Sept. 1: State Rates For Lodging Go Down

Sept. 1: State Rates For Lodging Go Down

South Dakota Retailers Association  

A reminder to our lodging members: The maximum amount the State of South Dakota will pay for lodging for employees traveling on state business went up during the summer months, but drops again starting in September.

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 from 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.

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

Return to Listing