South Dakota law allows municipalities to impose a municipal sales or use tax, and gross receipts tax. Businesses report municipal sales tax, use tax, and gross receipts tax on the same tax return as they report the state sales tax and use tax. Only one tax return is needed to report and remit both state and municipal tax. The following guides and publications are available:
All businesses licensed in South Dakota are also required to collect and remit municipal sales or use tax, and the municipal gross receipts tax. Municipal sales tax applies when the customer purchases or receives the products or services within a city that imposes a tax. The rate of tax is generally between 1% to 2%. Municipalities may impose or amend a municipal tax only on January 1 st or July 1 st . The list at the bottom ↓ of this page provides you with information of all municipalities located within the state that impose a local option sales tax and the general rate of tax.
The 1% municipal gross receipts tax (MGRT) is in addition to the municipal sales tax. The MGRT can be imposed on alcoholic beverages, eating establishments, lodging accommodations, admissions to places of amusement, athletic, and cultural events. MGRT can be, by municipality is listed at the bottom ↓ of this page.
Sales of tickets and charges or fees to movie theaters, carnival rides, tourist attractions, swimming pools, bowling alleys, tennis courts, racquet ball courts, concerts, operas, ballets, sports contests, similar activities or events, and membership fees (golf clubs, etc.).
Alcoholic beverages as defined for on or off-sale liquor, wine, and beer in SDCL 35-1-1.
Businesses where the public is invited to eat, dine, or purchase and carry out prepared food for immediate consumption, including snack bars and concession stands at movie theaters.
Lease or rental of hotel/motel rooms, campsites, or other lodging accommodations for periods of less than 28 consecutive days.
The following are several tax types that if applicable are to be listed in the “City & Special Jurisdiction” section of the return:
| Other Taxes | Rate | Code |
|---|---|---|
| Telecommunication Tax | 4% | 900-1 |
| Tourism Tax | 1.5% | 700-1 |
| Motor Vehicle | 4.2% | 600-1 |
| Sioux Falls Lodging | 1% | 800-1 |
Services received or products delivered within special jurisdictions should be reported under the Special Jurisdiction sales / use tax code. The tables at the bottom ↓ of this page provide information on these jurisdictions.
Find a list of the last 10 years of past municipal tax history on the link provided below.
Want to expand your business knowledge and skills? The Department of Revenue provides training to South Dakota's entrepreneurs through our Business Education Program. The program offers c ustomized presentations tailored to the needs of your organization, business, or group as well as reviews on South Dakota tax laws. The program can also:
Three-hour seminars are held three to four times throughout the year in Sioux Falls, Rapid City and Mitchell. A total of 3.0 CPE credits and/or 0.3 CEU credits are awarded for those who apply for them and attend the entire seminar. Each seminar will cover:
Contact the Business Education Coordinator at (605) 773-3311, or email at business.education@state.sd.us .
