South Dakota Statewide Rule

South Dakota state law: STR taxes and fees

Some RestrictionsApplies statewide across South Dakota (2026)

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.

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

Last verified: 2026-06-02

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?

Approximately 8.7%: 4.2% state sales + 2% municipal sales + 1.5% state tourism + 1% Sioux Falls BBB tax. Rate varies in other SD cities depending on whether the city has enacted the 2% municipal sales and 1% BBB ceilings.

Does Airbnb collect and remit these taxes automatically?

Airbnb and Vrbo are registered South Dakota marketplace facilitators and remit state sales tax, municipal sales tax, and tourism tax on host bookings under SDCL marketplace-facilitator rules. Hosts should verify on the platform tax-settings page and remit directly for any off-platform bookings.

Is there a state STR permit or annual fee?

No. South Dakota has no statewide STR permit or annual operating fee. All operating permits and fees are set by city or county under home-rule or zoning authority.

Sources

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