South Dakota Supreme Court Upholds Use Tax on Out-of-State Construction Equipment

• South Dakota State Supreme Court upheld the assessment of use tax on construction equipment purchased out-of-state and brought into South Dakota
• Taxpayer challenged the constitutionality of the assessment, claiming it was unreasonable for equipment used in the state for a short time only
• Court disagreed, stating taxpayer enjoyed the same benefits as any other person or business in the state
• Taxpayer paid use tax on equipment not subject to sales or use tax in another state
• Taxpayer can bring equipment back to work on jobs in South Dakota without being subject to additional use tax.

Source: kpmg.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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