Olson Equipment Company v. City of Minneapolis

Peterson, Justice.

The issue in this case is whether leased construction equipment is “inventory” of the owner-lessor within the meaning of a Minnesota personal property tax exemption. Minn. St. 272.02(11) (a).

Olson Equipment Company, the appellant taxpayer, is a manufacturer’s representative and distributor of heavy construction equipment, engaged in both the selling and leasing of new and used equipment. Leased equipment often is sold to the lessee pursuant to a contemporaneous oral agreement that if the lessee subsequently elects to buy the equipment a credit will be made on the purchase…