Midcontinent Broadcasting Co. v. State, Department of Revenue

MILLER, Justice.

Midcontinent Broadcasting and the South Dakota Broadcasters Association (hereinafter referred to collectively as Midconti-nent) appeal from a circuit court decision which affirmed a declaratory ruling of the South Dakota Department of Revenue (Department). Generally, the ruling provided that radio and television stations were obligated to pay a use tax on the amount paid for certain syndicated programming. We reverse.

FACTS

In 1985, Department conducted sales and use tax audits of Midcontinent. The reoccurring issue in these audits related to the taxability of payments made to…