CraftShow Events

Sales Tax for Craft Show Vendors in South Dakota

Last researched September 14, 2026 Sources: South Dakota Department of Revenue High confidence

Short answer

Craft vendors at most South Dakota special events do not need a sales tax license, but every sale is taxable: state sales tax (4.2%), any municipal tax and tourism tax [1]. Unlicensed vendors file the special event return supplied by the organizer, due the 20th of the following month [1]. The Sturgis Rally and State Fair require a temporary license [1]. Year-round sellers with a physical presence need a regular license [2].

Registration
Sales tax license (temporary license required only for Sturgis Rally and State Fair; other special events use organizer-provided special event return)
Cost
Not stated on official pages reviewed
State base rate
4.2% As of: 2025-09 (Special Events tax fact dated September 2025). Local taxes may apply.
Event organizers have duties?
Yes
Official registration
https://apps.sd.gov/rv23cedar/main/main.aspx

Who needs to register

  • Craft fairs count as special events: "A special event is any craft fair, vendor show, trade show, fair, exhibition, exposition, or other temporary event" [1].
  • For ordinary events no license is required: "No, you do not need a license to be a vendor at any other special events." [1]
  • Sturgis Rally vendors need a temporary license: "you must obtain a temporary South Dakota sales tax license if you will be a vendor at the Sturgis Rally" [1].
  • State Fair vendors also need one: "you must obtain a temporary South Dakota sales tax license if you will be a vendor at the state fair" [1].
  • Out-of-state vendors attending one event still collect: "Yes, all sales in South Dakota are subject to South Dakota sales tax." [1]
  • Businesses with an ongoing presence must be licensed: "Any business with a physical presence in South Dakota is required to be licensed for sales tax collection." [2]
  • Statute requires retailers to apply for a permit: "shall file with the Department of Revenue, an application for a permit" [4].

The permit or registration

  • Permanent licenses are obtained online: "Register for a South Dakota sales tax license using the online Tax License Application." [2]
  • The temporary Sturgis/State Fair license applies even to existing licensees: "file the Sturgis Rally special event return even if you have a South Dakota sales tax license" [1]
  • First-time Sturgis Rally vendors post a bond: "If you are a first-time vendor, you must post a $500 bond." [3]
  • The license fee (if any) was not stated on the official pages reviewed (see gaps).

Collecting and filing

  • All event sales are taxable: "All sales at a special event are subject to the state sales tax, applicable municipal sales tax" (plus municipal gross receipts and tourism tax) [1]
  • State rate: "The state sales and use tax rate is 4.2%." [2]
  • Tourism tax applies at special events: "Special events are spectator events where tourism tax applies." [1]
  • Licensed vendors use their regular return: "you will report the special event sales on your next scheduled sales tax return." [1]
  • Unlicensed vendors: "you will file the special event return that the event organizer provides." [1]
  • Due date: "The return is due on the 20th of the following month from the event date." [1]
  • Returns are mandatory even with no sales: "All returns must be filed, even if you have no sales to report or are reporting sales on a permanent license." [1]
  • No small-sales threshold: "No, there is no minimum. The sales tax applies to all sales." [1]
  • Expenses are not deductible: "There are no deductions for expenses." [1]
  • Late penalty: "A penalty of 10% (.10) of the tax liability is assessed if a return is not received" within the stated period; "The minimum penalty is $10" [1].

Organizer / promoter obligations

  • Organizers should notify DOR: "Organizers of a special event should notify the local DOR office about the event." [1]
  • DOR supplies vendor forms: "The department will provide tax information and tax return forms for the vendors attending the event." [1]
  • Organizer charges are taxable: "Charges for admissions, booth rentals or other vendor fees are subject to sales tax." [1]
  • No event size minimum: "There is no minimum size requirement." [1]

Food and other special cases

  • Qualifying fundraisers may be exempt: "Certain qualifying fundraising events do not owe sales tax on sales made." [1]
  • Fundraiser limit: "The fundraising activities cannot be for more than 3 consecutive dates." [1]
  • Display-only exhibitors with nothing for sale: "If you are only displaying a product, and have no products available for sale" they mark the special event return Display Only and send it to DOR [1].
  • Giveaways: "Use tax is due on items given away (i.e. promotional items)" [1].
  • Tourism tax exception: "Tourism tax does not apply at farmers markets." [1]
  • Municipal taxes may also apply to eating establishments: "The municipality may also have an additional gross receipts tax on lodging, eating establishments, alcoholic beverages" [1].

Sources

  1. South Dakota DOR, Special Events tax fact (September 2025) — https://dor.sd.gov/media/wo2bl1yu/specialevents.pdf — license rules for special events, Sturgis/State Fair, taxes applied, filing, organizer duties, exemptions.
  2. South Dakota DOR, Sales & Use Tax page — https://dor.sd.gov/businesses/taxes/sales-use-tax/ — 4.2% state rate, who needs a license, online application.
  3. South Dakota DOR, Sturgis Motorcycle Rally page — https://dor.sd.gov/businesses/sturgis-motorcycle-rally/ — $500 bond for first-time rally vendors.
  4. SDCL 10-45-24 (South Dakota Legislature) — https://sdlegislature.gov/api/Statutes/10-45-24.html — statutory requirement to apply for a retailer permit.

What we could not confirm

  • Confidence: high. The Department's dedicated Special Events tax fact (September 2025) directly addresses craft fairs, licensing, filing and organizer duties.
  • Gap: the cost of a regular or temporary sales tax license was not stated on the official pages reviewed.
  • Gap: the tourism tax rate could not be read reliably from the PDF table layout, so it is not stated.
  • Date-sensitive: the 4.2% state rate is shown on an undated web page (checked 2026-09-14) and in the September 2025 tax fact; confirm it has not changed before publishing.
  • Sturgis Rally and State Fair returns have different due dates than other events (source 1); those dates were not researched.
  • Municipal rates vary by city; see DOR rate lookup.