South Dakota has a multi-layered tax system for precious metals, specifically gold.

Severance Tax in South Dakota

• A flat tax of $4 per ounce of gold severed.
• An additional 10% tax on the net profits of operations extracting both gold and silver.
• An additional tax per ounce of gold severed, which varies based on the average price of gold.

The state sales tax rate in South Dakota is currently 4.2%. This is a temporary reduction from the usual rate of 4.5%, effective from July 1, 2023, to June 30, 2024. In addition to the state sales tax, local municipalities may impose additional sales taxes of up to 2%. There is also a municipal gross receipts tax of 1% that may be applied to certain goods and services. Therefore, the combined sales tax rate you'll pay in South Dakota can vary depending on the specific location and the types of goods or services you're purchasing. It could range from 4.2% to 7.2%. While South Dakota has a state sales tax and potentially additional municipal taxes, there is a complete exemption for purchases of coins, bullion, and currency based on gold, silver, and other precious metals.