Opinion ID: 900864
Heading Depth: 1
Heading Rank: 5

Heading: Continuing Education

Text: [¶ 12.] SkillPath next argues it is exempt from taxation as a continuing education program. In SDCL 10-45-12.1 the legislature exempts continuing education programs without reference to the SIC Manual. This Court has held that services specifically listed in that part of the statute in which the legislature makes no reference to the SIC Manual will be exempt from tax, regardless of the classifications made in the SIC Manual. This is true so long as one carries the burden of proving that they fall within the exemption. Welcome Wagon Int'l, Inc. v. South Dakota Dep't of Revenue, 318 N.W.2d 5, 6-7 (S.D.1982). Therefore, a claim of exemption under continuing education is analyzed like any other exemption granted by the legislature. [¶ 13.] SkillPath argues that this Court should apply the International Association for Continuing Education and Training's (Association) definition of continuing education. This definition of continuing education in the settled record reads as follows: a structured educational and training experiences for personal or professional development in which participants are assumed to have previously attained a basic level of education, training or experience. The Department argues the term continuing education programs refers to updating the skills necessary to perform a specific occupation. [¶ 14.] Both this Court and the legislature have linked continuing education with updating one's skills in relation to a particular occupation. In Brown v. State Board of Examiners in Optometry, 263 N.W.2d 490, 494 (S.D.1978) we addressed continuing education as it pertained to the licensing of optometrists. Relying on SDCL 36-7-20.1 Continuing Education Required, the statute provides: All registered optometrists whenever licensed in the state of South Dakota are and shall be required to take courses of study in subjects relating to the practice of the profession of optometry to the end that the utilization and application of new techniques, scientific and clinical advances, and the achievements of research will assure expansive and comprehensive care to the public. Whenever the meaning of a word or phrase is defined in any statute such definition is applicable to the same word or phrase wherever it occurs except where a contrary intention plainly appears. SDCL 2-14-4. The legislature has enacted numerous other statutes requiring continuing education for a host of other occupations. [3] Each statute refers to continuing education in reference to a specific occupation. The legislature has clearly manifested its intent to associate continuing education with a specific occupation. [¶ 15.] SkillPath's seminars are not such that would qualify as continuing education for the purpose of updating an individual as to the newest development in one's specific field. Although SkillPath provides a few seminars targeted at specific occupations these seminars cannot be classified as continuing education. SkillPath argues that a number of its seminars are directly related to office procedures and secretarial skills. However, SkillPath has offered no proof that any of its seminars provide up-to-date information related to a specific occupation. SkillPath seminars are more of a self-help type seminar useful to one engaged in an occupation or not. For example, SkillPath offers a course called The Essentials of Credibility, Composure, and Confidence, which was described by SkillPath's vicepresident of faculty and curricula, Ms. Mayorga, as a seminar to teach [women] how not to cry, how to maintain their composure even when they're very upset or very angry. Clearly such a seminar would not be considered continuing education. Teaching women not to cry is not a course necessary for a specific occupation but is merely a so-called self-help type of seminar useful to one whether at work, home, or elsewhere. [4] [¶ 16.] SkillPath has failed to provide any evidence that its seminars are intended to up-to-date a person's knowledge about their occupation. In addition, SkillPath's seminars do not require anything more than a general education. SkillPath teaches basic introductory skills that anyone could understand. There is no indication that a formal education of any kind is required before attending a SkillPath seminar. [¶ 17.] The trial court held SkillPath is more properly classified in SIC 8299 (Schools and Educational Services, Not Elsewhere Classified). Some of SkillPath's courses are consistent with the courses listed in SIC 8299. SkillPath's courses, The Essentials of Credibility, Composure, and Confidence, How to Become a Better Communicator, and Assertive Communication Skills for Women, fall under personal development schools within SIC 8299. For example, Ms. Mayorga described the Assertive Communication Skills for Women seminar as a course to teach women how to negotiate to get what you need in the office ... and how to be calm and know the difference between aggressive and assertive and passive. This course would clearly fit into the personal development schools within SIC 8299. [¶ 18.] Alternatively, the trial court found SkillPath's seminars could be classified in SIC 7389 (Lecture Bureaus), Major Group 73. Major Group 73 of the SIC Manual includes establishments primarily engaged in rendering services, not elsewhere classified, to business establishments on a contract or fee basis ... Under SDCL 10-45-5.2 Major Group 73 in its entirety, is specifically subject to tax. The term lecture bureau is undefined in the SIC Manual. This Court has said words used by the legislature are presumed to convey their ordinary popular meaning. State v. Harris, 494 N.W.2d 619, 622 (S.D.1993). The definition of lecture is [a]n exposition of a given subject delivered before an audience or class. American Heritage Dictionary 773 (3rd ed 1997). A bureau is a business that offers information of a specified kind: a travel bureau. American Heritage Dictionary 187 (3rd ed 1997). Therefore a lecture bureau is a business that offers information about a specific subject that is presented to a group of people. [¶ 19.] SkillPath is a business primarily engaged in providing services to other businesses. SkillPath markets directly to other businesses and ninety-five percent of its attendees fees are paid by employers. In addition, SkillPath's seminars are presented by independent contractors and are generally held in hotel rooms. [¶ 20.] SkillPath does not fit under vocational school or continuing education and is more properly classified under SIC 8299 or in the alternative SIC 7389 and thus not exempt from tax. [¶ 21.] SkillPath has not carried its burden of proving entitlement to the exemption under SDCL 10-45-12.1. We affirm. [¶ 22.] GILBERTSON, Chief Justice, and SABERS, KONENKAMP, and ZINTER, Justices, concur. [¶ 23.] MEIERHENRY, Justice, not having been a member of the Court at the time this action was submitted to the Court, did not participate.