- Ellingson Drainage Inc., based in Minnesota, was found liable for over $75,000 in unpaid use taxes and interest by the South Dakota Supreme Court.
- The company was required to pay a use tax on equipment it brought into South Dakota for use in drainage projects.
- South Dakota imposed a use tax because the company didn’t pay sales tax when purchasing the equipment out of state.
- The South Dakota Department of Revenue assessed a 4.5% use tax on the equipment’s value, totaling approximately $60,000, along with about $15,000 in interest.
- The company argued that the use tax statute was unfair and violated constitutional clauses, but the court disagreed.
- The court determined that the use tax was not a burden on interstate commerce based on a four-part standard.
- The court dismissed the company’s argument that only property permanently remaining in the state should be subject to use tax.
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
