The Minnesota Tax Court held that  a tobacco distributor was entitled to a refund of Minnesota tobacco tax that it paid on federal excise tax (FET) that was passed through by the tobacco manufacturer, but only if the FET was separately stated on the manufacturer’s invoice. The court looked to the plain language of the statute, and decided that the FET is not included in the “wholesale sales price,” as statutorily defined, upon which the tobacco tax is imposed. However, if the FET is not separately stated on the invoice from the manufacturer to the wholesaler, then the entire amount is taxable.

Winner Tobacco Wholesale, Inc. v. Commissioner of Revenue, Dkt. No. 9049-R (Minn. Tax Ct., Aug. 6, 2018)