South Dakota law does not explicitly permit or prohibit the practice of subleasing. Therefore, the language included in the original lease will determine whether a tenant can sublet or not. Typically, the lease will require the landlord’s consent before subleasing can take place. Tenants should read their lease carefully.

If the lease is silent or unclear about subleasing, the tenant should contact their landlord before proceeding. When a landlord’s consent is necessary, consider using a Landlord Consent Form.

Gross receipts from the rental of sleeping accommodations to transient guests (a short-term rental) are subject to state sales and tourism taxes. In South Dakota, a transient guest is any person who stays for a duration of fewer than 28 days. Additional local taxes may be levied by each municipality.

South Dakota short-term rental taxes:^[1]

• 4.2% state sales tax
• 1.5% state tourism tax
• Applicable municipal gross receipts tax
• Applicable municipal sales tax
• Applicable municipal Room Occupancy and BID fees

While it is not uniformly required across the state for short-term rentals, some municipalities impose Room Occupancy and Business Improvement District fees on transient rentals.