Black Hills Truck & Trailer, Inc. v. South Dakota Department of Revenue

KERN, Justice.

[¶ 1.] The South Dakota Department of Revenue subjected Black Hills Truck & Trailer and other corporations owned by North American Truck &• Trailer, Inc., (collectively Taxpayers) to a sales-and-use-tax audit. The audit uncovered errors regarding Taxpayers’ reporting of use tax. The Department assessed Taxpayers for unpaid use taxes. Taxpayers paid the assessment under protest and demanded an administrative hearing. At the hearing, Taxpayers argued that the shop supplies assessed were exempt from use tax because they were purchased for resale to customers. Taxpayers offered an…