Investor Presentaiton
Municipal Tax
Municipal sales tax applies when the customer purchases or
receives the products or services within a city that imposes a tax.
Municipal use tax applies to all products or services when the
applicable sales tax is not collected within a city that imposes a tax.
. The municipal use tax rate is based on the location where
the product or service is used.
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Additional municipal use tax may be due if a product or
service is used in a different city that imposes a higher rate
than was previously paid.
Municipal Gross Receipts Tax
The municipal gross receipts tax (MGRT) is in addition to the
municipal sales tax. The MGRT can be imposed on alcoholic
beverages, eating establishments, lodging accommodations,
admissions to places of amusement, athletic, and cultural events.
To ensure local governments receive the correct amount of tax
money, retailers must report their sales accurately.
Report the municipal taxes in the City and Special Jurisdiction
Section on the sales tax return using the code designated for that
city and tax. Each tax must be reported separately, using the
designated code for that tax. Do not combine taxes or report all
tax under one code.
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 sales tax return using code 800-1.
Tourism Tax
Examples of Municipal Tax Exceptions:
Transportation of passengers is subject to
state tax-municipal tax applies if the trip
begins, remains, and ends in the same city.
Farm machinery and irrigation equipment
for exclusive agricultural use are subject to
state tax no municipal tax.
Receipts from amusement devices are
subject to state tax - no municipal tax.
City tax rates vary across the state. You can
find state, municipal, and special jurisdiction
tax rates using the Sale Tax Rate Lookup. You
may also view the Municipal Tax Guide that
lists all municipal sales, use, and gross receipts
taxes.
The tourism tax on certain lodging and amusement services is for tourism
promotion.
Report the tourism tax in the City and Special Jurisdiction Section on the
sales tax return using the code 700-1.
For listings of specific products and services subject to tourism tax, review
the Tourism Tax Fact.
Changes are effective January 1 and July 1.
Examples of items Tourism Tax
applies to the gross receipts of:
Hotels and Lodging
Establishments
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Campgrounds
Motor Vehicle Rentals
Recreational Equipment Rentals
Recreational Services
Spectator Events
Visitor Attractions
Visitor-Intensive Businesses
Example:
An Aberdeen motel has
$10,000 in receipts from
room rentals.
Motel rooms rented in
July 2018 in Aberdeen
are subject to state sales
tax, municipal sales tax,
municipal gross receipts
tax, and tourism tax.
The municipal and
tourism taxes are
reported under the City
and Special Jurisdiction
Section of the tax return.
Municipal Tax Charts
City
Aberdeen
MUNICIPAL SALES TAX
July 2019
Rate
2.00%
SALES TAX CALCULATIONS
1. Gross Sales
2. Use Taxable
3. Non-Taxable Sales
GROSS RECEIPTS TAX (IN ADDITION TO MUNICIPAL SALES TAX)
General Code
July 2019
MGRT Rate
Tax Code Lodging
001-2
1.00%
001-1
X
Easting
Establishments
X
Alcohol
Admissions
X
X
GROSS
TAXABLE
RATE
TAX DUE
$10,000.00
4. Special Jurisdiction Sales (Detail in City Section)
5. Net State Sales Taxable (Line 1 plus Line 2, minus Line 3, minus Line 4)
6. City & Special Jurisdiction Tax Calculation Detail:
7. City/Special Jurisdiction Name
8. Aberdeen Municipal Tax
9. Aberdeen Municipal Gross Receipts Tax
10. Tourism Tax
$10,000.00 x 4.5%
$450.00
Code
001-2
001-1
Taxable
Rate
$10,000.00 2.00
$10,000.00 1.00
Tax Due
$200.00
$100.00
700-1
$10,000.00 1.50
$150.00
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January 2022 • Sales and Use Tax Guide
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South Dakota Department of RevenueView entire presentation