Tourism Tax Reminder: Some Businesses Only Collect the Tax June Through September

Tourism Tax Reminder: Some Businesses Only Collect the Tax June Through September

South Dakota Retailers Association

South Dakota imposes a Tourism Tax of 1.5% on certain specific businesses. Some must collect and remit the tax year-round; others just during the months of June, July, August and September.

Here, we tell you which businesses are covered by the tax and when.

June-September Tourism Tax

Under state law, the tourism tax on "visitor intensive" businesses applies only during the months of June, July, August and September.

Visitor-intensive businesses include those listed below. In each of these businesses, the tourism tax applies if 50% or more of total annual receipts are derived from the sale of tangible personal property during the months of June, July, August and September.

  • antique shops

  • book stores (excluding post-secondary, college and university book stores)

  • candy stores

  • flea markets

  • gift shops

  • indigenous arts/crafts shops

  • jewelry

  • lapidary shop

  • leather goods shops

  • marinas

  • novelty shops

  • pottery shops

  • rock shops

  • souvenir shops

  • T-Shirt shops

If you fall into the visitor-intensive business category, the tourism tax rate you should be collecting and remitting is:

1.5% -- June 1-September 30 each year

0% -- October 1-May 31 each year

 

Year-Round Tourism Tax

South Dakota's 1.5% tourism tax applies year-round on:

  • lodging (including hotels, motels, campgrounds, resorts, cabins, bed and breakfasts, timeshare rentals and more)

  • visitor attractions (including amusement parks, animal exhibits and shows, antique exhibits, batting cages, bumper cars, carnival rides, chuckwagon suppers, golf driving  ranges, historic sites, hunting preserves, miniature golf courses, music shows, museums, racetracks, ski areas, water slides, and many other categories of businesses)

  • recreational services (such as carriage rides, fishing guides, hunting guides, outfitters, sight-seeing guides and tours, spas, tour bus excursions, and others)

  • recreational equipment rental (such as ATVs, bicycles, campers, RVs, and more)

  • lease of motor vehicles for 28 days or less

  • spectator events (such as auto races, balloon shows, circuses, concerts, fairs, music festivals, rodeos, sporting events, and more) 

In addition, sales of any products, services, parking or transportation on the site of a visitor attraction are subject to the tourism tax.

Restaurants in general aren’t subject to the tourism tax; HOWEVER, if a restaurant is located within an amusement park, for example, the gross receipts of that restaurant are subject to the tourism tax.

If you fall into any of the categories listed, you collect and remit 1.5% tourism tax year-round.

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