Interstate Traffic Signs, Inc. v. Comm’r of Revenue
Annotate this CaseInterstate Traffic Signs, Inc. (“Interstate”) rented traffic control equipment to contractors working on road construction projects. Prior to April 2010, Interstate charged sales tax on the equipment rental charge but did not charge tax on its delivery and “pick-up” charges, which included costs associated with retrieving and returning the rental equipment to Interstate. Beginning in April 2010, Interstate charged sales tax on the delivery charges but did not charge tax on pick-up charges. After an audit, the Commissioner of Revenue assessed an additional $37,838 in sales and use tax, determining that Interstate should have been charging sales tax on its pick-up charges. The tax court upheld the Commissioner’s assessment, concluding that the pick-up charge was subject to sales tax pursuant to Minn. Stat. 297A.62(1). The Supreme Court affirmed, holding that pick-up charges fall within the definition of “sales price” under section Minn. Stat. 297A.61(7), making those charges subject to sales tax under section 297A.62(1).
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