South Dakota state law: no statewide primary-residence STR restriction

South Dakota has not enacted a statewide primary-residence STR rule. Contrast this with jurisdictions like Hawaii (HB 2416/2024), California Coastal Zone (Cal. Coastal Comm'n LCP standards), Portland OR, San Francisco, and New York City — all of which restrict STR operation to a host's primary residence by state law or city ordinance. South Dakota's statutory framework leaves any owner-occupancy or primary-residence test to individual cities and counties. SDCL 9-29-1 grants statutory cities general police power to regulate land use for 'health, safety, morals, and general welfare.' SDCL Chapter 6-12 grants home-rule cities (Sioux Falls, Rapid City, Watertown) broader implied authority. SDCL Chapter 11-2 grants counties zoning authority over unincorporated areas. Under these grants, Sioux Falls has historically permitted both owner-occupied and non-owner-occupied STRs subject to zoning compliance; Rapid City's STR ordinance distinguishes 'hosted' (owner-occupied) and 'non-hosted' (whole-home) rentals with separate permit conditions. The South Dakota Department of Revenue does not condition tax collection on primary-residence status — all lodging rentals are subject to the same 4.2% sales tax, 1.5% tourism tax, and any applicable municipal sales/BBB taxes regardless of owner-occupancy. Statewide law expressly preserves local authority to set or omit a primary-residence test.

There is no state-level penalty for non-primary-residence STR operation in South Dakota. Where a city or county ordinance imposes a primary-residence requirement, enforcement is by local code enforcement under SDCL 9-32 (municipal nuisance), the local zoning code, and applicable civil fines and cease-operation orders. The host may also face revocation of any local STR permit and may be ineligible for re-application.