In Re the State Sales & Use Tax Liability of Townley

I respectfully dissent. This circuit court’s decision should be affirmed regarding (1) National’s fuel charges and (2) funds it retained from the sale of PAI. These proceeds fit within statutory exemptions in the South Dakota sales tax law.

The Department, and the majority of this Court, argue that National is in the business of renting ears, the gross receipts of which are subject to sales tax under SDCL 10-45-5. It is contended by the majority opinion that gross receipts are defined by SDCL 10-45-1(2) as the amount received in consideration of retail sales without deduction for any other…