Minnesota Liquor Store Loses Challenge to Sales Tax Assessment

A Minnesota liquor retailer owes extra sales tax and penalties because the store underreported its taxes by more than 25 percent, the state high court ruled Wednesday.

The Minnesota statute of limitations on assessing taxes owed is three and a half years from the return filing date. However, if the state commissioner determines a taxpayer underreported by more than 25 percent, the statute of limitations extends to six and a half years.

The state’s tax court did not make an error when it determined in the liquor retailer’s case that the state revenue commissioner correctly extended the statute of limitations, ...