Tax Court Digest: Aug. 9, 2023

Minnesota Lawyer//August 10, 2023

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Minnesota Lawyer//August 10, 2023

Sales Tax

Attorney Fees

After summary judgment was entered in favor of appellant on its challenge to an order assessing sales tax, appellant filed an application for attorney’s fees. The Commissioner objected to the award of attorney’s fees on the grounds its actions were substantially justified. The Tax Court denied the application for fees, but awarded costs, concluding that the tax order had a reasonable basis in law and was substantially justified, noting that, although the documents appellant produced in compliance with the discovery order ultimately vindicated its position, appellant refused to provide them during the audit, even though doing so evidently would have obviated the tax order entirely.

9516-R Bugg Prods. LLC v. Comm’r of Revenue