South Dakota Tax Changes - October 2024
Week Of 10.07.2024
The U.S. Supreme Court has denied a petition for certiorari in a case involving South Dakota's use tax statute.
The case involved an out-of-state company that brought construction equipment into South Dakota to perform 30 drain tile projects between 2017 and 2020. The South Dakota Supreme Court upheld the use tax statute, finding that it did not violate the Due Process Clause or the Interstate Commerce Clause of the U.S. Constitution. The court found that the statute satisfied all four prongs of the Complete Auto Transit, Inc. v. Brady test. The U.S. Supreme Court was asked to review whether South Dakota's imposition of use tax on the fair market value of movable construction equipment violated the U.S. Commerce Clause's fair apportionment requirement.
Week Of 09.30.2024
South Dakota Initiated Measure 28 would prohibit tax on food, drinks.
South Dakota voters will decide on November 5, 2024, whether to eliminate the state sales and use tax on anything sold for human consumption, excluding alcoholic beverages and prepared food. "Prepared food" includes food that is sold heated or with utensils. The South Dakota Attorney General states that South Dakota law does not define "human consumption," but its common definition includes more than food and drinks. If approved, municipalities could continue to impose such taxes.
Week Of 10.07.2024
South Dakota Sales & Use Taxes—U.S. Supreme Court action—petition for certiorari denied in South Dakota case.
The U.S. Supreme Court has denied a request to review a decision in which the South Dakota Supreme Court affirmed that a use tax statute, as applied to an out-of-state company that brought construction equipment into South Dakota to perform about 30 drain tile projects between 2017 and 2020, did not violate the Due Process Clause or the Interstate Commerce Clause of the U.S. Constitution because it satisfies all four prongs of the Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977) test. The U.S. Supreme Court had been asked to review whether South Dakota's imposition of use tax on the fair market value of movable construction equipment violated the U.S. Commerce Clause's fair apportionment requirement. (Ellingson Drainage, Inc. v. S.D. Dept. of Rev., S.D. S. Ct., Dkt. No. 30280, 02/07/2024, cert. denied, U.S. S. Ct. Dkt. No. 23-1202, 10/07/2024.)
Week Of 09.30.2024
South Dakota Sales & Use Taxes—South Dakota Initiated Measure 28 would prohibit tax on food, drinks.
An initiated measure on South Dakota's November 5, 2024, general election ballot asks voters whether to eliminate the state sales and use tax on anything sold for human consumption, excluding alcoholic beverages and prepared food. "Prepared food" includes food that is sold heated or with utensils. The South Dakota Attorney General's explanation of the initiated measure states that South Dakota law does not define "human consumption," but its common definition includes more than food and drinks. If approved, municipalities could continue to impose such taxes. (Initiated Measure 28 Prohibiting Taxes on Anything Sold for Human Consumption, SD Attorney General, 05/21/2024; An Initiated Measure Prohibiting Taxes on Anything Sold for Human Consumption, SD Secretary of State, 04/25/2023.)
Week Of 10.07.2024
South Dakota Sales & Use Taxes—U.S. Supreme Court action—petition for certiorari denied in South Dakota case.
The U.S. Supreme Court has denied a request to review a decision in which the South Dakota Supreme Court affirmed that a use tax statute, as applied to an out-of-state company that brought construction equipment into South Dakota to perform about 30 drain tile projects between 2017 and 2020, did not violate the Due Process Clause or the Interstate Commerce Clause of the U.S. Constitution because it satisfies all four prongs of the Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977) test. The U.S. Supreme Court had been asked to review whether South Dakota's imposition of use tax on the fair market value of movable construction equipment violated the U.S. Commerce Clause's fair apportionment requirement. (Ellingson Drainage, Inc. v. S.D. Dept. of Rev., S.D. S. Ct., Dkt. No. 30280, 02/07/2024, cert. denied, U.S. S. Ct. Dkt. No. 23-1202, 10/07/2024.)
Week Of 09.30.2024
South Dakota Sales & Use Taxes—South Dakota Initiated Measure 28 would prohibit tax on food, drinks.
An initiated measure on South Dakota's November 5, 2024, general election ballot asks voters whether to eliminate the state sales and use tax on anything sold for human consumption, excluding alcoholic beverages and prepared food. "Prepared food" includes food that is sold heated or with utensils. The South Dakota Attorney General's explanation of the initiated measure states that South Dakota law does not define "human consumption," but its common definition includes more than food and drinks. If approved, municipalities could continue to impose such taxes. (Initiated Measure 28 Prohibiting Taxes on Anything Sold for Human Consumption, SD Attorney General, 05/21/2024; An Initiated Measure Prohibiting Taxes on Anything Sold for Human Consumption, SD Secretary of State, 04/25/2023.)