Sioux Falls, SD Accessory Structures: ADU Impact Fees (2026)

South Dakota Codified Laws (SDCL) Title 11 grants municipalities general zoning and subdivision authority but the state has not adopted a statewide development impact fee enabling statute comparable to California's Mitigation Fee Act, Idaho's Development Impact Fee Act, or Washington's RCW 82.02. As a result, Sioux Falls ADU construction costs are driven by direct permit fees and utility connection charges rather than a separate impact-fee schedule. Typical charges include: (1) building permit fees under Code Chapter 150, calculated on construction valuation per the adopted IBC/IRC fee schedule maintained by Planning and Development Services; (2) plan review fees, typically a percentage of the building permit fee; (3) electrical permit fees through the South Dakota Electrical Commission (state-licensed contractors required); (4) plumbing and mechanical permits separately under Sioux Falls Code; (5) water connection and meter fees under Code Chapter 53 if a new water service line is installed — sharing the existing service with the principal dwelling typically avoids new connection charges; (6) sanitary sewer connection fees under Code Chapter 54 if a new lateral is installed. Floodplain review under Code Chapter 154 may add a fee for lots within mapped Big Sioux River or Skunk Creek FEMA Special Flood Hazard Areas. School impact fees: South Dakota does not authorize them; the Sioux Falls School District is funded through state aid and the city/county property tax mill levy. South Dakota has no state income tax, no personal property tax on real-estate fixtures, and Sioux Falls funds infrastructure largely through the 2 percent municipal sales tax (1 percent general, 1 percent capital improvements under SDCL 10-52).