Frequently Asked Questions


Phone: (605) 394-2332

Do I need a sales tax license & how do I get one?

ALL concessionaires must obtain a temporary SD sales tax license for each business location, including Sturgis, Rapid City, Spearfish, Custer or any other cities in the Black Hills area. This also includes locations outside of city limits. Under no circumstances will any vendor be allowed to make any sales before being licensed.

To obtain the temporary license in advance of the rally contact the Rapid City office of the SD Department of Revenue at 605-394-2332. An application is available here. If you do not wish to obtain the license in advance you may contact The Department of Revenue at Sturgis City Hall, 1040 2nd St. Ste 103, beginning the week before the rally between the hours of 9am and 3pm.



If I have a permanent SD tax license can I just report and pay my taxes on my permanent return form?

No, if you are in a temporary location, even if you have a permanent SD license, you must obtain a temporary license and pay your taxes to the Department of Revenue at Sturgis City Hall during the rally.



If I just sell or display motorcycles or trailers do I need a sales tax license?

Yes, all vendors need to display a temporary license card whether they owe tax or not. Vendors selling or displaying motorcycles, trailers, or other vehicles also need to obtain a Temporary Motor Vehicle Dealer permit. Some restrictions apply and there is a fee for this permit. Please see the application and information on the following pages for Temporary Manufacturer, Customizer or Dealer Permit.



How Much Does a License Cost?

There is no cost for a license, but all new concessionaires and concessionaires with poor reporting histories will be required to post a bond before being licensed to sell merchandise, food or services at the rally. Bond amounts are at least $500 depending on the past history of the business. The department reserves the right to require a bond from any vendor.



Is the bond refundable?

Yes, once you have paid all of your taxes at the rally the bond is refunded as long as you return the bond receipt.



Can I just deduct the amount of tax owed from the bond?

No.  You must pay your taxes according to the filing schedule.  Bond is held as a deposit and will be mailed back to you when the rally has ended and your final sales tax return has been filed and proper sales tax has been paid.

 



When and Where do I pay my taxes?

Taxes are to be paid directly to the Department of Revenue at Sturgis City Hall during the week of the rally. If you are located in Rapid City or any city in the Southern Black Hills other arrangements may be made by the Department to pay the taxes.



Can I just pay on my last day?

No, vendors are required to pay according to a schedule of collection days. If they leave early they are to pay their final taxes before they leave. The bond is not refunded until the final taxes are paid.



What is the tax rate?

Items or Services (not including food): Sturgis, Deadwood, Lead, Spearfish, Custer, Hill City, Whitewood, Keystone: 8.0%, Food is 9.0%. Rapid City: 8.0%, Food is 9.0% Hot Springs: 8.0%, Food is 9.0% Belle Fourche: 8.0%, Food is 9.0% Newell: 8.0% for both food & other items If your business is located outside of city limits the rate is 6.0% for both food and general items and services. ** These tax rates will become effective as of June 1, 2016



Can I just get one license for all of my locations?

No, one license for EACH location is required. But only one bond will be required.



What kinds of records do I need to keep?

Inventory records, a daily cash sheet, cash register tapes, credit card receipts, bank deposit slips, purchase invoices, sales receipts and supplier lists. Revenue auditors may stop at your location to review your records.

SDCL 10-45-88 states that temporary vendors operating in South Dakota may be subjected to reviews without notice and shall have all records available at all times for review. The records that shall be available at all times include sales receipts, credit card receipts, cash register tapes, inventory sheets, and invoices from suppliers.

Failure to maintain records is a Class 1 misdemeanor and can result in the immediate revocation of the temporary license.

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