Oops! Board Holds PVA Lacks Statutory Authority to Correct Error

In Union Underwear Company, Inc., d/b/a Fruit of the Loom v. Russell County Property Valuation Administrator[1], the Russell County Property Valuation Administrator ("PVA") issued alleged "omitted property" tax bills to the taxpayer for tax years 2009-2014.  The Kentucky Board of Tax Appeals held that the PVA was without statutory authority to issue a "retroactive" assessment.  The case involved industrial revenue bonds ("IRBs").  Kentucky law permits local governments such as counties and cities to issue IRBs to finance certain types of projects, such as manufacturing facilities that will increase employment and other economic activity.  The IRB structure reduces a portion of the real and tangible personal property taxes otherwise payable by the taxpayer to local and state government.  Kentucky law provides that real and tangible personal property held by a county or city is exempt from property tax (with the exception of an economically insignificant state leasehold