Carsforsale.com v. South Dakota Department of RevenueAnnotate this Case
The Supreme Court affirmed the decision of the circuit court affirming in part and reversing in part the decision of the South Dakota Department of Revenue issuing Carsforsale.com a certificate of assessment for alleged use tax violations, holding that Carsforsale was not entitled to an advertising exemption or a sale-for-resale exemption.
Carsforsale was a web-based business that offered dealers and individuals an online forum to advertise their vehicle for sale and also provided website hosting, social media integration, and other services. The Department found that Carsforsale was not entitled to an advertising exemption on disputed services and dismissed Carsforsale’s argument that the purchases of domain names were exempt under the sale-for-resale exemption. The Supreme Court held (1) Carsforsale was not entitled to the advertising exemption; and (2) Carsforsale was not entitled to the sale-for-resale exemption.