In addition to South Dakota’s 4.5-percent sales tax, the state has a use tax, which is the rate.

Sales and use tax for sales of goods

Businesses making retail sales and selling some services must collect and remit South Dakota’s sales tax of 4.5 percent. If a business purchases tangible personal property and stores or uses it instead of reselling it, the business must pay the use tax on the items. For example, a business that purchases 10 cases of Widget A and only sells eight cases. Instead of trying to sell a slow-moving item, the business decides to use the other two cases in the business. It must pay the use tax on the two cases. The sales tax return and use tax return are on the same tax form.

Motor vehicle tax

South Dakota has a motor vehicle excise tax fee of 4 percent of the purchase price. Additionally, South Dakota has a motor vehicle gross receipts tax of 4.5 percent that applies to the rental of cars, trucks, motorcycles and vans if the business rents them to the same person for less than 28 days. Certain trailers are also subject to the tax if they are rented for 6 months or less.

Cigarette and tobacco tax

Cigarettes are taxed at $1.53 per pack of 20 and $1.92 per pack of 25. Other tobacco products are taxed at 35 percent of the wholesale purchase price. Additionally, retail sales of cigarettes are subject to the state sales tax rate and the rate at the local jurisdictions, if any.

South Dakota also has a rule that retailers cannot sell cigarettes and other tobacco products for less than 8 percent above the distributor’s or wholesaler’s price.

Tourism tax

The state has a tourism tax of 1.50 percent on the following types of establishments:

• Lodging establishments.
• Campgrounds.
• Recreational equipment rentals.
• Motor vehicle rentals.
• Recreational services.
• Spectator events.
• Visitor attractions.

South Dakota levies the tax year-round. Additionally, the tax applies to “visitor-intensive” businesses from July through September.

If a business is exempt from sales tax, it is also exempt from the tourism tax. For example, fair admissions are not subject to the state’s sales tax. Thus, they are not subject to the tourism tax. However, rodeo admissions, rides at a fair and concessions are subject to sales tax. Thus, those items and services are subject to the tourism tax.

Telecommunications tax

The telecommunications tax of 4 percent applies to several telecommunications services, including:

• 800 services.
• Fixed wireless service.
• 900 services.
• Mobile wireless service.
• Prepaid calling service.
• Paging service.
• Prepaid wireless calling service.
• Value-added non-voice data service.
• Private communication service.
• Voice over internet protocol (VoIP).

Prepaid wireless 911 emergency surcharge

Wireless service providers and other businesses that sell prepaid wireless service must collect and remit the prepaid wireless 911 emergency surcharge of 2 percent on gross receipts from retail sales.

Taxable items include prepaid wireless airtime cards and prepaid wireless minutes and plans in addition to other services. If the surcharge is not itemized, it is subject to sales taxes for the state and municipalities.

If the retailer sells prepaid wireless services with non-taxable products for a single price, the entire price is taxable.

Boat excise tax

A boat excise tax of 3 percent applies to the purchase of most boats in addition to the sales tax.

Discretionary taxes (Local sales tax)

Local jurisdictions can impose a gross receipts tax, municipal sales tax and use tax. Although the taxes are for the municipalities, the South Dakota Department of Revenue administers the taxes.

The general municipal sales tax can be up to 2 percent. The gross receipts tax can be up to 1 percent and is in addition to the municipal sales tax.

Municipalities can impose the gross receipts tax on:

• Alcoholic beverages.
• Lodging accommodations.
• Eating establishments.
• Admisssions to places of amusements.
• Cultural events.
• Athletic events.

The South Dakota Department of Revenue also administers these taxes.

The following special jurisdictions have the following taxes:

• Cheyenne River: Sales/Use of 4.5 percent; Excise of 2 percent; and River Tourism of 1.5 percent.
• Crow Creek: Sales/Use of 4.5 percent; Excise of 2 percent; and Tourism of 1.5 percent.
• Oglala: Sales/Use of 4.5 percent; Excise of 2 percent; and Tourism of 1.5 percent.
• Rosebud: Sales/Use of 4.5 percent; Excise of 2 percent; and Tourism of 1.5 percent.
• Standing Rock: Sales/Use of 4.5 percent; Excise of 2 percent; and Tourism of 1.5 percent.
• Sisseton Wahpeton: Use tax only of 4.5 percent and Excise tax of 2 percent.
• Yankton: Use tax only of 4.5 percent and Excise tax of 2 percent.

Additionally, the following cities also have special taxes, which are in addition to the state sales tax and the special jurisdictional taxes:

Cheyenne River

• Dupree: 1 percent.
• Eagle Butte: 2 percent.
• Isabel: 2 percent.
• Timber Lake: 2 percent.

Standing Rock

• McIntosh: 2 percent.
• McLaughlin: 2 percent.
• Morristown: 1.50 percent.

Rosebud

• Mission: 2 percent.

Businesses can also look up their tax rate by address.