Sturgis Sales and Use Tax

Ordinary Rates and Rally Rates

Sales tax in Sturgis works on two calendars. Most of the year, a Sturgis business collects state and city tax and files on its normal schedule. During the rally, the Department of Revenue publishes separate rally rates that include the 1.5 percent tourism tax, and temporary vendors file their own returns. Local businesses that serve rally visitors need to know which rules apply to them. BOMCAS prepares Sturgis sales tax returns remotely.

Licensing and taxable services across the state are on the South Dakota sales and use tax page. Sturgis's codes, rally rates and room rentals are explained here.

Everyday Rates

General sales and services: 4.2 percent state plus 2 percent city (code 341-2), for 6.2 percent.
Lodging, restaurant food, alcohol and admissions: another 1 percent city gross receipts tax (code 341-1), for 7.2 percent.
Lodging stays under 28 days and many visitor-oriented businesses during the tourism season: the 1.5 percent tourism tax as well.

Rally Rates

For the 2026 rally, the Department of Revenue listed 7.7 percent for goods and services and 8.7 percent for food and alcohol in Sturgis, and 5.7 percent outside city limits. Motorcycle rentals were 11.9 percent in a city and 9.9 percent outside one. Because Meade County's half-percent tax begins January 1, 2027 and the state rate is scheduled to rise on July 1, 2027, rally rates for August 2027 will be higher than 2026 rates; we will confirm them when the department publishes the 2027 table.

Temporary Vendors

Every rally vendor, including nonprofits, wholesalers and display-only booths, needs a new temporary South Dakota sales tax licence each year, one for each location, even if the business already holds a permanent licence. First-time vendors post a $500 bond, refunded after the final return is filed and paid. Inside city limits, a city temporary vending licence is also required, costing $560 to $1,500 depending on square footage in 2026.

Room and Home Rentals

The Department of Revenue says individuals renting a room in their home for 10 or more days a year must collect sales tax. In Sturgis the room rental rate is 8.7 percent: 4.2 percent state tax, 1.5 percent tourism tax and 3 percent city tax. Outside city limits, the city portion does not apply. Bookings through an online marketplace are generally taxed by the marketplace; direct bookings are the owner's responsibility.

Campgrounds and Parking

Campsite rentals are lodging for sales tax purposes, and charges for parking are generally taxable services. Landowners who charge visitors directly need a licence and must file for the period.

Local Contractors

Contractors building or remodelling in Sturgis owe the 2 percent contractor's excise tax on realty improvements and sales or use tax on materials, and they need a city licence. Temporary structures for the rally may also be realty improvements depending on how they are built and attached.

Filing

We prepare permanent and temporary returns, reconcile rally sales to deposits and card reports, track marketplace sales and update rates for January and July 2027.

Admissions and Events

Ticketed concerts, races and other rally events are admissions subject to state tax and the city's gross receipts tax inside Sturgis, plus the tourism tax during the rally. Promoters and venues should agree in advance who collects and remits the tax on tickets sold through outside platforms.

Use Tax on Rally Supplies

Supplies bought out of state for use at the rally, such as signs, fencing and equipment, are subject to South Dakota use tax if no sales tax was paid.

Promoters selling tickets online should also check that the platform charges the correct Sturgis rate for the event date.