Tourism Tax Reminder: Some Businesses Only Collect the Tax June Through SeptemberSouth Dakota Retailers Association - SDRA 9/18/2017 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
• lapidary shop
• leather goods shops
• 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/)