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Sales Tax At SD Hunting Lodge Argued To Supreme Court

March 25, 2014, 5:35 PM by Ben Dunsmoor

Sales Tax At SD Hunting Lodge Argued To Supreme Court
VERMILLION, SD -

The South Dakota Supreme Court is considering a case that could impact the way hunting lodges charge sales tax.

An attorney for central South Dakota hunting lodge Paul Nelson Farm argues that his client pays sales tax on the hunting packages it sells which includes the food, ammunition and beverages it buys to provide to guests.

But the South Dakota Department of Revenue says the lodge needs to pay sales tax on those items up front because they are not directly resold to the hunters and are used to provide the entire experience.

"The department's position is Paul Nelson Farms is using those items to provide the hunting experience of a lifetime,” John Richter with the South Dakota Department of Revenue argued Tuesday.

"There's absolutely no dispute that part of the purchase price that you get when you got to Paul Nelson Farms is to provide the meals you have while you're there and to provide the hunting shells that are there as well,” Justin Bell, an attorney for Paul Nelson Farm, said.

Bell argues that if the lodge followed the South Dakota Department of Revenue argument, the hunting lodge would essentially pay double taxes.

The justices will issue a ruling at a later date.

Read the case briefs by clicking here

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