The State of South Dakota imposes a 4% tax on most goods and services. In addition, a 1.5% tax is applicable to select Tourism related goods and services (Tourism Tax).
South Dakota law (SDCL 10-52 and 10-52A), allow cities the option of imposing additional sales or use taxes. These taxes apply if a transaction occurs within a city imposing a tax, and if an item is subject to the state sales/use tax. The City of Sturgis has a 2% tax.
Gross Receipt Tax (BBB): An additional 1% tax is imposed on specific purchases such as lodging, eating establishments, alcoholic beverages and admission to places of amusement as well as athletic and cultural events. Cities can choose to apply the tax to any or all of these activities.
Contractor's Excise Tax: When a contractor performs construction services or makes a realty improvement and charges a customer for the work, the contractor is responsible for the 2% contractors’ excise tax and must have a contractors’ excise tax license.