Short-Term Rental Laws in Sioux Falls, South Dakota

Sioux Falls — South Dakota's largest city and regional commercial center — permits STRs broadly across residential and commercial zones with business license + lodging tax registration + life-safety standards. No primary-residence requirement, no nights cap, no zoning-class ban. Sanford Health + Avera Health regional medical traffic, business-travel demand, and weekend leisure traffic drive STR demand. Downtown Sioux Falls (Phillips + Main Avenue blocks) and the McKennan Park / Cathedral Historic District have the highest residential STR concentration.

Zoning: STRs permitted in RA-1, RA-2 single-family residential, RD-1, RD-2 duplex/multi-family, MR multi-family residential, OR office residential, NC neighborhood commercial, GC general commercial, and DC downtown commercial zones. The Cathedral Historic District + McKennan Park Historic District + Pettigrew Heights Historic District layers add design-review overlay through the Sioux Falls Board of Historic Preservation for exterior modifications.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Sioux Falls Planning + Development Services + Finance Office jointly administer. Annual business license + STR registration. Application requires designated 24/7 local contact, proof of property insurance, life-safety self-certification, parking plan. Finance Office collects Lodging Tax + city sales tax monthly. Operating unlicensed: administrative penalty + back-tax assessment. Enforcement primarily complaint-driven.

Combined short-term lodging tax in Sioux Falls is approximately 11.500% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

South Dakota State sales tax 4.2% + South Dakota Tourism Tax 1.5% + Minnehaha County + Sioux Falls city sales 2% + Sioux Falls Lodging Tax 1% + Visit Sioux Falls assessment ~2% — combined ~11.5% on transient lodging; confirm at Sioux Falls Finance Office

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.