Government
Local Government
Local Government Licensing, Taxes and Information
Alcohol
Alcohol License Issuance
All parties looking to sell, transport, manufacture or ship alcohol need proper licensing through the State of South Dakota. This includes wine shipping, carriers, alcohol delivery and retailers.
Learn More
Renewals
If you already hold a license, you should receive a courtesy email prior to your license expiring. To begin your renewal process, log into our online Filing and Tax Payment portal and select the RENEW link.
Frequently Asked Questions (FAQs)
- What are operating hours for selling alcohol?
Alcohol may be sold, served or consumed any day between the hours of 7:00 am to 2:00 am. Municipalities and counties are permitted to have more restricted regulations, so always check your local ordinances. - Who needs an alcohol license?
Anyone looking to sell, transport, manufacture or ship alcohol need a license. This includes alcohol carriers, direct wine shipping within or outside of the state, wineries and distilleries. You can apply for an alcohol license online. - How do I apply for a tax license?
You can find tax license applications online.
Property Tax
Property Tax is an ad valorem tax on all property that has been deemed taxable by the South Dakota Legislature. Ad valorem means “according to value.” Under South Dakota law all real property, defined as the land and any improvements on the land, is subject to taxation. Personal property is not taxable.
Property tax is the primary source of revenue for local governments. The State does not collect or spend any property tax revenue. In order to determine how much money a governing body may receive, the following information is needed:
Property Tax
High level on the amount much local governments can request each year
Levies
Property tax is determined by the assessed value of your property and the county’s needs. Property tax may be imposed or levied in a percentage based on the needed revenue.
How to calculate
In this example, a municipality is trying to determine how much can be requested for property taxes for Pay 2020:
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- Amount of Taxes Requested in Pay 2019: $163,237.05
- Opt Out Money: None
- Current Year Growth Percent: 3.2%
- Current Year CPI Percent: 2.4%
Every property owner will have to pay their fair share of the tax requested. This is determined by spreading the same levy across all value in the city as shown here:
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- 163,237.05 x (3.2% + 2.4%) = 9,141 = amount city can increase their tax call
- 163,237 + 9,141 = 172,378 = maximum amount the city can request.
Who can levy?
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- Counties
- Cities
- School District
- Ambulance District
- Fire District
- water development districts
- water project districts
- sanitary districts
- road districts
- business improvement districts
- community improvement districts
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Opt-out & Tax Imposition
“Opting out” means the taxing entity needs more monies from property taxes than they are allowed by the limitation. The limitation allows a taxing entity to increase their tax call from the preceding year by the consumer price index and growth. The CPI for taxes payable in 2020 has been set at 2.4. To apply for a new opt out or tax imposition, apply online.
CPI
State law requires the Department to notify county auditors by February 1 of each year of the CPI.
See the Consumer Price Index Letter to County Auditors (PDF) for the most current notification sent to county auditors with regards to CPI.
* add information regarding stored CPI
Special assessments
Special Assessments are a financing mechanism that allow payment for improvements by those who benefit, or for specific items, rather than general taxation. For additional information, please reference the South Dakota Municipal League Guide to Special Assessments.
Discretionary formula tax fact
The property tax discretionary formula is a tax incentive tool to help promote economic development in South Dakota. The new publication provides an overview of formula options, as well as how structure types affect them. The new Tax Fact also provides information on changes in law that took effect this summer.
TIF Information
Tax Increment Financing is a means of financing public improvements in a defined geographic area, known as a tax increment financing district, or TIF district. In South Dakota, a TIF district can be created by either a municipality or county. TIF has become an increasingly popular tool for communities looking to upgrade existing infrastructure or as a means of incentivizing new investments in infrastructure for economic development. The Tax Increment Financing Annual Report (PDF) details project descriptions, valuation information, and timelines for each TIF district.
Appeals
As the owner of real property in South Dakota, you have the right to ensure your property is being assessed at no more than market value, as well as assessed equitably in relationship to other properties. Understand the process of appealing your assessed value with the Property Owner Appeal Process Guide. (use guide for boards appeal guide)
Resource:
* petition / tools with the SOS they may need
* presentations turned video we can provide a link to.
Marijuana
Voters approved the legalization of recreational marijuana on the ballot on November 3, 2020. The South Dakota Department of Revenue has begun developing regulations.
The constitutional amendment is effective as of July 1, 2021, and the Department has until April 1, 2022 to have regulations in place and begin accepting applications for establishments.
Motor Vehicle
Motor vehicle titling and registration is handled through your local county treasurer’s office. An Motor Vehicle or Boat Title & Registration Application must be signed by the record owner(s) or by an authorized agent for the record owner(s). In addition to the title, when selling a vehicle the party selling the vehicle should provide to the purchaser a Bill of Sale. If you have questions in regards to your driver's license, please contact the Driver's License Office which is a division of the South Dakota Department of Public Safety.
Statistical Data
Motor Fuel what they can / can't do
Exempt Plates
What else does Rachel have in her notes
Sales Tax
Sales tax applies to the gross sales or transactions including selling, renting or leasing products or services (including products delivered electronically) into South Dakota.
SALES TAX GUIDE
Annexations
Value can be added to the taxable base of a district due to growth. Growth may be used only for a municipality/township and not county, school districts and other district. The taxing district may increase the revenue payable from value resulting from property annexed for another entity of government. This also pertains to other districts such as road, fire and ambulance.
How to change a municipal sales tax rate
Municipal sales tax applies to sales of products and services that are subject to state sales tax. This tax is on top of state sales tax to produce revenue for that municipality. South Dakota municipalities may implement new tax rates or change existing rates on January 1 or July 1 each year. Some cities fall into special jurisdictions for tax rates. Current rates and more information can be found in the Municipal Sales Tax Guide.
Statistical Reports
Historical statistical reports can be viewed through 2015.
See Reports
Confirmation of License
Any business with a physical presence in South Dakota is required to be licensed for sales tax collection. South Dakota law also requires any business without a physical presence in South Dakota to obtain a license and play applicable sales tax if its gross revenue from sales into South Dakota exceeds $100,000 or if the business made sales for delivery into South Dakota in 200 or more separate transactions.
Sales / Excise Tax Liabilities
Excise taxes are paid when purchases are made on a specific good. This includes gasoline, cigarettes and tobacco, alcohol and some contractors and construction services.
Tax Facts
Exemptions
State law exempts certain entities from paying South Dakota sales tax or use tax including relief agencies, religious agencies and private schools. Learn more about exempt entities, then complete your exemption certificate if eligible.