Minnehaha County, SD Short-Term Rentals: Extended Home Share (2026)

The 28-day rule is the central distinction in South Dakota lodging law. SDCL §10-45-12.1 carves out from state sales tax 'the gross receipts from the lease or rental of rooms used for lodging accommodations to a guest who has, by contract or written agreement, continuously occupied a room, in the same hotel, motel, lodging house, tourist court, or campground, for at least twenty-eight consecutive days,' and the SD Department of Revenue applies the same 28-day boundary to the 1.5% tourism tax under SDCL Chapter 10-45D. Below 28 days, the booking is a taxable short-term lodging transaction; at and above 28 days, it is a non-taxable residential rental. Crossing the 28-day boundary also moves the legal relationship under SDCL Title 43, Chapter 32 (Lease of Real Property): the guest becomes a tenant, the operator becomes a landlord, the 3-day notice to quit for nonpayment (SDCL §21-16-2) and 30-day no-cause termination procedures (SDCL §43-32-13) apply, and self-help eviction (changing locks, removing belongings) becomes unlawful under SDCL §43-32-6. Inside Sioux Falls, the city §159.303 residential rental permit still covers the dwelling, but the city does not cap stay length under that section; longer-term tenancies are subject to the standard residential rental permit framework rather than the vacation-rental subset. Minnehaha County's Planning & Zoning Department imposes no separate ordinance on extended home-share in unincorporated areas. Hosts pursuing 28-plus-day bookings should (1) issue a written occupancy agreement / lease, (2) stop collecting state sales and tourism tax from day 1 of that booking (or refund if the booking extends beyond 28 days), and (3) follow SDCL Chapter 43-32 for termination.