The Pennington County Treasurer’s Office is working to clear up confusion about how South Dakota calculates vehicle excise tax, especially in private vehicle sales. State law sets the excise tax at 4 percent of the purchase price, but if a reported sale price is far below market value, the state may instead use a standardized vehicle valuation.
Treasurer Annette Brant says the county is required to follow state guidelines and that the process is not new. Buyers can avoid a higher tax assessment if the seller documents legitimate reasons for a lower price, such as mechanical problems, using the state’s bill of sale form.
If the correct tax isn’t paid, the state can reject the title application and require the remaining balance, plus possible interest. Brant emphasized that excise tax revenue goes to the state, while counties only administer the law.
Lawmakers recently considered changing the system to base tax solely on sale price, but the proposal was delayed. Residents with concerns are encouraged to contact their local legislators.
