Kentucky - Nonresident corporate limited partner has nexus.

Revenue Cabintet v. Asworth Corporation, HT-Form Inc. and D Aviation Services, Inc. Ky Ct. App (11/20/09) The Kentucky Court of Appeals affirmed a circuit court's previous ruling, agreeing that an out-of-state corporation had acquired nexus in Kentucky soley due to its investment in a pass-through entit as a 99% limited partner. The court agreed that the corporate limited partner had acquired nexus with the State through the partnership that did business within the State, as Kentucky recognizes the flow-through nautre of partnerships and accordingly, imposes state inocme tax upon partners rather than upon the partnership itself. The court also agreed that the corproation's derivation of income from a partnership doing business within and outside the State satisifed the Commerce Clause substantial nexus test, as well as Due Process Clause minimum contacts requirement.