Two Rate Changes in Six Months
Spearfish sellers face more rate changes in 2027 than most South Dakota businesses. The Lawrence County tax starts on January 1, 2027, and the state rate is scheduled to rise on July 1, 2027. Registers, online stores, booking systems and invoice templates all have to be updated twice, and the returns gain a county line. BOMCAS prepares Spearfish sales tax returns remotely and helps businesses plan for both changes.
Licensing and the statewide list of taxable services are on our South Dakota sales tax page, while Spearfish's codes, the 2027 county tax and the hotel district are explained below.
Spearfish Rates
- General sales and taxable services: 6.2 percent now, 6.7 percent from January 1, 2027 and 7.0 percent from July 1, 2027.
- Meals, drinks, lodging, campsites and admissions: add the 1 percent municipal gross receipts tax, code 334-1, giving 7.7 percent from January and 8.0 percent from July 2027.
- Lodging and campsite stays under 28 days and other tourism-taxed services: add the 1.5 percent state tourism tax.
- Hotels in the improvement district: $2 per room night on top of the percentage taxes.
The Lawrence County Tax
Lawrence County adopted a half-percent county sales tax by Ordinance 2026-01, taking effect January 1, 2027. It is one of six counties starting the new tax on that date. The county tax applies throughout the county, including Spearfish, Deadwood, Lead, Whitewood and rural areas, and is reported to the Department of Revenue with the other sales taxes. Businesses delivering into Lawrence County from elsewhere must also charge it.
The Hotel District and Visit Spearfish
Spearfish hotels in the business improvement district file a monthly occupancy form with the city and pay $2 per room night, due by the 15th of the following month. This is separate from the sales tax return. In addition, the city passes 25 percent of its 1 percent gross receipts tax revenue to Visit Spearfish, which markets the city to visitors. Hotels should show the district charge as a separate liability.
Vacation Rentals
Owners of short-term rentals need a South Dakota sales tax licence and must collect sales, gross receipts, tourism and, from 2027, county tax on stays under 28 days. Bookings through a marketplace provider are generally taxed by the marketplace, but direct bookings remain the owner's responsibility. Rally-week rentals are taxable even when the stay is short.
Contractors
Prime contractors pay the 2 percent contractor's excise tax on realty improvement receipts and generally pay sales or use tax on materials, at the rate where the materials are used. Projects that begin before January 2027 but continue into the year will see the county tax on materials bought after it starts.
Selling into Wyoming
Wyoming's state sales tax is 4 percent, with local taxes added. A Spearfish seller with no physical presence in Wyoming must register there once taxable sales delivered into Wyoming pass $100,000 in the current or previous year, while crews or inventory in Wyoming can create an obligation sooner. Purchases made in Wyoming and brought back for use in Spearfish may owe South Dakota use tax for the difference in rates.
Updating Systems on Time
A sale is taxed at the rate in effect when it takes place, so registers and online stores must switch on January 1 and July 1, 2027. Hotels should check how their booking systems handle stays that begin before a change and end after it, and businesses billing monthly services should review invoices dated across each change.
Filing and Records
We reconcile register, booking and processor reports to each return, track exempt sales and certificates, and keep returns ready for audit. Most businesses file monthly, and seasonal businesses may qualify for different schedules.
Spearfish Sales and Use Tax Questions
What is the sales tax on a Spearfish hotel room in 2027?
About 9.2 percent from January 2027 and 9.5 percent from July 2027, plus $2 per night at district hotels.
When does the Lawrence County tax start?
January 1, 2027. It applies throughout the county, including Spearfish.
Where do hotels pay the $2 charge?
To the City of Spearfish, using the monthly occupancy form, by the 15th of each month.
When do I have to register for Wyoming sales tax?
Once taxable sales delivered into Wyoming exceed $100,000 in a year, or sooner if you have crews or inventory there.
Talk to BOMCAS About Sales and Use Tax in Spearfish
Returns depend on books that hold each tax separately, and the same sales flow to the business return. Seasonal staff run through payroll, missed periods go through catch-up filing, purchases before the 2027 changes are a planning question, rental hosts report profit on personal returns, and Canadian owners of rentals should see cross-border tax. Businesses that operate in other parts of South Dakota can use our state guides on business taxes, personal taxes, bookkeeping, payroll, tax planning, late filing and Canada–U.S. tax, which all start from the South Dakota overview.
Let BOMCAS know about your Spearfish business or household and we will reply with next steps and the information we need for a quote. Reach us through the contact page or the form below, at 780-667-5250 or by email at info@bomcas.ca. All Spearfish services are gathered on the Spearfish overview. This page is general information and not advice for your situation.