South Dakota Supreme Court Upholds Use Tax Ruling on Infrastructure Management Company

• Ellingson Drainage Inc. was found liable for over $75,000 in unpaid use taxes and interest in South Dakota
• The company was required to pay a use tax on equipment brought into the state for drainage projects
• South Dakota imposed a 4.5% use tax on the equipment’s value, totaling approximately $60,000
• The company argued that the use tax was unfair, but the court disagreed
• The court determined that the use tax was not a burden on interstate commerce
• Ellingson Drainage Inc.’s argument that only property permanently remaining in the state should be subject to use tax was dismissed
• The U.S. Supreme Court declined to review the case, upholding the South Dakota Supreme Court’s decision

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.

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