Source: SDLC 32-3-30, 32-3-30.1, 32-3-47, 32-3-55, and ARSD 61:02:10
- Assignment of a certificate of title shall be made by the recorded owner or owners or by a fully appointed agent.
- Papers of appointment (power of attorney) shall be attached to the title document when the assignment is made by an appointed agent.
- If a title is being put in the name of a trust, the trustee(s) must be indicated on the title. [If a title is issued in the name of a trust prior to the requirement that the trustee be indicated or on an out-of-state trust in which the trustee(s) is not indicated, a copy of the trust is required upon assignment of the title.
- Transfer of ownership shall be made by an assignment on the reverse side of the certificate of title.
- A separate bill of sale may not be accepted in addition to or in-lieu-of a South Dakota certificate of title or a required assignment.
- The county official shall accept for transmittal to the Division of Motor Vehicles an assigned South Dakota certificate of title on which there is one or more liens against the recorded owner only when the following occurs:
- A certificate of title is being forwarded for the purpose of issuance of a corrected title, which will still show in the name of the recorded owner or owners.
- A certificate of title is being forwarded for the purpose of issuance of a transfer of title when the recorded owner desires to add the name of another owner and the lien shall still show on the newly issued title. The lien may be left on the face of the document, but shall also be listed on the reverse side of the title on the line provided. Lienholders shall be certain that the lien instrument is in proper order when the ownership is changed to a joint ownership, and shall be responsible for placing the lien in the proper space on the assignment. An affidavit from the lienholder stating consent to delete a name on the title is required.
- A title transfer with an open lien may be accepted for transfer if a properly completed order to cancel lien or Lienholder’s Notice of Filing with the release section properly completed is attached to the title.
- A South Dakota certificate of title assigned to anyone other than a licensed dealer shall not be reassigned in any manner.
- Exception to E: On an out-of-state title, if that state permits an insurance company to reassign an out-of-state title on a motor vehicle acquired as the result of an insurance claim settlement. South Dakota titles cannot be reassigned by an insurance company.
- Licensed dealers may reassign a title. For a title which does not have additional reassignment space on the back, the dealer must use a Uniform Disclosure Statement and Dealer Reassignment form.
- Out-of-state licensed dealers shall have the power to reassign a South Dakota certificate of title.
- An assignment shall be properly signed, by the recorded owner or owners.
- A South Dakota driver's license or social security number must be recorded for each purchaser. In the case of a company, the FEIN is required. If the company is a sole proprietorship, the owner’s social security number or South Dakota driver’s license number may be used.
- No certificate of title shall be held or accepted, unless a proper assignment has been completed.
- For all South Dakota titles issued prior to January 1, 1991, a separate odometer statement which complies with state/federal regulations and a damage disclosure statement, when applicable, must be completed before transfer can be made.
- For out-of-state titles which do not contain an odometer disclosure section complying with state/federal regulations or a damage disclosure statement, and which are not exempted from the requirement, an odometer statement and damage disclosure statement must be completed and attached to the title.
- A licensed dealer transferring ownership on a motor vehicle previously licensed and titled in South Dakota and which does not contain an area for the disclosure of this information on the assignment of title, should attach to the title paperwork a separate damage disclosure statement form and an odometer statement that complies with the state/federal odometer regulations or a copy of the South Dakota Automobile/manufactured Dealers Association purchase order form which contains a complying odometer statement.
- Each certificate of title issued by the Division of Motor Vehicles for a vehicle, which is not exempted from the requirement, shall contain odometer disclosure and damage disclosure information.
- Upon the sale or trade-in of a motor vehicle, the owner or seller shall accurately complete an odometer disclosure statement and damage disclosure statement, if applicable and if the information is not contained on the assignment of the certificate of title, before surrendering or transferring the title.
- It is a Class 1 misdemeanor to falsify the information on the damage disclosure and a Class 6 felony to falsify information on the odometer disclosure.
- The division may refuse to transfer or issue a title if the owner or seller does not complete the information.
- Odometer disclosure information and damage disclosure information are not required for the following vehicles:
- Odometer: A vehicle that is ten (10) more years old. Damage Disclosure Statement: A vehicle that is seven (7) or more years old.
- A vehicle with a gross vehicle weight rating of more than 16,000 pounds.
- Snowmobiles, manufactured homes, and trailers.
- Boats are exempt from odometer disclosure, but fall under damage disclosure.
- Motorcycles are exempt from the damage disclosure requirement, but under federal regulation, must comply with the odometer disclosure requirements.
In limited situations, obtaining a title without payment of motor vehicle excise tax is allowed.
The title only tax exemption is intended for vehicles with special circumstances. These vehicles will not operate on the streets and highways or waterways of this state or any state and must be hauled or transported to their destination and not driven over the roadways. The title only tax exemption must be requested within 30 days of the date of purchase and prior to a title being issued.
In situations where title only is granted, various taxes such as sales tax, use tax and municipal taxes may be applicable based on the provisions in those tax laws. Proof of payment of applicable taxes, such as bill of sale, should be submitted to the County Treasurer along with the motor vehicle title application for the title only tax exemption.
When a vehicle qualifies for the title only tax exemption, the vehicle may not be registered and license plates are not issued. If the vehicle is later registered and plated so it may operate on streets and highways or waterways, the motor vehicle excise tax must be paid at that time. If the vehicle is currently titled and assigned license plates, the plates must be surrendered to the County Treasurer Office upon application for the title only tax exemption.
Vehicles eligible for the title only tax exemption include:
- Racing vehicles that are not street legal and will only be driven on race tracks;
- A newly purchased vehicle wrecked prior to titling of the vehicle that will be turned over to the insurance company or otherwise disposed of and not used on the roadways;
- Abandon vehicles towed by a removal agency as outlined in law;
- Vehicles obtained legally through a Mechanic’s Lien or Unpaid Repair Bill.
Any person applying for the title only tax exemption must complete the motor vehicle application for title (MV 608) or boat title and registration application (MV 607) and South Dakota exemption form (MV 609) attesting that the vehicle qualifies for the title only tax exemption as outlined in this policy statement.
For policy clarification purposes, the following are exclusions from this policy:
- Travel trailers and campers are not eligible for the title only tax exemption. These vehicles are titled and are intended to be mobile and use the roads and highways to reach their destination regardless of whether the location is temporary or permanent.
- Off road vehicles used on privately owned property or farm use. These vehicles are titled but are not required to be licensed unless they will be used on public roads.
- Certain equipment is intended for specialized use and is not eligible to be titled (and therefore not eligible for the title only tax exemption). Examples include:
- Farm equipment or implements of husbandry such as: hay grinders, feed mixers, etc.
- Towing vehicles or auxiliary axles such as: tow dolly, flipaxle, jeep, jeep booster, etc.
- Specialized mobile equipment such as: log splitters, air compressors barbeque pits, etc., which are not designed to haul ancillary items.
- Upon the sale of each snowmobile, the dealer or applicant shall deliver to the county treasurer of the applicant's residence all completed forms necessary to accomplish the licensing and titling for each snowmobile sold.
- A snowmobile is defined as: Any engine-driven vehicle of a type which uses sled type runners or skis with an endless belt tread or similar means of contact with the surface upon which it is operated and the vehicle does not exceed forty-eight inches in width.
- Applicant must furnish to the county treasurer in the county of his residence an Application for Motor Vehicle Title and Registration (MV-608).
- The division will not accept an incomplete application form or an application form, which the division considers erroneous.
- The application must be signed by the record owner or by an authorized agent for the record owner. A power of attorney document shall be attached to verify the appointment of the authorized agent.
- Any person who intentionally falsifies information required on the application or provides erroneous information is guilty of a Class 6 felony.
- The South Dakota driver's license or social security number of each purchaser must be given. In the case of a company, the FEIN is required. If the company is a sole proprietorship, the owner’s social security number or South Dakota driver’s license number may be used.
- Attached to the application shall be a manufacturer's statement of origin or title properly transferred to the applicant.
- A purchase order, sales contract or bill of sale will be required if the Dealer Price Certification is not completed on the application.
- It is important that the dealer's signature is on the original copy of the application.
- The county treasurer shall collect on each snowmobile on which no excise, sales, or similar tax have been paid by the applicant, the 3% excise tax based on the purchase price, minus any trade-in allowance granted. A bill of sale substantiating the price must be attached on sales between individuals. If a bill of sale cannot be furnished, a statement indicating such should be attached or the area indicating such on the MV-608 must be checked. A reasonable value for the snowmobile must then be established. On sales involving a dealer, the dealer price certification on the application for title (MV-608) must be completed by the selling dealer.
- Payment of the correct amount of 3% excise tax, a title fee, and any license fees as may be required, must be collected. Failure to pay the full amount of the 3% excise tax is a Class I misdemeanor.
- All snowmobiles used on public and private lands and any frozen public waters within territorial limits of South Dakota shall be licensed.
Annual license fees for a snowmobile shall be $10 per snowmobile. Payment of the license fees shall be made prior to the operation of, or permitting the operation of, any snowmobile within this state. The initial fees are prorated monthly and the snowmobile is registered under our staggered registration system, with expiration on the last day of the month of the year for which it was issued. The snowmobile license decal stays with the snowmobile and credit is given to the new owner for any months remaining on the license.