At present, four Indian Tribes in South Dakota have tax collection agreements with the State that include sales, use, and contractors’ excise taxes. The tax collection agreements ensure that all businesses making sales or providing construction services on property included in a tax collection agreement are subject to the same taxes, tax rates, and exemptions. All businesses, including those owned by tribal members, are responsible for collecting and remitting tax.
Indian country controlled by a Tribe that is part of a tax collection agreement is considered a Special Jurisdiction.
Special Jurisdictions - (Updated 12-06-2011)
What tax is due in Special Jurisdictions?
Retail sales of tangible personal property and services that are delivered in Special Jurisdictions are subject to 4% sales and use tax.
Receipts from construction services in Special Jurisdictions are subject to 2% contractors’ excise tax.
Do NOT collect and remit additional state tax on these transactions.
How is the tax reported?
All tax collected in a Special Jurisdiction is reported on the state tax return using the code assigned to that Special Jurisdiction. The tax remitted is then distributed between the State and Tribal Governments based on the tax collection agreements.
Is Municipal (City) tax also due?
Some cities located in Special Jurisdictions impose municipal sales and use taxes that are reported in addition to the Special Jurisdiction tax. For a list of these cities, please refer to our Tax Facts.