How to Tax Hunting and Fishing in South Dakota
- Aug 20, 2014 | Gail Cole
South Dakota is a hunter’s paradise. There are antelope, bighorn sheep, elk, mountain goat, mountain lion. There are ducks, fall turkey, geese, partridge, pheasant, quail, sandhill crane, tundra swan. And there is much, much more. An amazing variety of animals live in or pass through South Dakota, which is why people travel from all over the country to hunt there.
Hunting is therefore more than just a sport in South Dakota. It’s a business. And as the South Dakota Department of Revenue reminds in a recently released Tax Facts sheet, certain state and local sales and use taxes apply to fishing and hunting service providers.
“If you receive any payment for providing fishing or hunting services, you are operating a sales taxable business. You must obtain a sales tax license and report and pay sales tax to the South Dakota Department of Revenue.”
Sales tax applies to gross receipts of:
- Fishing or hunting guide services.
- The sale of access to individuals or groups for fishing or hunting on property you own or operate.
- Membership fees to hunting preserves or hunting clubs located in South Dakota.
- The sale of any equipment and supplies.
- The sale of lodging and camping.
- The sale of meals, snacks and beverages.
State sales tax always applies to sales of taxable products and services in South Dakota. The following additional taxes may also apply:
- Municipal sales tax (1% to 2%)
- Municipal gross receipts tax (MGRT) (1%)
- Tourism tax (1.5%)
Neither MGRT nor tourism tax apply to goods or services on which use tax was remitted.
Fishing and hunting service providers may purchase goods and services and then sell them to customers in the regular course of business. So long as the goods and services are resold to customers, they may be purchased exempt from sales tax. A properly completed exemption certificate must be given to the seller at the time of sale for all exempt purchases.
The application of sales and use tax to hunting and fishing services is more complicated than you might think—the Tax Facts on the topic spans 8 pages and includes how sales tax applies to game birds, hunting dogs, hunting rights, tournaments, and more. It’s worth a read.
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