South Dakota sales tax changes

Tracking state and local sales tax rate and rule changes in South Dakota


South Dakota sales tax changes effective July 2019

Effective July 1, 2019, two South Dakota communities will implement new municipal taxes or update their current municipal tax rate. The municipal tax changes taking effect include:

  • The city of Buffalo Chip is removing its 2.00% general sales and use tax.
  • The city of Faulkton is imposing a 1.00% municipal gross receipts tax rate on lodging, eating establishments, and alcoholic beverages. This tax is in addition to its 2.00% general sales and use tax rate. 

See the South Dakota Department of Revenue for additional details.

South Dakota Sales Tax Rate Guide

Sales tax guide for South Dakota businesses

Our free, online guide covers all aspects of managing South Dakota sales tax compliance. Topics include:

  • Business registration
  • Collecting sales tax
  • Filing sales tax returns
  • State nexus obligations
  • And more!

Visit the guide

South Dakota sales tax changes archive

Municipalities in South Dakota are authorized to implement new sales and use taxes or change existing rates twice annually, on Jan. 1 and July 1.

As of this writing, only two localities have announced changes to local sales and use tax rates at the start of the year. Beginning Jan. 1, 2018:

  • The rate in Bruce will jump from 1% to 2%.
  • The rate in McLaughlin will increase by 1% to 2%.

While local sales and use tax rate changes can occur at any time in some states, they can only be implemented on the first of January and July in South Dakota.

Four communities will impose a new or increase an existing sales and use tax as of July 1, 2017:

New sales and use taxes

  • Dante: 1%
  • Lake City: 1%

Sales and use tax rate increases

  • Morristown: from 1% to 1.5%
  • Toronto: from 1% to 2%

In addition to municipal sales tax, local tax jurisdictions may impose a gross receipts tax on admissions, alcohol, eating establishments, and lodging. More details are available from the South Dakota Department of Revenue.


Several local sales and use tax rate changes are set to take effect in South Dakota on January 1, 2017.

New tax

The city of Bradley will impose a 2% general sales and use tax.

The city of Mitchell is imposing a 1% municipal gross receipts tax on admissions and ticket sales to places of amusement, athletic and cultural events. This is in addition to the general 2% sales and use tax. (Mitchell is also continuing its tax on lodging, eating establishments, and alcoholic beverages.)

Rate increase

Lake Nordan will increase its general sales and use tax rate from 1% to 2%.

Additional information is available from the South Dakota Department of Revenue.


Two local tax sales and use tax rate changes will take effect January 1, 2016 on opposite ends of South Dakota.

Astoria, located near the Minnesota border, will increase its 1% general sales and use tax rate to 2%, bringing the combined rate to 6%.

Closer to Wyoming, the new municipality of Buffalo Chip will implement a 2% general sales and use tax. The combined state and local rate in Buffalo Chip will also be 6%. Additional information.


Local rate changes may be enacted twice annually in South Dakota, on January 1 and July 1. In July 2015, two municipal sales and use tax rate changes will occur.

Both Columbia and Westport will impose general sales and use taxes at a rate of 2%. Revenue.


Communities all across the country are announcing local sales tax rate changes taking effect on January 1, 2015. The most recent news comes from South Dakota, where local tax jurisdictions may implement rate changes or new taxes twice each year, on January 1 or July 1.

In addition to their existing 2% general sales and use tax rates, both Colome and Hurley are imposing a 1% municipal gross receipts tax on the following:

  • Lodging and eating establishments
  • Alcoholic beverages
  • Admissions and ticket sales to places of amusement and athletic and cultural events

In addition to its 2% general sales and use tax, Miller is imposing a 1% municipal gross receipts tax on the following:

  • Lodging and eating establishments
  • Alcoholic beverages

Veblen is increasing the general sales and use tax from 1% to 2%.


Connect with Avalara
Explore

See how easily our solutions work with your business applications.

Call

Curious how we help with your specific tax challenges? Just ask.

Chat

Get direct help with your most pressing questions about tax software.