South Dakota cities have the option of imposing additional sales or use taxes. These taxes apply if a transaction occurs within a city imposing a tax, and if an item is subject to the state sales/use tax. The Department of Revenue collects and administers these taxes for the cities.
Municipal Sales/Use Tax applies to all sales subject to the state tax and are reported on the same tax return.
Gross Receipts Taxes can be imposed by cities with a Municipal Sales/Use Tax. The gross receipts tax can be imposed on alcoholic beverages, eating establishments, lodging accommodations, admissions to places of amusement, athletic and cultural events. Cities can choose to apply the tax to any or all of these activities. This tax is IN ADDITION TO the Municipal Sales/Use Tax.
For more information see the Municipal (City) Tax Guide or Municipalities Tax Facts