South Dakota DOR Issues 2026 Tax Guidelines for Lodging Establishments

The South Dakota Department of Revenue (DOR) has published guidelines for hotels, motels, and campgrounds regarding the application of various taxes to their operations. The guidelines outline the state sales tax rate of 4.2 percent, municipal sales tax rate of 1 to 2 percent, municipal gross receipts tax rate of 1 percent, and tourism tax rate of 1.5 percent that apply to lodging establishments, effective as of Jan. 1. The guidelines provide information on definitions of lodging establishments and campgrounds, tax applications for various services including equipment rentals, food and drinks, gift shops, movies, vending machines, franchise operations, reservation services, ...