Loel Lust Chevrolet Co. v. Commissioner of Revenue

HANSON, Presiding Judge.

The issue involved in this proceeding is whether or not labor performed by a retail sales and service garage in replacing and repairing defective automobile parts pursuant to the manufacturer's warranty is a taxable transaction under the South Dakota Sales Tax Act. The Commissioner of Revenue determined that credits received by the Loel Lust Chevrolet Company of Aberdeen from General Motors for warranty labor constituted taxable gross receipts. The taxpayer appealed to Circuit Court which determined such warranty labor was not taxable and the State has appealed…