South Dakota Statewide Rule

South Dakota state law: ADU rental and short-term rental restrictions

Few RestrictionsApplies statewide across South Dakota (2026)

South Dakota has no statewide statute restricting ADU rental — short-term, long-term, or otherwise. The state has no rent-control statute, no just-cause-eviction statute, and no statewide short-term rental (STR) permit/registration framework. Whether an ADU may be rented (and on what terms) is set entirely by local zoning and any local STR ordinance under SDCL Chapter 11-4 (municipal) or Chapter 11-2 (county).

Key Facts

Statewide STR permit: None — entirely local
Statewide rent control: None
Statewide just-cause eviction: None
State sales tax on STR: 4.2% (SDCL Chapter 10-45)
State tourism tax on STR: 1.5% (SDCL Chapter 10-45D)
Municipal sales/BBB tax authority: SDCL Chapter 10-52, 10-52A

Last verified: 2026-06-02

Full Breakdown

South Dakota Codified Laws Title 43 (Property), Chapter 32 (Landlord and Tenant) sets baseline residential landlord-tenant rules: 3-day pay-or-quit notice, 30-day no-cause termination of month-to-month tenancies, security-deposit handling (typically 1-month maximum, return within 2 weeks). There is NO state-level rent control, just-cause eviction, or cap on rent increases. SDCL Chapter 10-45D imposes a 1.5% state tourism (promotion) tax on lodging gross receipts (including STR), and SDCL Chapter 10-45 imposes the 4.2% state sales tax on lodging stays under 28 days; SDCL Chapter 10-52 authorizes municipal sales tax up to 2%; SDCL Chapter 10-52A authorizes a municipal gross-receipts ('BBB') tax up to 1% on lodging/eating/alcohol. But there is NO statewide STR registration, license, primary-residency, or density-cap statute. As of 2026, no comprehensive statewide STR-preemption bill (analog to Florida HB1011 or Arizona SB1350) has been enacted. ADU rental restrictions — including bans on ADU-as-STR, primary-residency requirements, hosted-only operation, and density caps — are entirely local. Rapid City and Sioux Falls each maintain locally adopted STR rules; smaller cities and counties may have none or may prohibit STR outright under SDCL 9-29-1 (general welfare) or the local home-rule charter.

Violations & Penalties

Renting an ADU in violation of local STR ordinance produces local civil penalties, daily fines, revocation of any local permit, and possible nuisance abatement. Failure to remit state and municipal lodging taxes exposes the host to back-tax assessment, interest, and penalties under SDCL Chapter 10-59 (state tax administration). Marketplace facilitators (Airbnb, Vrbo) typically remit state sales/tourism tax on the host's behalf under SDCL 10-45-108, but the host remains responsible for any local registration requirements.

Frequently Asked Questions

Can South Dakota cities ban ADUs from being used as short-term rentals?

Yes. There is no statewide preemption, so cities and counties may prohibit ADU-as-STR, require primary residency, impose density caps, or require special-use permits — all under SDCL Chapter 11-4 / Chapter 11-2 zoning authority.

What taxes apply to renting an ADU short-term in South Dakota?

4.2% state sales tax (SDCL Chapter 10-45), 1.5% state tourism tax (SDCL Chapter 10-45D), up to 2% municipal sales tax (SDCL Chapter 10-52), and up to 1% municipal BBB tax (SDCL Chapter 10-52A). Airbnb/Vrbo typically remit state taxes under SDCL 10-45-108.

Does South Dakota have rent control limiting how much I can charge for an ADU?

No. South Dakota has no state rent-control statute. Rent-control ordinances at the local level are also not authorized — no enabling statute permits municipal rent control.

Sources

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