Sioux Falls, SD Local Taxes & Fees: Vacancy Tax (2026)
Key Facts
- First-year fee
- $1,000 (non-historic)
- Historic district fee
- $2,000 first year
- Annual escalation
- +$1,000 each additional vacant year
- Registration deadline
- 30 days after building becomes vacant
- Governing sections
- City Code §§ 150.155-150.161
Summary
Sioux Falls charges owners of vacant buildings an annual fee starting at $1,000, doubling to $2,000 in historic districts, with $1,000 increases each subsequent year the building stays empty.
The owner of a vacant building shall pay an annual fee of $1,000 for the first year the building becomes a vacant building. If the property is located in a historic district identified by the city of Sioux Falls, the owner shall pay an annual fee of $2,000 for the first year the building becomes a vacant building. Thereafter, if any property remains unoccupied, the subsequent annual fee shall increase by $1,000 increments each year.
(b) The first annual fee shall be paid not later than 30 days after the building becomes a vacant building. Any subsequent annual fee shall be due upon renewal of the vacant building registration. If the fee is not paid within 30 days of being due, the owner shall be in violation of this subchapter.
(c) The fee shall be paid in full prior to the issuance of any building permits, with the exception of a demolition permit. (1992 Code, § 11-103) (Ord. 112-03, passed 11-17-2003; Ord. 137-21, passed 11- 9-2021; Ord. 53-23, passed 7-5-2023)
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
Any building in Sioux Falls that becomes vacant -- unoccupied and unsecured, unsafe, condemned, or code-violating -- must be registered with the city within 30 days under City Code § 150.157. The owner then pays an annual vacant-building fee: $1,000 the first year ($2,000 in a designated historic district), rising by $1,000 with each additional year the property remains empty. The fee is due within 30 days of vacancy or at registration renewal, and must be paid in full before the city issues any building permit other than a demolition permit.
Violations & Fines
Missing the 30-day registration window or the annual fee deadline puts the owner in violation of the vacant-building subchapter, and the fee must still be paid before any building permit issues.
Frequently Asked Questions
Does Sioux Falls tax vacant buildings?
Who has to register a vacant building?
Is there an exemption?
Sources & Official References
Other rules in Sioux Falls
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