Information from NADA Title & Registration Textbook 2004

South Dakota Sales or Use Tax Applicable to Registration

None – In lieu of 4% sales and use taxes an EXCISE TAX at the rate of 3% is imposed on MOST motor vehicle transactions. This excise tax is based on the purchase price as shown under “PURCHASE PRICE” on the reverse side of the Application for Motor Vehicle Title & Registration and the reverse side of the Boat Registration Application & Transfer of Ownership documents. Credit is given for a TRADE-IN. When a customer receives two vehicles from a dealer in exchange for one vehicle on an even exchange, and no money changes hands, a Bill of Sale or purchase order should reflect even trade and no dollars information on both vehicles received required when registering. RECIPROCITY will be granted to applicants who have previously registered their vehicle in another state which charges an equal amount of tax and who have paid the tax. A NON-RESIDENT is EXEMPT from the excise tax on a vehicle purchased in South Dakota for registration in the home stat of the non-resident purchaser. MILITARY PERSONNEL are NOT EXEMPT from the motor vehicle Excise Tax if they register their vehicle in South Dakota unless they qualify under reciprocity requirement (previously registered vehicle in another state and paid a similar and equal amount of tax). For information on “TAX EXEMPTIONS” please refer to this document.Click to view attachment