The tourism (or seasonal) tax is a 1.5% tax on certain lodging and amusement services for purposes of promoting tourism in South Dakota. The tourism tax is in addition to any state and applicable municipal taxes that apply to the sales of these services. The tourism tax is reported in the city tax section of the sales tax return using the code 700-1.
Tourism tax applies to the following:
- Hotels and lodging establishments
- Motor vehicle rentals
- Recreational equipment rentals
- Recreational services
- Spectator events
- Visitor attractions
- Visitor-intensive businesses
The tourism tax applies year-round to all of the above except for visitor-intensive businesses. Visitor-intensive businesses pay tourism tax during the months of June, July, August, and September only.
For more information on the tourism tax and how it may apply to your business see the Tourism Tax Fact.
Motor Vehicle Leasing Receipts (MVLR) Tax
The Motor Vehicle Leasing Receipts (MVLR) tax is a 4.5% gross receipts tax on certain leases of licensed motor vehicles without an operator. This tax is in addition to any state, municipal, and tourism taxes that apply to these rentals. The MVLR tax is reported in the city tax section of the sales tax return using the code 600-1.
The MVLR tax applies to the following:
- Automobiles, pickups or vans that are licensed under the noncommercial license fee schedule SDCL 32-5-6 with a manufacturer shipping weight, including accessories, of 10,000 pounds or less that are rented in South Dakota for 28 days or less.
- Trailers with an unladen weight of 9,000 pounds or more that are rented in South Dakota for six months or less.
For leases of automobiles, pickups, and vans that are leased for 28 days or less, a total of 9.5% in state tax (4% state tax, 4.5% MVLR tax, and 1.5% tourism tax) applies, plus applicable municipal tax.
For leases of trailers, a total of 8.5% in state tax (4% state tax and 4.5% MVLR tax) applies, plus applicable municipal tax, if the trailer is rented for 28 days or less. If the trailer is rented for more than 28 days but less than six months, only the 4.5% MVLR tax applies.
For more information on the motor vehicle industry and how the MVLR tax may apply to your business see the Motor Vehicle Tax Fact.
Telecommunications Gross Receipts Tax
The telecommunications tax is a 4% gross receipts tax on the retail sale of certain wireless communications services if the customer's place of primary use is located in South Dakota. The tax is reported in the city tax section of the sales tax return using the code 900-1.
The 4% telecommunications gross receipts tax applies to the following services:
- Wireless personal communications services (including pagers)
- Wireless local loop services
- Enhanced special mobile radio services
- Fixed wireless services
- Cellular services that provide two-way communication
Gross receipts subject to this tax include charges for communications services, activation fees, voice mail, and text messaging. The gross receipts tax does NOT apply to sales of equipment or late fees. The 4% gross receipts tax is included in the total charge subject to state and applicable municipal sales tax.
The customer's "place of primary use" is defined as the street address representative of where the customer's use of the mobile telecommunications service primarily occurs, which must be
- the residential street address or the primary business street address of the customer; and
- within the licensed service area of the home service provider
For more information on the Telecommunications gross receipts tax, please contact our office at 1-800-829-9188.