Investor Presentaiton
Tax Basics
South Dakota does not have a corporate, unitary, or personal income tax; however, businesses may be subject to one or
more of the following taxes.
The Department of Revenue administers these taxes. The following sections of this guide are basic descriptions of each
tax and information on how to report the tax. This is general information only. For explanations on specific laws and
how they apply to your business, refer to South Dakota laws, administrative rules, and publications on our website at
https://dor.sd.gov or call 1-800-829-9188.
South Dakota Taxes and Rates
State Sales Tax and Use Tax - Applies to all sales or purchases of taxable products and services.
Municipal Sales and Use Tax - Applies to all sales of products and services that are subject to the state sales
tax or use tax if the purchaser receives or uses the product or service in a municipality that imposes a sales tax
or use tax.
Municipal Gross Receipts Tax (MGRT) - Imposed on alcoholic beverages, eating establishments, lodging
accommodations, admissions to places of amusement, athletic and cultural events. MGRT is in addition to
municipal sales tax and use tax.
Contractor's Excise Tax - Imposed on the gross receipts of all prime contractors engaged in construction
services or realty improvement projects in South Dakota. The gross receipts include the tax collected from the
consumer.
Motor Vehicle Excise Tax - Applies to the purchase of most motor vehicles.
4.5%
1 to 2%
1%
2%
4%
Motor Vehicle Gross Receipts Tax - Applies to the rental of motorcycles, cars, trucks, and vans for less than
28 days, and the rental of certain trailers for 6 months or less.
4.5%
Tourism Tax - Applies to certain lodging and amusement services. The tourism tax is used for the promotion
of tourism in South Dakota. Tourism tax does not apply when you are remitting use tax.
Ag Excise Tax - Applies to all sales or purchases of farm machinery, attachment units or irrigation equipment
used exclusively for agricultural purposes. Purchasers are responsible for the ag excise tax if the retailer does
not charge the tax.
Ag excise tax does not apply to vehicles subject to motor vehicle excise tax.
Prepaid Wireless 911 Emergency Surcharge - All sellers and wireless service providers that sell prepaid
wireless service are responsible for collecting and remitting the Prepaid Wireless 911 Emergency Surcharge.
The surcharge is on the gross receipts from retail sales of all types of prepaid wireless services and applies to
sales of goods and services delivered to customers in South Dakota or sold to online customers with a South
Dakota address.
911 Emergency Surcharge - All telecommunications service providers, wireless service providers, or
Interconnected Voice over Internet Protocol service providers are responsible for collecting and remitting the
911 Emergency Surcharge.
Wireless Gross Receipts Tax - Applies to the gross receipts on the retail sale of wireless personal
communications service, wireless local loop services, enhanced special mobile radio services, fixed wireless
services, and cellular services that provide two-way communication if the customer's place of primary use is
located in South Dakota.
Amusement Excise Tax - Applies to the gross receipts from any mechanical or electronic amusement device.
The excise tax is reported as sales tax on the sales tax return. (Examples: pinball machines, jukeboxes, pool
tables, arcade games, shooting gallery games, dart boards)
Sioux Falls Lodging Tax - The City of Sioux Falls imposes a tax on lodging establishment's receipts. Report
the Sioux Falls lodging tax in the City and Special Jurisdiction Section on the state sales tax return using code
800-1.
1.5%
4.5%
2%
$1.25
per user
line per
month
4%
4.5%
1%
4
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January 2022 • Sales and Use Tax Guide South Dakota Department of Revenue
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