Rapid City, SD Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 1% municipal gross receipts tax
- Taxable stays
- Hotel, motel, campsite stays under 28 days
- Collected by
- South Dakota Department of Revenue
- Revenue split
- 25% Visit Rapid City, 75% Civic Center
- Authority
- SDCL Chapter 10-52A
- General penalty
- $1-$500 fine or up to 30 days jail
Summary
Rapid City levies a 1% municipal gross receipts tax on hotel, motel, campsite and other lodging stays under 28 days, on top of alcohol sales, prepared food and admissions. Municipal Code § 3.18.020 sets the rate; the South Dakota Department of Revenue collects it and remits it to the city monthly.
Pursuant to SDCL Ch. 10-52A, there is imposed an additional tax at the rate of 1% upon the gross receipts of all leases or rentals of hotel, motel, campsites or other lodging accommodations within the municipality for periods of less than 28 days; sales of alcoholic beverages as defined in SDCL § 35-1-1; establishments where the public is invited to eat, dine or purchase and carry out prepared food for immediate consumption; and ticket sales or admissions to places of amusement, athletic or cultural events, or any combination thereof.
Full Breakdown
020 imposes an additional 1% tax, under authority of SDCL Chapter 10-52A, on the gross receipts of every lease or rental of a hotel, motel, campsite or other lodging accommodation within the city for a period of less than 28 days, along with alcoholic beverage sales, restaurants and other prepared-food-for-immediate-consumption establishments, and ticket sales or admissions to amusement, athletic or cultural events. A stay of 28 days or longer falls outside the tax, meaning short-term rentals booked night to night or week to week are taxable while extended-stay bookings are not.
040 directs that the chapter be interpreted the same way as the state Retail Occupational Sales and Service Tax under SDCL § 10-45, differing only in rate. 050, revenue is split 25 percent to Visit Rapid City for tourism promotion and 75 percent to the Rushmore Plaza Civic Center Board for maintenance, staffing and operations, with the Finance Office calculating and remitting payments monthly based on the Department of Revenue's distribution. 060 appoints Visit Rapid City as the city's official promotion agency, conditioned on submitting an annual marketing plan and budget to the Common Council by April 1, keeping six years of receipt and disbursement records, and reporting to the Mayor and aldermen at least quarterly.
Violations & Fines
Failing or refusing to file a required report or pay the tax under § 3.18.080 is a violation of the chapter, subject to the general penalty in Chapter 1.12: a fine of not less than $1 nor more than $500, up to 30 days in jail, or both, with each day of continued violation a separate offense. The South Dakota Department of Revenue is also authorized to use the collection remedies in SDCL § 10-45 to recover unpaid gross receipts tax.
Frequently Asked Questions
Does Rapid City's hotel tax apply to short-term rentals?
Who collects Rapid City's 1% lodging tax?
Where does the hotel tax money go?
What happens if a lodging operator does not pay the tax?
Sources & Official References
Other rules in Rapid City
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