Scandrett v. Nord, 8781
| Decision Date | 26 June 1945 |
| Docket Number | 8781 |
| Citation | 70 S.D. 527,19 N.W.2d 344 |
| Parties | HENRY A. SCANDRETT, et al., Trustees of the property of Chicago, Milwaukee, St. Paul & Pacific Railroad Company, Respondents, v. ROY A. NORD, Director of Taxation of the State of South Dakota, Appellant. |
| Court | South Dakota Supreme Court |
The question presented in this case is whether certain petroleum distillate oil purchased by the plaintiffs in the state of Illinois and used in South Dakota is subject to tax under the Use Tax Act of 1939, Ch. 276, Laws 1939, Chapters 301, 302 and 303, Laws 1943. The facts are undisputed. Plaintiffs operate an interstate railroad system, a part of which is located within the state. In the operation of this railroad system it is necessary that grass, weeds and vegetation upon the right-of-way be destroyed and also that dust be kept at a minimum. The distillate oil was purchased to be used and was actually used along the right-of-way of the railroad in this state either for the purpose of burning weeds on the right-of-way or for the purpose of spraying along the right-of-way to settle dust and destroy vegetation. The distillate oil was received by the plaintiffs at Aberdeen where it was stored and eventually used for the purposes for which it was purchased. The Use Tax Act of 1939 imposes an excise tax upon the privilege of using, storing and consuming in this state tangible personal property. Section 4 of the Act provides certain exemptions from the tax and it is the exemption contained in subdivision 3 of Section 4 which plaintiffs contend, and the trial court found, exempts the storage and use of the distillate oil by the plaintiffs in this state from the tax.
Subdivision 3 of Section 4, so far as here material, exempts “tangible personal property, the storage, use or other consumption of which this State is prohibited from taxing under the Constitution or laws of the United States of America or under the Constitution of this State, or which is used or to be used in operating or maintaining interstate transportation or interstate commerce.” Plaintiffs claim that the storage and use of the distillate oil...
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Northwestern Nat. Bank of Sioux Falls v. Gillis
...Laws of 1939. Section 3 thereof then contained only the present subsections (1) and (3) of SDC 1960 Supp. 57.4303 when Scandrett v. Nord, 70 S.D. 527, 19 N.W.2d 344, was decided. The court wrote 'The Use Tax Act of 1939 imposes an excise tax upon the privilege of using, storing and consumin......
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Michigan-Wisconsin Pipe Line Co. v. Johnson
...of the Supreme Court of the United States cases relative to 'use' taxes. We likewise do not believe the case of Scandrett v. Nord, 70 S.D. 527, 19 N.W.2d 344, is controlling. The exemption there under consideration pertained to property, "used or to be used in operating or maintaining inter......
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Friessen Const. Co., Inc. v. Erickson, 11647
...is not surplusage or merely a repetition of the constitutional exemption but declarative of the right of exemption. Scandrett v. Nord, 1945, 70 S.D. 527, 19 N.W.2d 344. I recognize that what I propose would possibly overrule State v. City of Sioux Falls, supra, and cases that have relied up......
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Northern Natural Gas Co. v. Lauterbach
...not apply where the property was 'used or to be used' in operating or maintaining interstate transportation or commerce. Scandrett v. Nord, 70 S.D. 527, 19 N.W.2d 344. Failure to add the words 'or to be used', indicates a legislative intent to confine the effect of the exemption statute to ......