| Rule | Details |
|---|---|
| Regulatory Status | Restricted — rules apply |
| Permit / License Required | Yes |
| Tax Rate | South Dakota state sales tax 4.5% + 1.5% municipal gross receipts tax + applicable local tourism taxes; SD Dept. of Revenue registration required |
| Permit Fee | State: SD Dept. of Revenue sales tax license (free to register); SD Dept. of Health lodging license required. Local city business license/permit fees: |
| Penalties | Not confirmed in available official sources; violations likely subject to city code enforcement and potential loss of any business license |
| Occupancy Limit | Not specified in available sources |
Short-term rentals in Custer, South Dakota are allowed but subject to significant restrictions under local regulations as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes. The associated permit fees are State: SD Dept. of Revenue sales tax license (free to register); SD Dept. of Health lodging license .
Short-term rental operators in Custer should be aware of these tax obligations: South Dakota state sales tax 4.5% + 1.5% municipal gross receipts tax + applicable local tourism taxes; SD Dept. of Revenue registration required.
Key operational rules for vacation rental hosts in Custer include: Occupancy limit: Not specified in available sources.
Zoning considerations for short-term rentals in Custer: New STRs are BANNED in areas zoned residential. Custer has passed an ordinance prohibiting new short-term rentals in residential zoning districts. Existing (grandfathered) STRs operating before the or. Density rules: Implicit density control via residential zone ban on new STRs.
Hosts who fail to comply with Custer's short-term rental regulations may face enforcement action. Not confirmed in available official sources; violations likely subject to city code enforcement and potential loss of any business license.
Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Custer: Not specified at city level; state sales tax and lodging tax obligations apply.
Apply for your STR permit or registration directly through the official government portal.
Official Source ↗Airbnb and short-term rentals are legal in Custer but subject to restrictions. Hosts must comply with local permit requirements and zoning rules. Custer has enacted an ordinance banning new short-term rentals in residentially zoned areas, similar to neighboring Deadwood and Hill City. Existing STRs may be grandfathered. All SD STR operators mus
Yes. Custer requires the following for short-term rental operation: Yes.
Short-term rental hosts in Custer are subject to the following tax obligations: South Dakota state sales tax 4.5% + 1.5% municipal gross receipts tax + applicable local tourism taxes; SD Dept. of Revenue registration required.
Hosts who operate without proper permits in Custer may face enforcement. Not confirmed in available official sources; violations likely subject to city code enforcement and potential loss of any business license.
Custer is located near Custer State Park, Mount Rushmore, and Crazy Horse Memorial — high-tourism area. The residential STR ban reflects a broader Black Hills region trend of communities prioritizing residential housing stock over STR expansion. SD HB 1149 (2024), which would have prohibited such local bans, failed to pass the state legislature. Operators must verify current ordinance status direc
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