State Rates For Lodging: $70 From June Through August

State Rates For Lodging: $70 From June Through August

South Dakota Retailers Association

The maximum amount the State of South Dakota will pay for in-state lodging for employees traveling on state business is higher in the summer months than the rest of the year. The maximum rate is:

  • $70 plus applicable tax per day for check-in on June 1 through check-out on September 1
  • $55 plus applicable tax per day for check-in on September 1 through check-out on June 1

The rates are set by the South Dakota Board of Finance, and are part of the in-state per diem rates contained in state rule 5:01:02:14.

 

When sales tax applies to lodging for state employees

  • State employees who pay for lodging with personal funds (personal credit card, check or cash) are subject  to state and municipal sales taxes. The employee will request reimbursement from their agency for the lodging and sales tax paid.

  • When lodging is direct billed to the state agency and the agency pays with government funds, then no sales  tax applies.

The key is: the payment must come DIRECTLY from the governmental entity’s funds in order for it to be exempt from tax.

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