Yes.
South Dakotans could pay a record amount of point-of-sale taxes when combining all of the possible taxes across sectors and municipalities.
An ad from Dusty for Governor claims that Larry Rhoden's and Jon Hansen supported legislation that led to the "highest tax rate in South Dakota's history."
The claim is only true when factoring in all of the possible taxes at a point of purchase for certain products and services in certain locations.
Point-of-sale taxes include the state sales tax (4.2%, which is increasing back to 4.5% in 2027), municipal sales tax (1-2%) plus a 1.5% tourism tax and 1% municipal “bed, board and booze” tax when applicable.
In an effort to allow cities and counties to lower property taxes, the South Dakota Legislature voted in January to allow counties to add an additional 0.5% tax. Municipalities can add 1% to help fund special projects.
This fact brief responds to conversations such as this one.
Sources
Google Ad Transparency Center, Dusty for Governor ad
Sales Tax Institute, South Dakota
South Dakota Searchlight, Yes, sales taxes in South Dakota can add up to 10%
South Dakota Department of Revenue, Sales and Use Tax
South Dakota Department of Revenue, Municipal Tax Guide
South Dakota Department of Revenue, Tax Guide for County Officials
KELO-TV, Senate passes HB 1245, giving cities a new tax tool that could raise local sales taxes for capital projects
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