International Registration Plan (IRP)

Vehicles used to transport items weighing more than 500lbs (for business purposes) must be commercially licensed.

If your vehicle travels only in South Dakota, you need to obtain an in-state commercial license from you county treasurer’s office. However, if you use that vehicle outside South Dakota, you must either trip permit or have an IRP license (also referred to as a prorate license). These licenses are issued only by the Office of Prorate and Commercial Licensing, a section of the Department of Revenue Division of Motor Vehicles.

Some vehicles are exempt from commercial licensing under SDCL 32-9-3. Contact the Office of Prorate and Commercial Licensing for further information on commercially exempt vehicles.

Member Jurisdictions

Purchasing a prorate license in South Dakota licenses your vehicle in all states and Canadian provinces participating in the International Registration Plan (IRP) in which you choose to travel. The member jurisdictions include:

Alabama
Alberta
Arkansas
Arizona
British Columbia
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Iowa
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maine
Manitoba
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
New Brunswick
Nebraska
New Foundland & Labrador
New Hampshire
New Jersey
New Mexico
New York
Nevada
North Carolina
North Dakota
Nova Scotia
Ohio
Oklahoma
Ontario
Oregon
Pennsylvania
Quebec
Rhode Island
Saskatchewan
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

License

The cost of a prorate license depends on two factors; the fee schedule in each state in which your vehicles travel and the percent of miles traveled in each state of the total miles that your vehicles travel. Fees, which vary from state to state, are typically based on:

  • The weight of a vehicle;
  • Its model year;
  • Its value;
  • Some combination of weight, model year, and value.

The cost of a license also depends on the percentage of miles traveled in each state by each vehicle. For instance, if 60 percent of the miles a vehicle travels are in South Dakota and the remaining 40 percent in Minnesota, 60 percent of the prorate license cost will be based on South Dakota’s fee schedule and the remaining 40 percent on Minnesota’s fee schedule. South Dakota also collects excise tax on most vehicles where title is being transferred. The tax rate is 4%; however, on a prorate licensed vehicle, the tax is also based on the percentage of miles for South Dakota.

Licensing Process

The licensing process for a new applicant is composed of the following steps:

  • Complete the IRP Application and attach the following forms:
  • The office will calculate the cost of your license and send you a bill.
  • Return the top portion of the bill along with your payment made payable to the South Dakota Department of Revenue. Payments received after 30 days of the billing date in which temporary clearance has been issued will be assessed a penalty of $10.00 or 10% if the billing; whichever is greater and interest of 1.5%. Interest is assessed monthly until a payment is received.
  • After payment has been received, you will be sent license plates/decals and cab cards covering the vehicles you have licensed. Review these to make sure they are correct. Corrections requested more than 15 days after receipt will be charged $3.00 per cab card.

Temporary Clearances

In order to receive a temporary clearance, you must first complete an IRP Application. You will then calculate and submit an advanced deposit. The advanced deposit must be submitted with the application and all other required documents. This temporary clearance allows interstate travel in the same manner as a permanent prorate license but is only valid for a maximum of 45 days or until the end of the current registration year. Once issued, licensing of each unit commences upon the date of issuance of the temporary or until the end of the licensing period. The temporary cannot be voided once issued and licensing cannot be canceled.

What a Prorate License Won't Do

  • Exempt a carrier from payment of motor fuel taxes in any state;
  • Exempt a carrier from obtaining operating authority from a state where the apportioned vehicle operates or from the SSR program;
  • Exempt a carrier from any sales tax liability;
  • Exempt a carrier from obtaining a DOT number;
  • Exempt a carrier from the payment or filing of the Federal Heavy Vehicle Use Tax;
  • Permit a carrier to exceed maximum length, height, width, or axle limitations;
  • Permit the violation of bridge laws;
  • Exempt a carrier from obtaining a Commercial Driver’s License.
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