South Dakota uses a bill of sale to document a private vehicle transaction, but the properly assigned certificate of title remains the main ownership document. The buyer generally has 45 days from purchase to complete title and registration, and the seller must provide a 45-day seller’s permit so the buyer can legally operate the vehicle while the transfer is pending.

Private vehicle purchases are subject to a 4% South Dakota motor vehicle excise tax. A standard title costs $10, and late title and tax charges begin when the buyer misses the state’s filing deadlines.

Download the free KarKiosk vehicle bill of sale PDF before the vehicle changes hands. Record the VIN, sale price, mileage, payment details and handover date so both parties have a signed transaction record to keep with the South Dakota title.

The Title Transfers Ownership; the Bill of Sale Records the Deal

South Dakota provides vehicle-sale documentation, but a bill of sale is not a replacement for a properly assigned title.

The seller should give the buyer:

• Original certificate of title properly assigned.

• Bill of sale showing the actual transaction.

• Seller’s permit.

• Lien release when a lien appears on the title.

• Odometer information when disclosure applies.

The bill of sale should contain the buyer’s and seller’s full legal names, addresses, sale date, purchase price, vehicle year, make, model, VIN and mileage.

The buyer should compare every VIN before making payment.

South Dakota’s current title, registration and private-sale rules are available through the South Dakota Department of Revenue motor vehicle guidance.

South Dakota Private-Sale Rules at a Glance

The Seller Must Provide a 45-Day Seller’s Permit

South Dakota has a useful rule that is easy to miss.

A private seller must provide the new owner with a seller’s permit. It gives the buyer temporary legal authority to operate the vehicle while the title and registration transfer is being completed.

The permit:

• Is free.

• Is valid for 45 days.

• Can be printed through South Dakota’s online vehicle portal.

• Can also be obtained from a county treasurer.

• Applies to qualifying privately sold motor vehicles and off-road vehicles.

Failure to provide the permit can constitute a Class 2 misdemeanor under the state’s private-sale rules.

This makes South Dakota different from states where the buyer must independently obtain a temporary plate immediately after purchase.

For example, KarKiosk’s Nevada Bill of Sale guide explains Nevada’s shorter limited drive-away period and separate movement-permit system.

What If 45 Days Is Not Enough?

South Dakota also offers a short-term permit for qualifying situations.

A purchaser may obtain a 5- to 15-day temporary permit from a county treasurer when additional operating time is necessary.

The fee is:

• $1 per day.

• Minimum charge of $5.

The buyer must have one of these documents available:

• Title in the buyer’s name.

• Title properly assigned to the buyer.

• Bill of sale identifying the buyer as purchaser.

The document must be available for inspection by law enforcement while the vehicle is being moved.

The temporary permit does not restart the 45-day title deadline.

The Buyer Has 45 Days to Title and Register

South Dakota requires vehicle registration within 45 days of the purchase date.

There is no routine extension to this requirement.

Fees are assessed from the original purchase date even if the buyer waits before filing.

A buyer who files after the deadline can face several separate charges.

After 45 Days

The title late fee is $1 for each week beyond the 45-day period.

The late-title fee eventually reaches a maximum of $50.

Interest also begins on unpaid motor vehicle excise tax. For the first late month, current DOR guidance lists interest of 1% or $5, whichever is greater, followed by 1% per month thereafter.

After 60 Days

An additional one-time tax penalty applies when the application is made more than 60 days after purchase.

The penalty is the greater of:

• 10% of the tax due.

• $10.

This amount is added to the tax, interest, title fee and other applicable registration charges.

South Dakota Charges 4% Motor Vehicle Excise Tax

A privately purchased passenger vehicle is generally subject to 4% motor vehicle excise tax rather than ordinary retail sales tax.

Examples:

• $5,000 purchase → $200 tax.

• $10,000 purchase → $400 tax.

• $15,000 purchase → $600 tax.

• $20,000 purchase → $800 tax.

• $30,000 purchase → $1,200 tax.

The buyer should record the real transaction price.

A falsely reduced bill-of-sale price can create tax problems and weaken the buyer’s transaction record.

South Dakota’s current title, tax and registration charges are published through the Department of Revenue title and fee schedule.

Current Title and Related Charges

The standard title fee is $10.

Other common charges include:

• Lien notation: $10.

• Technology fee: $2.

• Duplicate title: $10.

• Solid waste fee: $1.

• Highway Patrol fee: $1.

• Registration mailing: $2.50 when applicable.

• Plate mailing: $12 when applicable.

• Electric vehicle annual fee: $100.

• County wheel tax: varies.

Registration itself depends on factors including vehicle weight, age and classification.

Do not quote a final out-the-door registration total based only on the $10 title fee.

Plates Stay With the South Dakota Seller

South Dakota is a plate-with-owner state.

The plates belong to the owner rather than automatically following the vehicle to the purchaser.

After the sale, the seller retains the existing plates.

When the seller purchases another qualifying vehicle, those plates can generally be transferred through the county treasurer after the new vehicle is titled in the seller’s name.

The buyer should use the seller’s permit while completing the buyer’s own title and registration process.

This is different from the rules discussed in KarKiosk’s Michigan Bill of Sale guide, where Michigan also removes the seller’s plate but uses a separate limited drive-home rule.

The Seller Can Report the Sale Online

South Dakota allows the seller to report a sold vehicle through the state’s online Vehicle Registration & Plates portal.

The same system can also be used to:

• Print a seller’s permit.

• Check registration information.

• Review vehicle records.

• Verify whether a lienholder appears on a vehicle record.

The state specifically provides an online VIN-check function that can show whether a lienholder is associated with the vehicle.

That is useful before a private transaction because a buyer should not assume a loan has been released merely because the seller says it has been paid.

Use the South Dakota Department of Revenue online vehicle services for these state functions.

Damage Disclosure Is No Longer a Standard Requirement

Older South Dakota guides can contain outdated information about mandatory damage disclosure.

South Dakota stopped requiring the general Damage Disclosure Statement effective July 1, 2015.

Damage information can still appear on older titles issued before that change.

The buyer should still inspect branded-title information carefully.

A salvage, rebuilt or otherwise branded title affects ownership records even though a separate statewide damage-disclosure form is no longer generally required.

Does South Dakota Require a Vehicle Inspection?

South Dakota’s standard private passenger-vehicle title and registration process does not include a routine statewide safety or emissions inspection.

That does not mean buyers should skip a mechanical inspection.

A pre-purchase inspection can identify:

• Frame damage.

• Brake wear.

• Tire problems.

• Fluid leaks.

• Cooling-system issues.

• Engine or transmission faults.

Special vehicle categories, assigned VIN cases, rebuilt vehicles and other nonstandard ownership situations can involve separate inspection or verification procedures.

Family Transfers Can Be Tax-Exempt

South Dakota exempts certain transfers made without consideration.

The 4% excise tax does not apply when a vehicle is transferred without payment:

• Between spouses.

• Between parent and child.

• Between siblings.

The $10 title transfer fee still applies.

Do not enter a fake sale price when no money changed hands.

Use the correct relationship and transaction information.

What If the Vehicle Has a Lien?

Check the lien before paying the seller.

When an active lien exists:

• Confirm the lender.

• Obtain the payoff amount.

• Determine how the title is being held.

• Pay the lender according to an agreed closing process.

• Obtain the lien release.

• Complete the title assignment only when clear ownership can be transferred.

A bill of sale does not remove a lender’s security interest.

How to Complete a South Dakota Private Vehicle Sale

• Verify the seller’s identity and title.

• Compare the VIN on the vehicle with the title.

• Check for an active lien.

• Complete the title assignment.

• Complete a detailed bill of sale.

• Record the odometer reading when applicable.

• Have the seller retain the existing plates.

• Have the seller provide the 45-day seller’s permit.

• Report the sale through the state system.

• Have the buyer title and register the vehicle within 45 days.

• Pay the 4% motor vehicle excise tax and applicable fees.

Common South Dakota Private-Sale Mistakes

• Treating the bill of sale as a replacement for the title.

• Allowing the buyer to use the seller’s plates.

• Forgetting the seller’s permit.

• Assuming the 45-day period can automatically be extended.

• Missing the 45-day tax and title deadline.

• Ignoring the additional penalty after 60 days.

• Paying a seller before checking an active lien.

• Using outdated information about mandatory damage disclosure.