Minnesota case law summary by Attorney Richard Clem: sales tax, software.

LumiData, Inc., v. Commissioner of Revenue. MN sales tax, software

In this appeal from the Minnesota Tax Court, the Minnesota Supreme Court held:

1. The taxpayer's software sales are taxable as "prewritten computer software" as defined in Minn. Stat. 297A.61 because the taxpayer did not separately state its customization charges.

2. Because the taxpayer did not establish reasonable cause to believe that the software sales were nontaxable, the Commissioner did not clearly err by assessing late-filing and late-payment penalties.

No. A14-0254 (Minn. Sept. 10, 2014).

Please see the original opinion for the court's exact language.

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Richard P. Clem is an attorney and continuing legal education (CLE) provider in Minnesota. He has been in private practice in the Twin Cities for 25 years. He has a J.D., cum laude, from Hamline University School of Law in St. Paul and a B.A. in History from the University of Minnesota. His reported cases include: Asociacion Nacional de Pescadores a Pequena Escala o Artesanales de Colombia v. Dow Quimica de Colombia, 988 F.2d 559, rehearing denied, 5 F.3d 530 (5th Cir. 1993), cert. denied, 510 U.S. 1041 (1994); LaMott v. Apple Valley Health Care Center, 465 N.W.2d 585 (Minn. Ct. App. 1991); Abo el Ela v. State, 468 N.W.2d 580 (Minn. Ct. App. 1991).

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