Brandon Sales and Use Tax

A Rate That Holds While Neighbours Change

For Brandon businesses, the 2027 sales tax changes are mostly about other places. Minnehaha County has not adopted the new half-percent county tax, so Brandon's rate does not change on January 1, 2027. Lincoln County does adopt it, so deliveries and service calls into Harrisburg, Tea, Lennox, Canton and the Lincoln County side of the metro carry a higher rate from that date. Then, on July 1, 2027, the state rate is scheduled to rise for everyone. BOMCAS prepares Brandon sales tax returns remotely and keeps each location's rate straight.

Licensing and taxable services are covered on the South Dakota sales and use tax page, while Brandon's codes and its unchanged county rate in 2027 are explained here.

Brandon Rates

General sales and services: 6.2 percent (4.2 state plus 2 percent city, code 039-2), rising to 6.5 percent on July 1, 2027.
Prepared food, alcohol, lodging and admissions: an extra 1 percent city gross receipts tax (code 039-1).
Lodging for stays under 28 days: the 1.5 percent tourism tax as well.

Sales Are Taxed Where Delivered

South Dakota taxes sales at the location where the customer receives the product or service. A Brandon business delivering furniture to Harrisburg, installing a garage door in Tea or doing a service call in Valley Springs charges that location's rate. Rural deliveries outside city limits carry only state tax plus any county tax. From January 2027 that includes the Lincoln County half-percent, so accurate addresses matter.

Contractors

Brandon's residential contractors need a city licence and a South Dakota excise tax number. Contractors owe the 2 percent contractor's excise tax on gross receipts from realty improvements, wherever in South Dakota the work is done, and sales or use tax on materials. Materials bought for jobs in Lincoln County after January 2027 will be taxed at the higher rate there if delivered to the site. Contractors who also sell products, such as appliances or fixtures, separately need to know which receipts are retail sales and which are contracts.

Services Are Often Taxable

South Dakota taxes most services, so many Brandon businesses that think of themselves as service providers must collect tax. Lawn care, snow removal, house cleaning, pet grooming, hair and nail care, auto repair and many professional services are taxable. Home-based businesses are no exception and need a sales tax licence before their first taxable sale.

Events and Recreation

Admissions to events, tournaments and recreation are subject to the city's gross receipts tax. Vendors at markets, festivals and sports tournaments need a sales tax licence and should charge the rate of the event location.

Use Tax

Equipment, supplies and materials bought online or from out-of-state suppliers without South Dakota tax are subject to use tax at the rate where they are used. Contractors who buy materials in Minnesota or Iowa for South Dakota jobs owe South Dakota use tax, with credit for tax paid to the other state.

Filing

We prepare returns monthly or less often if allowed, reconcile them to sales reports, report sales by location and update rates for both 2027 changes.

Online Stores and Marketplaces

Brandon sellers with an online store charge the rate for each customer's delivery address, which the platform can usually calculate if set up correctly. Marketplace facilitators collect tax on marketplace sales, so those sales are reported differently on the return. Sales to customers in other states may require registration there once sales pass that state's threshold.

Exemption Certificates

Sales to schools, churches, other exempt organisations and resellers need a valid exemption certificate on file. Businesses selling to the Brandon Valley School District, youth sports groups or resellers should collect certificates at the time of sale.