South Dakota Administrative Rules — Title 64 (Revenue)

ARSD § 64:06:02:85 — Real estate brokers

Any commission received
by a real estate broker or agent, under any type of agency agreement, is
subject to the state sales tax unless the commission is otherwise specifically
exempted. Any fee originating from the sale of real property sold in the state
of South Dakota, regardless of the broker's or agent's residence,
is subject to sales tax. Municipal sales tax applies to any sale of real
property located within the municipality's limits.

Last amended: Source: 17 SDR 4, effective July 18, 1990; 28 SDR 178, effective July 1, 2002 General Authority: SDCL 10-45-47.1(3). Law Implemented: SDCL 10-45-5.2. Examples: (1) A real estate broker takes a listing on a home in Pierre. Under the multiple listing agreement, another agent sells the property. The listing broker collects the commission and the state and city sales tax. The broker then distributes the selling agent's percentage of the commission and the applicable sales tax to the selling agent. T

Source: official text