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State Supreme Court Returns Muddy Creek Oil and Gas, Inc. Rehearing Decision

STATE SUPREME COURT RETURNS MUDDY CREEK OIL AND GAS, INC. REHEARING DECISION 

(Pierre) – The South Dakota Supreme Court today upheld a 15 month period for tribal members to seek refunds for state motor fuel taxes wrongfully imposed within Indian Country. This decision clears the way for the State of South Dakota to process refund claims from members of South Dakota tribes who qualify. 

In February of 2003, the Court declared that members of South Dakota tribes were exempt from South Dakota’s motor fuel tax to the extent that they had purchased motor fuel and paid the tax within Indian County controlled by their tribe. The Court split, however, on the time limit for refunds. The High Court granted rehearing based on the requests from both the State and Muddy Creek on the question of the proper limitations period for refund applications. The High Court now ruled that the limitations period applicable in this case is fifteen months. 

“We have been waiting for a final decision. Now that we have it, we can work on getting refunds to those tribal members who are eligible,” said Long. “This decision provides us an opportunity to get this issue resolved.” 

The Supreme Court decision can be found by at http://www.state.sd.us/attorney/office/publications/

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