Black Hills Truck & Trailer, Inc.Annotate this Case
The Department of Revenue subjected several corporations owned by North American Truck & Trailer, Inc. (collectively, Taxpayers) to a sales-and-use-tax audit, which uncovered errors regarding Taxpayers’ reporting of use tax. Thereafter, the Department assessed Taxpayers for unpaid use taxes. Taxpayers paid the assessment under protest and requested an administrative hearing. At the hearing, Taxpayers argued that the shop supplies assessed were exempt from use tax and offered exhibits in support of their position. The hearing examiner declined to consider a sales invoice offered by Taxpayers demonstrating a typical transaction that involved the cost of supplies because Taxpayers submitted it more than sixty days after the audit began, in violation of S.D. Codified Laws 10-59-7. The Supreme Court affirmed, holding that the hearing examiner did not err when it (1) affirmed the Department’s refusal to consider the sales invoice; and (2) affirmed the Department’s certificate of assessment of use tax due and owing on transactions where shop supplies, purchased without payment of sales tax, were used and consumed.