Sioux Falls, SD Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Permit fee
- $50 (since July 1, 2024)
- Governing section
- Sioux Falls Code § 150.177
- STR definition threshold
- rented >14 days/year, unhosted
- Also required
- state sales tax license, state lodging license
Summary
Short-term rental units in Sioux Falls need a $50 residential rental permit and must show a state sales tax license before renting.
The fee for the permit shall be $50 beginning on July 1, 2024. The fee shall be waived for any new construction property that receives a permit prior to tenant occupancy. ... Any applicant who is permitting a short-term rental unit under this subchapter shall provide proof of a state sales tax license unless the applicant provides documentation... that proves sales tax will be remitted on behalf of the applicant by a third party. The applicant shall also provide proof of a state health department lodging license pursuant to SDCL 34-18.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-135: Current through local ordinance 54-26, passed 7-14-2026).
Full Breakdown
Sioux Falls treats any short-term rental unit as a residential rental unit under Chapter 150, so operators must file a permit application with the city before advertising or accepting occupants. The permit costs $50 (effective July 1, 2024) and applicants must show proof of a state sales tax license, or documentation that a third party remits it, plus a state health department lodging license under SDCL 34-18. A two-hour approved course is also required unless the property is managed by a licensed broker or real estate agent.
Violations & Fines
Renting without the permit is subject to the general penalty under Sioux Falls Code § 10.999; the city can also deny or suspend a permit after repeated health, nuisance, or code violations.
Frequently Asked Questions
Does Sioux Falls charge a local occupancy tax on short-term rentals?
How much is the Sioux Falls short-term rental permit fee?
Sources & Official References
Other rules in Sioux Falls
How Sioux Falls compares: Cities with the Highest Short-Term Rental Taxes·Compare Sioux Falls to another location·View the South Dakota short-term rentals overview
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