Kentucky Supreme Court Rejects Taxpayer’s Property Exemption Application

The Kentucky Supreme Court issued a judgment reversing the Court of Appeal’s decision granting taxpayer a property tax exemption as a religious institution. The question before the court was whether taxpayer, a nonprofit corporation that provides financial services to churches, meets the definition of a religious institution for tax exemption purposes. The Court held that institutions of religion mean churches, religious sects, societies, or denominations, concluding that taxpayer does not fit this definition as it is a separate entity supporting churches rather than a church itself. The court emphasized that tax exemptions must be strictly construed and that taxpayer’s corporate ...