CHAPTER 32-5B
EXCISE TAX ON MOTOR VEHICLES
32-5B-1 Imposition of tax--Rate--Failure to pay as misdemeanor.
32-5B-1.1 Licensing and payment of tax on leased vehicles--Assessment of tax upon purchase by lessee--Lessor to assign title and certify price, fees and title.
32-5B-1.2 Leasing or rental company separate from dealership--Distinct name--Daily rental operations--Exemption from excise tax.
32-5B-1.3 Licensing and titling of used vehicle by dealer--Payment of tax by subsequent purchaser.
32-5B-1.4 Licensing and payment of excise tax on new vehicle by dealer.
32-5B-1.5 Payment of excise tax by dealer required to take title--Subsequent purchaser not exempt.
32-5B-2 Exempt vehicles.
32-5B-2.1 32-5B-2.1. Repealed by SL 1990, ch 230, § 7.
32-5B-2.2 Exemption for self-propelled agricultural application unit.
32-5B-3 Dealer's inventory exempt--Filing required.
32-5B-4 Purchase price defined.
32-5B-4.1 Insurance check included in trade-in value.
32-5B-5 32-5B-5. Repealed by SL 2014, ch 144, § 1.
32-5B-6 Use of dealers' guide for used motor vehicles.
32-5B-7 32-5B-7. Repealed by SL 1987, ch 222, § 1.
32-5B-8 Fixing value, capacity, and weight of rebuilt or foreign vehicle.
32-5B-9 Information to be presented by new owner of vehicle--Falsification as felony.
32-5B-10 Payment of tax.
32-5B-11 Credit for taxes paid to this or another state.
32-5B-12 Proration of tax on proportionally registered vehicles.
32-5B-13 32-5B-13. Repealed by SL 2005, ch 157, § 3.
32-5B-14 Title issuance or transfer prohibited unless tax paid--Exception.
32-5B-15 Rules authorized.
32-5B-16 Records required of sellers--Inspection.
32-5B-17 Disposition of revenue.
32-5B-18 "Siblings" defined.
32-5B-19 Rental vehicle and leased vehicle defined.
32-5B-20 Gross receipts tax on vehicle rental--Violation as misdemeanor.
32-5B-21 Applicability of tax on leased vehicles--Leasing information required.
32-5B-22 No tax refund for early termination of lease.
32-5B-23 Tax on vehicles leased in another state--Credit for tax paid to another state.
32-5B-24 Tax credit for total loss of leased vehicle.
32-5B-25 Excise taxes on off-road vehicles deposited in general fund.
32-5B-1. Imposition of tax--Rate--Failure to pay as misdemeanor.
In addition to all other license and registration fees for the use of the highways, a person shall pay an excise tax at the rate of four percent on the purchase price of any motor vehicle, as defined by § 32-3-1 or 32-5B-21, purchased or acquired for use on the streets and highways of this state and required to be registered under the laws of this state. A person shall pay an excise tax at the rate of four percent on the purchase of an off-road vehicle as defined by § 32-3-1 and required to be titled pursuant to § 32-20-12. This tax shall be in lieu of any tax levied by chapters 10-45, 10-46, and 10-46E on the sales of such vehicles. Failure to pay the full amount of excise tax is a Class 1 misdemeanor.
Source: SL 1985, ch 241, § 1; SL 1988, ch 236, § 21; SL 2000, ch 145, § 1; SL 2015, ch 68, § 3; SL 2015, ch 165, § 5, eff. Apr. 1, 2015; SL 2016, ch 159, § 1.
32-5B-1.1. Licensing and payment of tax on leased vehicles--Assessment of tax upon purchase by lessee--Lessor to assign title and certify price, fees and title.
For motor vehicles leased for more than twenty-eight days, the lessor shall title and license the motor vehicle and denote the lessee on the application for title. The lessor or the lessee shall pay the motor vehicle excise tax. If the term of the lease is extended or if the vehicle is leased for an additional period of time, the motor vehicle excise tax shall be assessed on the additional lease payments and shall be paid by the lessor. If additional consideration is paid during the course of the lease or upon the termination of the lease, the motor vehicle excise tax shall be assessed upon such amount and paid by the lessor. If a lessee buys the leased vehicle at the end of the lease, excise tax shall be assessed on the purchase prices in § 32-5B-4. The lessor shall assign the title to the lessee and shall deliver it to the county treasurer of the applicant's residence, along with an application certifying the price of the vehicle and the required fees and taxes.
A lessee who entered into a lease prior to July 1, 2000, and who paid excise tax based on the purchase price of the vehicle, including the value of the leased vehicle at the end of the lease, shall receive credit for tax previously paid if the lessee purchases the vehicle at the end of the lease.
An off-road vehicle, as defined by § 32-3-1 and required to be titled pursuant to § 32-20-12 and is titled in this state, that is leased for more than twenty-eight days, is subject to the provisions of this section.
Source: SL 1986, ch 248, § 2; SL 1994, ch 245, § 2; SL 1995, ch 175, § 1; SL 2000, ch 145, § 2; SL 2001, ch 166, § 1; SL 2022, ch 93, § 1.
32-5B-1.2. Leasing or rental company separate from dealership--Distinct name--Daily rental operations--Exemption from excise tax.
Any leasing or rental company which operates within the principal place of business of a dealer, licensed pursuant to chapter 32-6B, is a business separate from the dealership for the purposes of this chapter. A leasing company shall title, license, and tax any leased vehicle which is leased for more than twenty-eight days in a name that is distinct and separate from that of the dealership name as indicated on the dealer license under chapter 32-6B. If the lessee is a rental company leasing vehicles for use in a daily rental operation, neither the lessor nor the lessee is required to pay the excise tax. In order to be exempt, the rental company shall be indicated on the title as the lessee. A rental company shall title and license any rental vehicle which is rented for twenty-eight days or less which is part of the rental company in a name that is distinct and separate from that of the dealership name as indicated on the dealer license under chapter 32-6B.
Source: SL 1986, ch 248, § 3; SL 1988, ch 246; SL 1993, ch 219, § 7; SL 1994, ch 245, § 4.
32-5B-1.3. Licensing and titling of used vehicle by dealer--Payment of tax by subsequent purchaser.
A licensed motor vehicle dealer may license a used motor vehicle which is part of his inventory. If the dealer licenses the motor vehicle, he shall title the motor vehicle, but is exempt from the motor vehicle excise tax. A licensed dealer may title the vehicle without licensing it. Any vehicle titled by a dealer but not licensed is exempt from the motor vehicle excise tax. A subsequent purchaser shall pay the excise tax. This section does not apply to those motor vehicles required to be titled pursuant to § 32-5-27.
Source: SL 1986, ch 247, § 1; SL 1987, ch 219, § 1; SL 1993, ch 225, § 1.
32-5B-1.4. Licensing and payment of excise tax on new vehicle by dealer.
A licensed motor vehicle dealer who sells new motor vehicles and has a franchise for that particular motor vehicle may license a new motor vehicle which is part of the dealer's inventory. If the dealer licenses the motor vehicle, the dealer shall title the motor vehicle and pay the excise tax imposed pursuant to § 32-5B-1 on the actual purchase price of the motor vehicle.
Source: SL 1987, ch 219, § 2; SL 1988, ch 236, § 22; SL 2015, ch 165, § 6, eff. Apr. 1, 2015; SL 2017, ch 132, § 1.
32-5B-1.5. Payment of excise tax by dealer required to take title--Subsequent purchaser not exempt.
Except as provided in § 32-5-27, any dealer who is required by law to take title to a motor vehicle, or required to take title to a motor vehicle for the purpose of resale because of the requirements of his dealer license, shall pay the excise tax established in § 32-5B-1 and the next purchaser is not exempt from the excise tax on the subsequent purchase.
Source: SL 1988, ch 236, § 23.
32-5B-2. Exempt vehicles.
Motor vehicles exempted from the provisions of this chapter are as follows:
(1) Any motor vehicle exempted in § 32-5-1.3, 32-5-42, 32-5-42.1, or 32-5-42.2;
(2) Any motor vehicle acquired by inheritance from or bequest of a decedent;
(3) Any motor vehicle previously titled or licensed jointly in the names of two or more persons and subsequently transferred without consideration to one or more of such persons;
(4) Any motor vehicle transferred without consideration between spouses, between a parent and child, and between siblings;
(5) Any motor vehicle transferred pursuant to any mergers or consolidations of corporations or limited liability companies, or plans of reorganization by which substantially all of the assets of a corporation or limited liability company are transferred if the motor vehicle was previously titled, licensed, and registered in this state;
(6) Any motor vehicle transferred by a subsidiary corporation or limited liability company to its parent corporation or limited liability company for no or nominal consideration or in sole consideration of the cancellation or surrender of the subsidiary's stock if the motor vehicle was previously titled, licensed, and registered in this state;
(7) Any motor vehicle transferred between an individual and a corporation if the individual and the owner of the majority of the capital stock of the corporation are one and the same, or any motor vehicle transferred between an individual and a limited liability company if the individual and the majority member of the limited liability company are one and the same, and if the motor vehicle was previously titled, licensed, and registered in this state;
(8) Any motor vehicle transferred between a corporation or limited liability company and its stockholders, members, or creditors if to effectuate a dissolution of the corporation or limited liability company it is necessary to transfer the title from the corporate entity or limited liability company to the stockholders, members, or creditors and if the motor vehicle was previously titled, licensed, and registered in this state;
(9) Any motor vehicle transferred between an individual and a limited or general partnership if the individual and the owner of the majority interest in the partnership are one and the same person and if the motor vehicle was previously titled, licensed, and registered in this state;
(10) Any motor vehicle transferred to effect a sale of all or substantially all of the assets of the business entity if the motor vehicle was previously titled, licensed, and registered in this state;
(11) Any motor vehicle acquired by a secured party or lien holder in satisfaction of a debt;
(12) Any motor vehicle sold or transferred that is eleven or more model years old and that is sold or transferred for two thousand five hundred dollars or less before trade-in;
(13) Any damaged motor vehicle transferred to an insurance company in the settlement of an insurance claim;
(14) Any motor vehicle owned by a former resident of this state who returns to the state and who had previously paid vehicle excise tax to this state on the motor vehicle as evidenced within the department's records or by submission of other acceptable proof of payment of such tax;
(15) Any motor vehicle transferred between corporations, both subsidiary and nonsubsidiary, if the individuals who hold a majority of stock in the first corporation also hold a majority of stock in the second corporation; but these individuals need not hold the same ratio of stock in both corporations and if the motor vehicle was previously titled, licensed, and registered in this state;
(16) Any motor vehicle transferred between limited liability companies, both subsidiary and nonsubsidiary, if the individuals who hold a majority interest in the first limited liability company also hold a majority interest in the second limited liability company and if the motor vehicle was previously titled, licensed, and registered in this state;
(17) Any motor vehicle transferred by a trustor to a trustee or from a trustee to a beneficiary of a trust;
(18) Any motor vehicle rented for twenty-eight days or less is subject to the tax imposed by § 32-5B-20;
(19) Any motor vehicle transferred without consideration to any South Dakota nonprofit organization that is exempt under § 501(c)(3) of the Internal Revenue Code and that will donate the motor vehicle to a needy family or individual; and
(20) Any motor vehicle transferred without consideration to any South Dakota nonprofit organization that is exempt under § 501 (c)(3) of the Internal Revenue Code and that sells the motor vehicle within forty-five days of the transfer.
Source: SL 1985, ch 241, § 3; SL 1986, ch 242, § 20; SL 1987, ch 220; SL 1987, ch 222, § 2; SL 1988, ch 241, § 2; SL 1988, ch 247; SL 1990, ch 230, § 6; SL 1990, ch 234, § 2; SL 1990, ch 238; SL 1991, ch 395, § 2; SL 1993, ch 225, § 2; SL 1994, ch 245, § 3; SL 2006, ch 160, § 1; SL 2007, ch 175, § 1; SL 2014, ch 139, § 4; SL 2014, ch 140, § 4; SL 2016, ch 160, § 1; SL 2016, ch 161, § 1.
32-5B-2.2. Exemption for self-propelled agricultural application unit.
Any self-propelled agricultural application unit that is purchased for use in this state is exempt from the provisions of this chapter and chapters 32-3 and 32-5. For purposes of this section, the term, self-propelled agricultural application unit, is defined as equipment designed and used exclusively to carry and apply fertilizer, pesticides, or related products for agricultural purposes. This term does not include an application unit attached to a motor vehicle chassis.
Source: SL 2022, ch 94, § 2.
32-5B-3. Dealer's inventory exempt--Filing required.
Any used, licensed motor vehicle which is in the inventory of a motor vehicle dealer on May 31, 1985, is exempt from the provisions of § 32-5B-1. However, to qualify for this exemption, each motor vehicle dealer shall file on or before June 3, 1985, with the Department of Revenue and the county treasurer, a verified list of used, licensed motor vehicles on inventory.
Source: SL 1985, ch 241, § 3A; SL 2004, ch 17, § 77; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
32-5B-4. Purchase price defined.
For the purposes of this chapter, the purchase price is:
(1) For a new motor vehicle sale or lease, the total consideration whether received in money or otherwise. However, when a motor vehicle is taken in trade as a credit or part payment on a new motor vehicle, the credit or trade-in value allowed by the seller shall be deducted from the total consideration for the new motor vehicle to establish the purchase price;
(2) For a used motor vehicle sold or leased by a licensed motor vehicle dealer, the total consideration for the used motor vehicle whether received in money or otherwise. However, when a motor vehicle is taken in trade by the dealer as a credit or part payment on a used motor vehicle, the credit or trade-in value allowed by the dealer shall be deducted from the consideration so that the net consideration is established;
(3) For a used motor vehicle sold, leased, or transferred by any person other than a licensed motor vehicle dealer, the total consideration received in money or otherwise. However, when a motor vehicle is taken in trade as a credit or part payment on a used motor vehicle, the credit or trade-in value shall be deducted from the total consideration so that the net consideration is established. The purchaser and seller of the motor vehicle shall submit to the county treasurer a bill of sale, approved and supplied by the secretary. If a bill of sale is not submitted, the excise tax will be assessed on the retail value as stated in a nationally recognized dealers' guide as approved by the secretary of revenue. If the excise tax is assessed on the retail value, the value of the motor vehicle taken in as credit on trade-in shall be the retail value as stated in the nationally recognized dealers' guide;
(4) For a new or used motor vehicle acquired by gift or other transfer for no or nominal consideration, the manufacturers' suggested dealer list price for new motor vehicles and for used motor vehicles the retail value stated in a nationally recognized dealers' guide approved and furnished by the secretary of revenue;
(5) For a motor vehicle manufactured by a person who registers it under the laws of this state, the amount expended for materials, labor, and other properly allocable costs of manufacture or in the absence of actual expenditures for the manufacture of a part or all of the motor vehicle, the reasonable value of the completed motor vehicle;
(6) For a rebuilt motor vehicle, upon its initial registration and titling, the total consideration for the salvage vehicle, whether received in money or otherwise, and the total consideration for any assemblies, subassemblies, parts, or component parts used;
(7) For either a new or used motor vehicle, as defined by § 32-5B-21, which is a closed lease, the total consideration whether received in money or otherwise. Total consideration is all lease payments including cash, rebates, the net trade-in, extended warranties, administrative fees, acquisition fees, or any other fees assessed on the purchase of the vehicle. Total consideration does not include title fees, registration fees, vehicle excise tax paid pursuant to §§ 32-5B-1, 32-5B-1.1, and 32-5B-21 to 32-5B-24, inclusive, federal excise taxes attributable to the sale of the vehicle to the owner or to the lease of the vehicle by the owner, insurance, and refundable deposits;
(8) For either a new or used motor vehicle, as defined by § 32-5B-21, which is leased, and the terms of the lease are either not certain at the time the lease contract is executed or the lease is open ended, the purchase price shall be the total consideration whether received in money or otherwise. Total consideration includes the purchase price of the vehicle, plus cash, rebates, the net trade-in, extended warranties, administrative fees, acquisition fees, or any other fees assessed on the purchase of the vehicle. Total consideration does not include title fees, registration fees, vehicle excise tax paid pursuant to §§ 32-5B-1, 32-5B-1.1, and 32-5B-21 to 32-5B-24, inclusive, federal excise taxes attributable to the sale of the vehicle to the owner or to the lease of the vehicle by the owner, insurance, and refundable deposits.
Source: SL 1985, ch 241, § 2; SL 1986, ch 248, § 1; SL 1986, ch 249; SL 1987, ch 221; SL 1987, ch 222, § 3; SL 1989, ch 259, § 3; SL 2000, ch 145, § 3; SL 2001, ch 166, § 2; SL 2004, ch 17, § 78; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2013, ch 139, § 1.
32-5B-4.1. Insurance check included in trade-in value.
For the purposes of § 32-5B-4, the credit or trade-in value of any damaged motor vehicle may include the value of any check from an insurance company which is intended to cover the damages to the motor vehicle.
Source: SL 1992, ch 211.
32-5B-6. Use of dealers' guide for used motor vehicles.
On used motor vehicles, the county treasurer shall, for the purpose of this chapter, use the most generally used and approved nationally recognized dealers' guide provided by the secretary of revenue. For those cases of vehicles not covered by the provided dealer guides the county treasurer shall seek assistance from the department.
Source: SDC 1939, § 44.0108 (9) as added by SL 1951, ch 224, § 1; SL 1957, ch 210; SL 1961, ch 219; SL 1966, ch 129; SDCL § 32-5-35; SL 1980, ch 213, § 3; SL 1982, ch 18, § 12; SL 1985, ch 241, § 18; SL 2004, ch 17, § 80; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2014, ch 144, § 2.
32-5B-8. Fixing value, capacity, and weight of rebuilt or foreign vehicle.
The secretary may fix the value, carrying capacity, and weight of any rebuilt or foreign vehicle or on any vehicle on which a record of the value, carrying capacity, or weight is not available in his office.
Source: SL 1957, ch 240, § 1; SDC Supp 1960, § 44.0108-1; SDCL, § 32-5-36; SL 1980, ch 213, § 4; SL 1985, ch 241, § 19; SL 1986, ch 242, § 21.
32-5B-9. Information to be presented by new owner of vehicle--Falsification as felony.
The new owner of a motor vehicle, or with written authorization, any other person as defined by subdivision 2-14-2(18) on behalf of and as the agent for the new owner, shall present to the county treasurer in the county of the new owner's residence the manufacturer's or importer's statement or certificate of origin or the assigned certificate of title and a properly endorsed motor vehicle purchaser's certificate. The motor vehicle purchaser's certificate shall be on a form to be furnished by the Department of Revenue through the county treasurer's office. The certificate shall contain a complete description of the motor vehicle, the owner's name and address, the previous owner's name and address, the full purchase price as defined by § 32-5B-4 and how computed, the trade-in allowance and description of the trade, if any, and any other relevant information the Department of Revenue may require. However, for a motor vehicle licensed and registered pursuant to chapter 32-10, the manufacturer's or importer's statement or certificate of origin or an assigned certificate of title and a properly endorsed motor vehicle purchaser's certificate shall be presented to the Department of Revenue. Any person who intentionally falsifies information on the certificate is guilty of a Class 6 felony.
Source: SL 1985, ch 241, § 4; SL 2000, ch 141, § 2; SL 2004, ch 17, § 81; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
32-5B-10. Payment of tax.
The tax levied by § 32-5B-1 shall be paid to the county treasurer in the county of the new owner's residence. However, for a motor vehicle licensed and registered pursuant to chapter 32-10, the tax shall be paid to the Department of Revenue.
Source: SL 1985, ch 241, § 5; SL 2004, ch 17, § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
32-5B-11. Credit for taxes paid to this or another state.
If any motor vehicle has been subjected previously to a sales tax, use tax, motor vehicle excise tax, or similar tax by this or any other state or its political subdivision, no tax is owed to this state if the tax has been paid by the applicant to this or any other state or its political subdivision. Additionally, any part used in a rebuilt motor vehicle or motor vehicle manufactured by an applicant, previously subjected to sales tax, use tax, motor vehicle excise tax, or similar tax by this or any other state or its political subdivision, is not subject to the tax levied by this chapter, if the applicant applies for registration of the motor vehicle in this state within five years from the purchase date of the part. If the amount of tax levied and paid is the same or more than the amount of tax levied by this chapter, no tax or refund is due under this chapter. The county treasurer shall require of all applicants making application for registration of a motor vehicle in this state an affidavit of a licensed dealer, bill of sale, receipt, or other tangible evidence that the amount of tax has been paid by the current applicant. If sufficient proof is not furnished, the county treasurer must collect the tax levied by § 32-5B-1 on the retail value of the motor vehicle listed in a national motor vehicle valuation service. The value must be the retail value of the motor vehicle on the day it entered the state. If a motor vehicle, after being taxed by this chapter or granted an exemption from part or all of the motor vehicle excise tax by this section, is sold or traded, the vehicle does not again qualify for an exemption by this section, if the vehicle is repurchased by the same applicant.
Source: SL 1985, ch 241, § 7; SL 1986, ch 242, § 24; SL 1993, ch 219, § 8; SL 2013, ch 139, § 2; SL 2024, ch 114, § 1.
32-5B-12. Proration of tax on proportionally registered vehicles.
If a motor vehicle is licensed and registered pursuant to chapter 32-10, the excise tax imposed by § 32-5B-1 shall be prorated in accordance with the formula established in the International Registration Plan as amended as of January 1, 2021. Such motor vehicles and trailer units are exempt from a percentage of the excise tax, equal to the percentage of total fleet miles driven outside of this state. The mileage period used to calculate the exempt percentage shall be the same as used by the International Registration Plan for purposes of apportionally registering the vehicles. To qualify for this exemption, the registrant shall maintain all records required to be kept by the International Registration Plan. The records shall be maintained for a period of time equal to that required by the International Registration Plan for audit purposes to insure that the proper amount of tax was paid.
Source: SL 1978, ch 225, § 1; SDCL Supp, § 32-5-32.1; SL 1985, ch 241, § 16; SL 1989, ch 257, § 109; SL 1993, ch 219, § 9; SL 2021, ch 125, § 7.
32-5B-14. Title issuance or transfer prohibited unless tax paid--Exception.
No title may be issued or transferred for the ownership of any motor vehicle unless the tax levied by § 32-5B-1 is paid, except as provided in subdivision 32-5B-2(12) and vehicles taxed pursuant to § 32-5B-20.
Source: SL 1985, ch 241, § 6; SL 1988, ch 236, § 24; SL 1994, ch 245, § 8.
32-5B-15. Rules authorized.
The secretary of revenue may promulgate rules pursuant to chapter 1-26 concerning:
(1) Which motor vehicles are subject to tax;
(2) The actual value and purchase price of motor vehicles subject to tax;
(3) The supporting documents required to be furnished to verify actual value or purchase price; and
(4) The application of the tax and exemptions.
Source: SL 1985, ch 241, § 10; SL 1987, ch 82, § 48; SL 2004, ch 17, § 83; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
32-5B-16. Records required of sellers--Inspection.
Any seller of a motor vehicle or snowmobile shall, on demand by the secretary of revenue, make available all books, records, and memoranda which relate to the sale of a motor vehicle or snowmobile. The secretary, in the event of any failure or refusal to produce the records, may conduct an audit of the books and records of any licensed motor vehicle or snowmobile dealer failing or refusing to produce the records. All books, records, and memoranda which relate to the sale of a motor vehicle or snowmobile shall be retained by the seller for five years.
Source: SL 1985, ch 241, § 11; SL 1987, ch 223, § 11; SL 1997, ch 182, § 2; SL 2004, ch 17, § 84; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
32-5B-17. Disposition of revenue.
All revenues received pursuant to §§ 32-5B-1 and 32-5B-20 shall be credited to the state highway fund.
Source: SL 1985, ch 241, § 9; SL 1994, ch 245, § 6.
32-5B-18. "Siblings" defined.
For the purposes of this chapter, "siblings" include any individuals who are brother and sister by blood, marriage, or adoption.
Source: SL 1986, ch 242, § 22.
32-5B-19. Rental vehicle and leased vehicle defined.
Terms used in this chapter mean:
(1) "Leased vehicle," a motor vehicle which is titled in the name of a leasing company or the individual who is leasing the motor vehicle which is leased for a period of more than twenty-eight days;
(2) "Rental vehicle," a motor vehicle which is titled in the name of a rental company licensed under chapter 10-45 which is rented for twenty-eight days or less; or a trailer which is titled in the name of a rental company licensed under chapter 10-45 and that has an unladen weight of nine thousand pounds or more, that is rented for six months or less, and that is not consecutively rented to the same person for more than one six-month period.
Source: SL 1994, ch 245, § 1; SL 1997, ch 181, § 1; SL 2000, ch 146, § 1.
32-5B-20. Gross receipts tax on vehicle rental--Violation as misdemeanor.
There is hereby imposed a tax of four and two-tenths percent upon the gross receipts of any person renting a rental vehicle as defined in § 32-5B-19. This tax applies to all vehicles registered in accordance with § 32-5-6, 32-5-8.1, or 32-5-9. Any rental vehicle not licensed in accordance with § 32-5-6, 32-5-8.1, or 32-5-9 is subject to the motor vehicle excise tax in § 32-5B-1.
The tax imposed by this section is in addition to any tax levied pursuant to chapter 10-45 or 10-46 upon the rental of a rental vehicle. The provisions of chapter 10-45 apply to the administration and enforcement of the tax imposed by this section. The tax imposed by this section is in lieu of the tax levied by § 32-5B-1 on the sales of such motor vehicles. A violation of this section is a Class 1 misdemeanor.
Source: SL 1994, ch 245, § 5; SL 1995, ch 175, § 2; SL 1997, ch 181, § 2; SL 2015, ch 162, § 1; SL 2023, ch 32, § 17.
Effective July 1, 2027
32-5B-20. Gross receipts tax on vehicle rental--Violation as misdemeanor.
There is hereby imposed a tax of four and one-half percent upon the gross receipts of any person renting a rental vehicle as defined in § 32-5B-19. This tax applies to all vehicles registered in accordance with § 32-5-6, 32-5-8.1, or 32-5-9. Any rental vehicle not licensed in accordance with § 32-5-6, 32-5-8.1, or 32-5-9 is subject to the motor vehicle excise tax in § 32-5B-1.
The tax imposed by this section is in addition to any tax levied pursuant to chapter 10-45 or 10-46 upon the rental of a rental vehicle. The provisions of chapter 10-45 apply to the administration and enforcement of the tax imposed by this section. The tax imposed by this section is in lieu of the tax levied by § 32-5B-1 on the sales of such motor vehicles. A violation of this section is a Class 1 misdemeanor.
Source: SL 1994, ch 245, § 5; SL 1995, ch 175, § 2; SL 1997, ch 181, § 2; SL 2015, ch 162, § 1; SL 2023, ch 32, §§ 17, 19.
32-5B-21. Applicability of tax on leased vehicles--Leasing information required.
The tax imposed by §§ 32-5B-1, 32-5B-1.1, 32-5B-4(7), and 32-5B-21 to 32-5B-24, inclusive, and calculated in the manner set out in § 32-5B-4 on the sale or use of leased vehicles subject to titling and registration applies to vehicles with a gross vehicle weight ratings of less than sixteen thousand pounds or vehicles defined in subdivision 32-9-3(3), including motorcycles and motorized bicycles. No certificate of title may be issued until the tax is paid.
The county treasurer shall require every applicant for registration of a vehicle subject to tax under §§ 32-5B-1, 32-5B-1.1, 32-5B-4(7), and 32-5B-21 to 32-5B-24, inclusive, to supply information as is deemed necessary as to the date of the lease transaction, the lease price, and other information relative to the lease of the vehicle.
Source: SL 2000, ch 145, § 4; SL 2001, ch 167, § 1; SL 2006, ch 161, § 1.
32-5B-22. No tax refund for early termination of lease.
If the lease is terminated prior to the termination date contained in the lease agreement, no refund may be allowed for tax previously paid under §§ 32-5B-1, 32-5B-1.1, 32-5B-4(7), and 32-5B-21 to 32-5B-24, inclusive.
Source: SL 2000, ch 145, § 5.
32-5B-23. Tax on vehicles leased in another state--Credit for tax paid to another state.
Vehicles entering this state under a lease are subject to tax on the date the vehicle enters this state for the remaining lease period. A credit for tax paid on the lease for the lease period at issue where the incidence of the tax was on the lessor, lessee, or both, and the tax was paid by the lessor, lessee, or both, to another state shall be applied to the motor vehicle lease tax due on the lease from the lessor in this state, if the lessor and the lessee remain the same.
Source: SL 2000, ch 145, § 6.
32-5B-24. Tax credit for total loss of leased vehicle.
If the motor vehicle lease tax has been paid on a qualifying lease under §§ 32-5B-1, 32-5B-1.1, 32-5B-4(7), and 32-5B-21 to 32-5B-24, inclusive, and prior to the expiration of the lease, the vehicle subject to the lease is destroyed by means such as fire, accident, or vandalism, to the extent that it constitutes a total loss of the vehicle, a credit for motor vehicle lease tax paid for the period remaining on the previous lease shall be allowed if another vehicle is substituted under the original lease or a new lease is executed with the intent to replace the vehicle subject to the previous lease. To initially qualify for the credit there must be a total loss of the vehicle subject to the previous lease, a new lease must be executed or a vehicle must be substituted under the original lease. To qualify for the credit, the new lease or substituted vehicle under the original lease shall be executed by the same lessor and lessee, for lease of a vehicle of the same or similar make, model, year, and options as the vehicle subject to the previous lease, for the remaining lease period of the previous lease, and for the same lease price. The lease shall contain the same lease terms as the previous lease.
Source: SL 2000, ch 145, § 7.
