Certainly the most publicized developments in Kentucky tax law during the current survey period were those legislative reforms adopted by the special session of the Kentucky General Assembly in early 1979. Responding to demands for relief from rising tax burdens, the legislature enacted H.B. 44 to limit the impact of inflation on property taxes. These legislative changes were part of a nationwide wave of tax reform proposals engendered by voter approval of California's Proposition Thirteen in June, 1978. In addition to H.B. 44, this article will examine selected judicial decisions involving the taxation of intercorporate dividends, the sales and use tax, the occupational license tax, and statutory provisions for allocation of corporate income.