On April 25, 2022, the Minnesota Tax Court ruled that a credit card surcharge is subject to sales and use tax. Stated in Kurt W. Martin v COR, “[The taxpayer] appeals from the portion of the Tax Order determining that a credit card surcharge is subject to sales and use tax pursuant to Minnesota Statutes section 297A.62, when the existence and amount of that surcharge is disclosed to lodging customers as a separate amount.” The taxpayer, a sole proprietor, operates real properties as vacation rentals and sells vacation properties through third parties. The taxpayer inflicts a 4% surcharge to cover the card processing fees to compensate his credit card fees. The Tax Court of Minnesota determined that the surcharge is part of the statutory definition of “sales price” and should not be deducted from the sales price. Furthermore, the Tax Court ruled that the fee did not meet the requirements for the exemption of “interest, financing, and carrying charges from credit extended on the sale of personal property or services, if the amount is separately stated on the invoice, bill of sale, or similar document given to the purchaser.” The taxpayer, The taxpayer’s judgment motion has been denied and the Commissioner’s judgment motion has been granted. (Minnesota Tax Court, Kurt W. Martin v Commissioner of Revenue, Docket No. 9499-S, effective April 25, 2022).