Burlington Northern Railroad v. Commissioner

OPINION

BLATZ, Chief Justice.

The Commissioner of Revenue (Commissioner) appeals from a tax court decision granting summary judgment to Burlington Northern Railroad Company (BN) on its claim for a refund of sales and use taxes paid to the State of Minnesota on transportation fuel purchases. The tax court used a “competitive mode” comparison class consisting of rail carriers, motor carriers, air carriers, and barges to find that the state sales and use tax on rail carrier fuel is discriminatory. The tax court reasoned that the use of petroleum excise tax revenues to maintain public highways and…