6th Circuit Court of Appeals has ruled U.S. District Judge David Bunning erred in ruling for the Internal Revenue Service in a tax dispute with Worldwide Equipment Inc., of Prestonburg, a Floyd County company. Worldwide sued the federal government in 2004, challenging a $119,302 tax levied on a type of truck it sold. The IRS countersued, saying Worldwide owed $1.1 million for failing to pay taxes on multiple trucks sold from 1999-2003. The ruling has reinstated a challenge on how the federal government taxes trucks used to haul coal from mines to loading areas. Being questioned is whether the trucks were designed primarily for off-road use, which would exempt them from the tax, or designed for use on state and federal highways, in which case the tax would apply. Judge Helene White noted for the majority opinion that Worldwide sold 98 coal haulers between 1998 and 2004, with highway use accounting for about five percent of the trucks' time on the road. Senior Judge Gilbert Merritt dissented, saying the trucks almost always must use the Interstate and other public roads because of the lack of a tipple station at most Kentucky mines.
By a 2-1 vote, the U.S. 6th Circuit Court of Appeals has ruled U.S. District Judge David Bunning erred in ruling for the Internal Revenue Service in a tax dispute with Worldwide Equipment Inc., of Prestonburg, a Floyd County company. Worldwide sued the federal government in 2004, challenging a $119,302 tax levied on a type of truck it sold. The IRS countersued, saying Worldwide owed $1.1 million for failing to pay taxes on multiple trucks sold from 1999-2003. The ruling has reinstated a challenge on how the federal government taxes trucks used to haul coal from mines to loading areas. Being questioned is whether the trucks were designed primarily for off-road use, which would exempt them from the tax, or designed for use on state and federal highways, in which case the tax would apply. Judge Helene White noted for the majority opinion that Worldwide sold 98 coal haulers between 1998 and 2004, with highway use accounting for about five percent of the trucks' time on the road. Senior Judge Gilbert Merritt dissented, saying the trucks almost always must use the Interstate and other public roads because of the lack of a tipple station at most Kentucky mines.
# posted by Homer Owens @ 4:47 PM 
