Opinion ID: 1298687
Heading Depth: 1
Heading Rank: 9

Heading: Gasoline Excise Tax

Text: In July 2001, the parties filed cross-motions for partial summary judgment. AOC asserted that under the in lieu provision of the gasoline excise tax statute, it was exempted from paying the corporate franchise tax. See Minn.Stat. § 296.20 (1990). The statute provides, [g]asoline excise taxes shall be in lieu of all other taxes imposed upon the business of selling or dealing in gasoline. Id. In response, the Commissioner argued that the in lieu provision of the statute applies only to taxes specifically imposed upon the gasoline industry; therefore, AOC is subject to both the gasoline excise tax and the corporate franchise tax because the corporate franchise tax is not imposed upon the gasoline industry in particular. The tax court issued an order denying AOC's motion for summary judgment and granted the Commissioner's motion for summary judgment. The court found that the in lieu provision applies only to taxes imposed specifically on the gasoline industry. Thus, the court concluded that the corporate franchise tax is not in lieu of the gasoline excise tax.