One Rate Change, on July 1, 2027
Unlike the counties that start a county tax on January 1, 2027, Hughes County's half-percent tax begins on July 1, 2027, which is also the day the state rate is scheduled to rise from 4.2 to 4.5 percent. For Pierre sellers, that means a single update, but a larger one: the general rate jumps from 6.2 to 7.0 percent overnight. BOMCAS prepares Pierre sales tax returns remotely and helps businesses prepare registers, quotes and contracts for the change.
General licensing and the list of taxable services are on our statewide sales and use tax page. Pierre's codes, its two hotel districts and the July 2027 change are covered here.
Pierre Rates Before and After
- General goods and services: 6.2 percent until June 30, 2027, then 7.0 percent.
- Meals, alcohol, lodging and admissions, with the city's 1 percent gross receipts tax, code 284-1: 7.2 percent, then 8.0 percent.
- Lodging under 28 days, with the 1.5 percent tourism tax: 8.7 percent, then 9.5 percent.
- Hotel district charges of $2 per room night apply on top of these rates where they apply.
Two Hotel Districts
Business Improvement District No. 1 covers hotels and motels anywhere in the city with 25 or more rooms rented nightly, plus smaller properties that choose to join. It has collected $2 per night from transient guests since August 1, 2014. Complimentary rooms and stays of 28 or more consecutive nights are exempt. Business Improvement District No. 3, created in 2023, covers lodging within the Center Point Addition and also charges $2 per room night, with the previous month's collections due to the city finance officer by the 20th and complimentary rooms documented for audit. Both charges are paid to the city, not the Department of Revenue.
Selling to Government
Sales to the State of South Dakota, federal agencies and most other government bodies are generally exempt from sales tax, but the seller should keep the exemption documentation and be sure the buyer is actually the government agency rather than an employee paying personally. Purchases charged to a government card are usually exempt; a state employee buying lunch with a personal card and later claiming reimbursement is not.
Contractors on Public Projects
Prime contractors pay the 2 percent contractor's excise tax on realty improvement receipts, including most government projects, and generally pay sales or use tax on the materials they install. Some public projects are handled under special procedures, so contracts should be reviewed before bidding. Jobs running past July 1, 2027 will see higher tax on materials bought after that date.
Guides, Lodges and Rentals
Fishing and hunting guides, boat rentals, campgrounds and lodges collect sales tax on taxable services and, in many cases, the tourism tax. Packages that combine lodging, meals, guiding and licences need to be split correctly, because different taxes can apply to each part.
Across the River
A sale delivered to a customer in Fort Pierre is taxed at Fort Pierre's municipal rates, not Pierre's. Deliveries to ranches outside any city carry the state tax plus any county tax that applies in that county.
Preparing for July 2027
Retailers, restaurants and service businesses should update point-of-sale systems, online stores and price lists for July 1, 2027. Contractors with signed bids should check whether the higher tax on materials is covered. Hotels need to apply the new rate to nights stayed from that date, including stays that began before it.
Use Tax
Businesses and associations buying equipment, software or supplies from out-of-state sellers that did not charge South Dakota tax owe use tax. Associations and nonprofits are generally not exempt from sales tax just because they are nonprofits, so their purchases need the same review.
Pierre Sales and Use Tax Questions
When does the sales tax change in Pierre?
On July 1, 2027, when the Hughes County tax begins and the state rate rises. The general rate goes from 6.2 to 7.0 percent.
Are sales to state agencies taxable?
Sales made directly to the State of South Dakota and most government bodies are exempt. Keep the exemption documentation.
Is my association exempt from sales tax?
Usually not. Nonprofit status alone does not exempt purchases or sales from South Dakota sales tax.
Who collects the $2 hotel charges?
The City of Pierre. Hotels remit them to the city finance office separately from the state sales tax return.
Talk to BOMCAS About Sales and Use Tax in Pierre
Returns are easier with books that keep each tax separate, and the same sales totals feed the business return. Session and seasonal staff run through payroll, unfiled periods go through catch-up filing, purchases before July 2027 are a planning question, cabin hosts report profit on personal returns, and outfitters with Canadian clients should see cross-border tax. For work elsewhere in the state, we keep South Dakota pages on business tax returns, personal tax, bookkeeping, payroll, tax planning, back taxes and cross-border tax, linked from the South Dakota overview.
Send BOMCAS a note about your Pierre business, organisation or household and we will reply with next steps and what we need for a quote. Use the contact page or the form below, phone 780-667-5250 or email info@bomcas.ca. Every Pierre service is on the Pierre overview. This page is general information, not advice for your situation.