Hancock v. Prestonsburg Indus. Corp.Annotate this Case
Prestonsburg Industrial Corporation (PIC) was founded in 1968 as a private, nonprofit corporation to attract business and industry to the City for economic development. To accomplish this goal, PIC would buy property, make improvements, then sell the property to various businesses. The profits were rolled back into PIC for additional purchases and improvements. In 2001, PIC purchased a parcel from the City. The county property valuation administrator then sought to tax the property. PIC claimed it was tax exempt and filed for a tax exemption from the Kentucky Revenue Cabinet. Revenue denied the application. The board of tax appeals affirmed, concluding that the property was not tax exempt under section 170 of the Kentucky Constitution, which exempts institutions of purely public charity from paying ad valorem taxes. The circuit court reversed and found the property tax exempt. The court of appeals affirmed, concluding that PIC was a purely charitable organization as defined under section 170 and was thus exempt from taxation. The Supreme Court reversed, holding that the evidence did not establish that PIC was a purely public charity or that its property was employed for a purely charitable purpose. Remanded.