Mississippi Department of Revenue v. Johnny Reb Aviation, LLC

MAXWELL, J.,

for the Court:

¶ 1. The Mississippi Department of Revenue (MDOR) determined Johnny Reb Aviation LLC (Johnny Reb), an airplane dealership, was also chartering the airplanes it was offering for sale, which meant it had to pay a use tax. Johnny Reb disagreed and appealed to the chancery court.

¶ 2. The only question before the chancellor was whether MDOR’s decision to assess a use tax was arbitrary and capricious or unsupported by substantial evidence. And in this case, the chancellor confirmed that substantial documentary evidence — including Johnny Reb’s operating agreement, federal…