South Dakota: Guidelines for Sales Tax in Indian Country
- Nov 26, 2012 | Gail Cole
The South Dakota Department of Revenue has released updated Tax Facts on "how tax applies to the sale of products, services, and construction work in Indian country in South Dakota." Information found in this November 2012 Tax Facts sheet trumps all other previous information; in other words, "this document rescinds and replaces all previously written information on this subject."
In South Dakota, Indian Country is defined as:
- "All land within the limits of any Indian reservation under the jurisdiction of the United States Government, notwithstanding the issuance of any patent, and, including rights-of-way running through the reservation.
- All dependent Indian communities within the borders of the United States whether within the original or subsequently acquired territory thereof, and whether within or without the limits of a state, and
- All Indian allotments, the Indian titles to which have not been extinguished, including rights of way running through the same."
There are five Special Jurisdictions with tax collection agreements in South Dakota:
- Cheyenne River Special Jurisdiction
- Crow Creek Special Jurisdiction
- Oglala Special Jurisdiction
- Rosebud Special Jurisdiction
- Standing Rock Special Jurisdiction
Sales and Use Tax
According the the updated Tax Facts sheet, "[r]etail sales of tangible personal property and services delivered within the Special Jurisdictions are subject to 4% sales and use tax … reported under the appropriate Special Jurisdiction codes on the state sales tax return." Additional state tax should not be remitted on these transactions.
To be reported under the Special Jurisdiction Codes, the sale transaction must either take place on the Special Jurisdiction or be delivered to Indian Country.
Contractors' Excise Tax
"Receipts from construction services or realty improvement projects within Special Jurisdictions are subject to contractors' excise tax." The tax applies to all projects, whether the contractor is Indian or non-Indian. There is a 4% sales or use tax on construction materials, and use tax is due "on material furnished to the contractor by an exempt entity, such as a Tribal Government… ." When reporting these transactions, the Special Jurisdiction's code should be used.
Four of the Special Jurisdictions have a tourism tax. Oglala (Pine Ridge) does not. "The tourism or seasonal tax is an additional tax on certain lodging and amusement services… ." Currently, the tourism tax rate is 1.5%. Additional information is available at South Dakota Department of Revenue Tourism Tax Facts.
The following cities, located with the Special Jurisdictions listed above, have a municipal sales and use tax rate in addition to the state sales and use tax and tribal taxes:
Cheyenne River Special Jurisdiction
- Eagle Butte
- Timber Lake
Crow Creek Special Jurisdiction
Oglala Special Jurisdiction
Rosebud Special Jurisdiction
Standing Rock Special Jurisdiction
All sales and use tax for Special Jurisdictions must be reported on the state sales tax return.
Tribal Governments Without Tax Collection Agreements
South Dakota does not have sales, use, or contractor's excise tax collection agreements with the following Indian Tribes: Flandreau and Lower Brule. Limited tax collections agreements exist with the following Tribes: Yankton and Sisseton-Wahpeton Oyate; these agreements apply to contractor's excise tax and use tax. Anyone wishing to do business in areas controlled by these tribes should contact the tribes directly to learn about tax obligations.
Sales to Tribal Governments
The sale of products and services to theTribal Governments (Indian tribes) "are exempt from sales and use tax," according to South Dakota law. In order to qualify for the exemption, payment on the sale of products and services must be made directly by the Tribal Government.
Special Jurisdiction Rates and Codes:
|Cheyenne River Sales (CRST-ST)||408-4||4.00%|
|Cheyenne River Excise (CRST-ET)||408-2||2.00%|
|Cheyenne River Tourism (CRST-TT)||408-5||1.50%|
|Crow Creek Sales (CCST-ST)||417-4||4.00%|
|Crow Creek Excise (CCST-ET)||417-2||2.00%|
|Crow Creek Tourism (CCST-TT)||417-5||1.5%|
|Oglala Sales (OGST-ST)||411-4||4.00%|
|Oglala Excise (OGST-ET)||411-2||2.00%|
|Rosebud Sales (RBST-ST)||412-4||4.00%|
|Rosebud Excise (RBST-ET)||412-2||2.00%|
|Rosebud Tourism (RBST-TT)||412-5||1.50%|
|Standing Rock Sales (SRST-ST)||413-4||4.00%|
|Standing Rock Excise (SRST-ET)||413-2||2.00%|
|Standing Rock Tourism (SRST-TT)||413-5||1.50%|
|Sisseton-Wahpeton Oyate Sales (SWO-UT)||414-4||4.00%|
|Sisseton-Wahpeton Oyate Excise (SWO-ET)||414-2||2.00%|
|Yankton Use (YST-UT)||418-4||4.00%|
|Yankton Excise (YST-ET)||418-2||2.00%|