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State Supreme Court Frees Lodge From Tax Burden

May 22, 2014, 10:16 AM


The South Dakota Supreme Court has freed a hunting lodge near Agar from taxes imposed after a Department of Revenue audit.

The high court decision states that food, beverages and ammunition purchased by the Paul Nelson Farm for resale to customers did not qualify for tax and interest.

The disputed taxes and interest amount to about $17,400.

The Paul Nelson Farm offers hunting packages that include guided hunting, lodging, ammunition, bird cleaning and packaging, buffet meals and beverages.

A lower court had relieved the lodge of its tax liability on food, but not the other categories. The Department of Revenue challenged the ruling, saying the lodge was the end consumer of the goods.

Lodge owner Paul Nelson is still processing the Thursday decision but says he's pleased with the result.

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