By Charles Capouet and Charlie Kearns
The Kentucky Supreme Court held that the interpretation of inheritance tax statutes by the Kentucky Board of Tax Appeals was not entitled to Chevron deference. Deference is given only to an administrative agency’s interpretation of the statutes which it administers. The Board is merely a reviewing tribunal; it is not an administrative agency charged with implementing Kentucky’s inheritance tax statutes. The state supreme court concluded, “if any deference is to be given, it is to the Department’s formal interpretation of a statute that it administers[,]” and, therefore, “no deference is given to the Board’s interpretation of tax statutes.” Estate of McVey v. Ky. Dep’t of Revenue, No. 2014-SC-000013-DG (Ky. Dec. 17, 2015).