Commencing September 1, 2011, an occupational tax in the amount of $2.00 per night
shall be imposed upon the above hotels, motels or lodging establishments based upon
rooms rented to transient guests. This occupation tax shall be fair, equitable and
uniform as to class. No occupational tax may be imposed on any transient guest who
has been offered a room by a lodging establishment on a complimentary basis whereby
no fee or rent is charged for such room or upon any transient guest who is representing
an entity which is exempt from sales tax pursuant to SDCL 10-45-10. Additionally,
no occupational tax may be imposed on any room utilized by a transient guest who stays
twenty-eight (28) or more consecutive nights. This tax rate may be adjusted by the
city commission in accordance with SDCL § 9-55-16. For lodging establishments which
have less than 25 rooms and voluntarily participating in the occupational tax, no occupational tax
shall be imposed on any room utilized by a transient guest who stays seven (7) or
more consecutive nights.
