ARTICLE
The South Dakota Department of Revenue (DOR) is taking steps to ensure that businesses understand and properly apply the Municipal Gross Receipts Tax (MGRT). Recent reviews indicate that some businesses may not be applying the tax correctly. To address this, the DOR is launching outreach efforts focused on education, guidance, and voluntary compliance. As part of this initiative, businesses may receive a call or visit from a DOR Revenue Agent. These contacts are not enforcement actions. Instead, they are designed to provide clarity, education, and resources so businesses can meet their tax obligations with confidence. MGRT, also known as the Bed, Board, and Booze Tax (BBB), does not exist in every community. Communities self-impose the 1% MGRT tax through city ordinances. Click here for a list of communities that have imposed the tax and the applicable sales (alcohol, admission to certain events, food for immediate consumption, and or lodging); the list starts on page 6. Per SDCL 10-52A-2, MGRT applies to prepared food for immediate consumption. Prepared food is defined in SDCL 10-45-1. Click here for more information about MGRT. Click here for more information about its application to prepared food.
The South Dakota Department of Revenue (DOR) is taking steps to ensure that businesses understand and properly apply the Municipal Gross Receipts Tax (MGRT). Recent reviews indicate that some businesses may not be applying the tax correctly. To address this, the DOR is launching outreach efforts focused on education, guidance, and voluntary compliance.
As part of this initiative, businesses may receive a call or visit from a DOR Revenue Agent. These contacts are not enforcement actions. Instead, they are designed to provide clarity, education, and resources so businesses can meet their tax obligations with confidence.
Click here for more information about MGRT. Click here for more information about its application to prepared food.