South Dakota Statewide Rule
South Dakota state law: STR taxes and fees
Key Facts
- State sales tax
- 4.2% (SDCL 10-45)
- Municipal sales tax
- Up to 2% (SDCL 10-52)
- State tourism tax
- 1.5% on lodging (SDCL 10-45D-2)
- Municipal BBB tax
- Up to 1% (SDCL 10-52A)
- State STR permit fee
- None - local only
Summary
South Dakota has no statewide STR permit fee, but lodging stays (including Airbnb/Vrbo) are subject to a layered tax burden: 4.2% state sales tax (SDCL 10-45), up to 2% municipal sales tax (SDCL 10-52), 1.5% statewide tourism tax on lodging gross receipts (SDCL 10-45D-2 and 10-45D-4), and up to 1% municipal gross-receipts 'BBB' tax on lodging/eating/alcohol (SDCL 10-52A). Typical Sioux Falls combined tax burden on an STR night is approximately 8.7%. Marketplace facilitators (Airbnb, Vrbo) are statutorily required to register and remit South Dakota sales tax on host bookings under the SD marketplace-facilitator framework.
There is hereby imposed a tax of one and one-half percent on the gross receipts from any lodging establishment, campground, motor vehicle rental, visitor attraction, recreational equipment rental, recreational service, spectator event, and visitor-intensive business. The tax imposed by this section on the gross receipts of any visitor-intensive business shall apply to the gross receipts received by such business during the months of June, July, August, and September. The tax imposed by this section is in addition to any other tax imposed by chapters 10-45 and 10-46. Tangible personal property, any product transferred electronically, services, and admissions are subject to the tax imposed by this section only if subject to tax by chapters 10-45 and 10-46.
Full Breakdown
SDCL 10-45D-4 defines the tourism-tax base as 'the gross receipts from the rental of rooms by a lodging establishment,' which the South Dakota Department of Revenue interprets to include short-term rental nightly rates, cleaning fees, and pet fees. The 1.5% tourism tax under SDCL 10-45D-2 is in addition to (not in lieu of) state and municipal sales tax. The state has NO statewide STR permit, registration, license, or operating-standard statute: local permit fees are set entirely by city or county ordinance under SDCL 9-29-1 police-power authority (statutory cities) or SDCL 6-12 home-rule charter (Sioux Falls, Rapid City, Watertown). The state Department of Revenue requires every STR operator to hold a South Dakota sales-tax license unless all bookings come exclusively through a registered marketplace facilitator. Operators must file monthly or quarterly returns depending on volume.
Violations & Penalties
Failure to register for and remit state sales tax, municipal sales tax, tourism tax, and applicable BBB tax exposes operators to delinquency interest, penalties (typically 10% of tax due), and potential criminal misdemeanor liability for repeated nonfiling under SDCL 10-45 enforcement provisions. Marketplace facilitators that fail to remit are subject to the same penalties on host bookings.
Frequently Asked Questions
What total tax rate applies to a Sioux Falls STR night?
Does Airbnb collect and remit these taxes automatically?
Is there a state STR permit or annual fee?
Sources
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