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   Some Businesses Stop Collecting Tourism Tax at the End of September

Tourism-related businesses in South Dakota collect and remit a 1.5% state tax for tourism promotion. Some of the businesses which are subject to the tourism tax collect it all year; others collect it only four months per year.

June-September Tourism Tax

Under state law, the tourism tax on "visitor intensive" businesses applies only from June 1 through September 30 each year.

Visitor-intensive businesses include:
• 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

In each of those 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.

Year-Round Tourism Tax

The tax applies year-around on lodging (including hotels, motels, campgrounds, resorts, cabins, and bed and breakfasts); visitor attractions (examples include amusement parks, chuckwagon suppers, golf driving ranges, hunting preserves, museums, racetracks, ski areas and water slides); recreational services; recreational equipment; lease of motor vehicles for 28 days or less; and spectator events (this includes events such as concerts, rodeos, art festivals, and craft fairs).

If you fall into this category, you should be remitting tourism tax of 1.5% year-round.

For More Information

Visit the Department of Revenue’s website, then scroll down to Tourism Tax - or call the Department of Revenue at 800.829.9188.

(South Dakota Department of Revenue website home page: http://dor.sd.gov/)

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