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You must have owned a house for at least three years OR Have been a resident of South Dakota for at least five years. Applications must be submitted annually to your county treasurer on or before April 1st. The Homestead Exemption Program delays the payment of property taxes until the property is sold.
Fuel used for agricultural purposes is exempt from sales tax. This includes motor fuel, kerosene, tractor fuel, liquefied petroleum gas, natural and artificial gas, diesel fuels and distillate. Dyed fuel should be used in unlicensed agricultural equipment used to provide agricultural services on agricultural land.
Sales to the State of South Dakota and South Dakota public or municipal corporations are exempt from sales tax. The governments from other states or the District of Columbia are exempt from sales tax if the law in that state provides a similar exemption for South Dakota governments.
Customer Exemptions Depending on the state, these may include government entities, non-profits, and schools, to name a few. It is the buyers' responsibility to provide their exemption certificates in order to not be charged sales tax, and sellers need to keep documentation of these exemptions on file.
Contractor's excise tax is imposed on the gross receipts of all prime contractors engaged in construction services or realty improvement projects in South Dakota (SDCL 10-46A). The gross receipts would include the tax collected from the consumer.
37 states do not levy a sales tax on food. Currently, South Dakota is one of only three states that tax groceries at the full sales tax rate without any offsetting tax credit. Eliminating the sales tax on groceries is the best way to help families that are feeling the pressures of inflation at the grocery store.
South Dakota does not have an individual income tax. South Dakota also does not have a corporate income tax. South Dakota has a 4.50 percent state sales tax rate, a max local sales tax rate of 4.50 percent, and an average combined state and local sales tax rate of 6.40 percent.
The state's tax system is among the most retiree-friendly in the country. It has no income tax, relatively low sales taxes, high property taxes and no estate or inheritance taxes.