Barnes v. Department of Revenue – Case Brief Summary (Kentucky)

In Barnes v. Department of Revenue, Ky. App., 575 S.W.2d 169 (1978), the Court held that houseboats of a marina operator that were "registered . . . as livery or boats for hire and . . . leased on a weekly basis" were exempt from use tax under KRS 139.483. 575 S.W.2d at 171.

The Court held that the statute has a general application to all ships and vessels which are used primarily in the transportation of property or in the conveyance of persons for hire. Barnes also held that the taxpayer's rental of the houseboats to other persons was a use of those houseboats that constituted a conveyance of persons "for hire" -- thus qualifying for and subject to the exemption. Id.