<html> <head> <title>Rule 64:06:02:84 Hunting and fishing rights.</title> <META NAME="Keywords" Content="Administrative Rules 64:06:02:84"> <META NAME="Description" Content="Administrative Rules 64:06:02:84 Hunting and fishing rights."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>64:06:02:84.&nbsp;&nbsp;Hunting and fishing rights.</b> A landowner who exclusively grants to another the right to hunt or fish on the landowner's property for an annual or seasonal fee is not subject to tax on that amount. A written agreement, filed with the register of deeds, containing the terms of the contract, including the price for the grant and a legal description of the property, is evidence of a grant of property rights which is not taxable. Any services provided by the landowner are subject to tax.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A landowner who allows hunting or fishing on the landowner's property, not under an exclusive grant in writing, is subject to tax on the gross receipts.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 17 SDR 4, effective July 18, 1990; 21 SDR 219, effective July 1, 1995; 28 SDR 178, effective July 1, 2002.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45-47.1">10-45-47.1(3)</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45D-13">10-45D-13(3).</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45-4.1">10-45-4.1</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45-5.2">10-45-5.2</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45-7">10-45-7</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45-8">10-45-8</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=10-45D-2">10-45D-2.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Examples:</b></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;Farmer Brown agrees to lease land for hunting purposes to the ABC corporation. A written agreement is entered into stating the fee charged, the description of the land to be hunted on, and the time hunting may occur. Farmer Brown also agrees to release a certain number of birds during the hunt and to plant cover crops on the land to be hunted. Additionally, Farmer Brown will provide a new access road and a campground area for the hunters to stay at. The agreement is filed with the Register of Deeds.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Although an agreement is entered into which suggests a nontaxable lease of real property, services are furnished which are taxable. Because the services are not separately stated, the entire amount of the fee is subject to tax.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If separate fees are listed for the leasehold interest and the services provided, tax is due only on the services provided.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;Each year Farmer Smith allows hunters to come onto Farmer Smith's land to hunt and fish. Farmer Smith charges $50 a person to hunt and $15 a person to fish. Farmer Smith limits the number of hunters to five and fishers to seven and only allows them on the property from 8 o'clock a.m. until 5 o'clock p.m. All of Farmer Smith's gross receipts from allowing hunting and fishing on the property are taxable.</p> </div> </body> </html>