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Hill City

South Dakota · United States
Restricted
Last updated: 2026-07-29  ·  Last verified: 2026-07-29  ·  Region: US

At a Glance — Hill City Airbnb & STR Rules

RuleDetails
Regulatory StatusRestricted — rules apply
Permit / License RequiredYes — state-level South Dakota Department of Health Lodging License and SD Department of Revenue Sales Tax License required; local permit/registration
Tax RateSouth Dakota state sales tax applies (verify current rate with SD Dept. of Revenue); local lodging/tourism tax rate for Hill City not confirmed in ava
Night / Day CapNone specified at city level beyond zoning prohibition — note: rentals of more than 28 consecutive days are not subject to the STR ordinance; all prop
Minimum StayNo confirmed minimum stay beyond the >28-day carve-out (rentals over 28 days are considered long-term and exempt from the STR ordinance)
Permit FeeUnknown — specific local permit fee not confirmed in available official sources; state lodging license and sales tax license fees apply
PenaltiesViolations of local zoning ordinance subject to municipal enforcement; specific fine schedule not confirmed in available official sources
Primary Residence RequiredPartial — new STRs in residential zones are banned outright; owner-occupancy (hosting from within the home) or bed-and-breakfast operations are among
Occupancy LimitUnknown — not confirmed in available official sources
Browse all 5 STR regulations in South Dakota → Browse all 535 STR regulations in United States →

Hill City Airbnb & Vacation Rental Regulation Overview

Hill City Short-Term Rental Regulations Overview

Short-term rentals in Hill City, 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 — state-level South Dakota Department of Health Lodging License and SD Department of Revenue Sales Tax License required; local permit/registration required for any permissible STR. The associated permit fees are Unknown — specific local permit fee not confirmed in available official sources; state lodging licen.

Tax Requirements for Airbnb Hosts in Hill City

Short-term rental operators in Hill City should be aware of these tax obligations: South Dakota state sales tax applies (verify current rate with SD Dept. of Revenue); local lodging/tourism tax rate for Hill City not confirmed in available official sources. Yes — state sales tax license with SD Department of Revenue; state sales tax, tourism tax, and any applicable local taxes must be collected and remitt.

Hosting Rules and Restrictions in Hill City

Key operational rules for vacation rental hosts in Hill City include: Primary residence requirement: Partial — new STRs in residential zones are banned outright; owner-occupancy (hosting from within the home) or bed-and-b. Rental day cap: None specified at city level beyond zoning prohibition — note: rentals of more than 28 consecutive days are not subject . Occupancy limit: Unknown — not confirmed in available official sources. Minimum stay: No confirmed minimum stay beyond the >28-day carve-out (rentals over 28 days are considered long-term and exempt from th.

Zoning and Location Requirements in Hill City

Zoning considerations for short-term rentals in Hill City: New short-term rentals are BANNED in all residentially zoned areas (passed by citizen ballot initiative, June 2022). STRs are permitted in commercial/non-residential zones. Grandfathered existing STRs. Density rules: Effectively zero new STR density permitted in residential zones; no new residential STR licenses are issued. Insurance: Unknown — not confirmed in available official sources.

Penalties for Non-Compliance in Hill City

Hosts who fail to comply with Hill City's short-term rental regulations may face enforcement action. Violations of local zoning ordinance subject to municipal enforcement; specific fine schedule not confirmed in available official sources.

Platform Obligations in Hill City

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Hill City: Unknown — not confirmed in available official sources.

Full Regulatory Details

Regulatory Status
Restricted
License / Registration
Yes — state-level South Dakota Department of Health Lodging License and SD Department of Revenue Sales Tax License required; local permit/registration required for any permissible STR
Tax Registration
Yes — state sales tax license with SD Department of Revenue; state sales tax, tourism tax, and any applicable local taxes must be collected and remitted
Permit Fee
Unknown — specific local permit fee not confirmed in available official sources; state lodging license and sales tax license fees apply
Primary Residence Rule
Partial — new STRs in residential zones are banned outright; owner-occupancy (hosting from within the home) or bed-and-breakfast operations are among the limited exceptions permitted in residential zones for pre-existing/grandfathered situations
Night / Day Cap
None specified at city level beyond zoning prohibition — note: rentals of more than 28 consecutive days are not subject to the STR ordinance; all properties may operate as STRs during the annual Sturgis Motorcycle Rally per South Dakota state law
Occupancy Limit
Unknown — not confirmed in available official sources
Tax Rate
South Dakota state sales tax applies (verify current rate with SD Dept. of Revenue); local lodging/tourism tax rate for Hill City not confirmed in available official sources
Zoning Restrictions
New short-term rentals are BANNED in all residentially zoned areas (passed by citizen ballot initiative, June 2022). STRs are permitted in commercial/non-residential zones. Grandfathered existing STRs in residential areas may continue operating until the property is sold or changes ownership, at which point the STR use is extinguished.
Minimum Stay
No confirmed minimum stay beyond the >28-day carve-out (rentals over 28 days are considered long-term and exempt from the STR ordinance)
Density Rules
Effectively zero new STR density permitted in residential zones; no new residential STR licenses are issued
Insurance Required
Unknown — not confirmed in available official sources
Platform Obligations
Unknown — not confirmed in available official sources
Compliance Notes
Citizen ballot initiative passed June 2022 — no new STRs in any residential zone. Existing residential STRs are grandfathered only until change of ownership. Owner-occupied STRs (host lives on-site) and B&B operations are explicitly exempted from the ban. South Dakota state law carves out a Sturgis Rally exception statewide.
Effective Date
June 2022 (citizen ballot measure)
Key Notes
Hill City is effectively closed to new residential STR investment. The ban was citizen-initiated due to housing stock depletion — nearly 10% of housing units were operating as STRs in 2022. Existing non-residential (commercial zone) STRs remain permitted. State lodging license and sales tax registration are still required for any lawfully operating STR.
Penalties
Violations of local zoning ordinance subject to municipal enforcement; specific fine schedule not confirmed in available official sources
Additional Context
Hill City is a Black Hills tourism town with severe housing supply constraints. The SD legislature considered but did not pass HB 1149 (2024), which would have prohibited municipalities from banning STRs in residential zones. Local control therefore remains intact as of 2026-07-29.
Sources
City of Hill City — reported via Development Services Coordinator Dani Schade (City of Hill City official)
SD News Watch (primary reporting citing city officials): https://www.sdnewswatch.org/south-dakota-short-term-rentals-airbnb-vrbo-hill-city/
Hill City municipal code/ordinances: https://www.hillcitysd.gov (direct municipal code section for STR not located in public-facing search
verify at City Hall or Planning Dept.)
SD Dept. of Revenue sales tax: https://dor.sd.gov
SD Dept. of Health lodging license: https://doh.sd.gov
📋 Apply / Register with the Official Authority

Apply for your STR permit or registration directly through the official government portal.

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Frequently Asked Questions

Is Airbnb legal in Hill City?

Airbnb and short-term rentals are legal in Hill City but subject to restrictions. Hosts must comply with local permit requirements and zoning rules. Citizen ballot initiative passed June 2022 — no new STRs in any residential zone. Existing residential STRs are grandfathered only until change of ownership. Owner-occupied STRs (host lives on-site) a

Do you need a permit for Airbnb in Hill City?

Yes. Hill City requires the following for short-term rental operation: Yes — state-level South Dakota Department of Health Lodging License and SD Department of Revenue Sales Tax License required; local permit/registration required for any permissible STR.

What taxes apply to short-term rentals in Hill City?

Short-term rental hosts in Hill City are subject to the following tax obligations: South Dakota state sales tax applies (verify current rate with SD Dept. of Revenue); local lodging/tourism tax rate for Hill City not confirmed in available official sources.

What are the penalties for illegal Airbnb hosting in Hill City?

Hosts who operate without proper permits in Hill City may face enforcement. Violations of local zoning ordinance subject to municipal enforcement; specific fine schedule not confirmed in available official sources.

What are the key STR compliance requirements in Hill City?

Hill City is effectively closed to new residential STR investment. The ban was citizen-initiated due to housing stock depletion — nearly 10% of housing units were operating as STRs in 2022. Existing non-residential (commercial zone) STRs remain permitted. State lodging license and sales tax registration are still required for any lawfully operating STR.

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