A Bin is a Bin

If it looks like a grain bin and it smells like a grain bin, it gets taxed as a grain bin. The Minnesota Supreme Court agreed with a lower court’s decision that Custom Ag Service of Montevideo’s grain bins should be subject to use tax.

The bins were purchased from out of state to be used to create a grain-drying system for clients. Custom Ag argued that because they were used by the final consumer as a part of the system they should not be taxed.

Justice Paul Anderson in the majority opinion said, “We conclude that the premise underlying Custom Ag’s arguments is problematic because it fails to recognize that for the purposes of the use tax, the relevant question is whether Custom Ag purchased and used grain bins in Minnesota