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Free South Dakota Gift Bill of Sale

Gifting a vehicle in South Dakota to an immediate family member — spouse, parent, child, sibling, grandparent, or grandchild — exempts the transfer from the state's 4% excise tax, which on a $25,000 vehicle would otherwise cost $1,000. Use Form MV-608, mark 'Gift,' and note the family relationship clearly. You have a 45-day window to complete the title transfer at your county treasurer's office.

South Dakota Requirements: Transfer title within 45 days. 4% sales tax.

Seller Information

Buyer Information

Gift Details

Sale Information

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Gifting a vehicle to a family member is a zero-dollar transfer, but the DMV still needs a bill of sale to process the title change. Our guide explains how the bill of sale and title work together and what recipients must show to claim the family-gift tax exemption. Read: Bill of Sale vs Title: What's the Difference?

South Dakota Gift Bill of Sale — What You Need to Know

Primary Form
MV-608
Bill of Sale / Title Application
Agency
South Dakota Division of Motor Vehicles, Department of Revenue
Primary ID Field
VIN
Sales Tax
0%
Title Required
Yes
Title must be transferred within 45 days of the gift date. Mark 'Gift' on Form MV-608 and note the family relationship.
Inspection
Not required

Inspection Requirements

South Dakota has no statewide safety or emissions inspection requirement.

South Dakota Gift Sale — Step-by-Step Checklist

  1. Obtain Form MV-608 (Bill of Sale / Title Application) from the SD DMV or county treasurer
  2. Complete the form marking the transaction as 'Gift' and state the family relationship
  3. Donor signs the title over to the recipient on the back of the existing title
  4. Recipient brings the signed title, completed MV-608, and proof of insurance to the county treasurer
  5. Pay applicable title and registration fees (excise tax is waived for qualifying family gifts)
  6. Complete the transfer within the 45-day deadline to avoid late penalties
  7. Recipient obtains new South Dakota title in their name

Common Pitfalls

  • Failing to mark 'Gift' on MV-608 and note the family relationship — the county will assess the 4% excise tax based on vehicle value
  • Missing the 45-day title transfer window, which results in late fees and complications
  • Gifting to a non-qualifying relative (aunt, uncle, cousin) — those transfers do not qualify for the excise tax exemption
  • Not signing both the front and back of the title correctly — an incomplete title assignment requires a bonded title process
  • Forgetting to notify your insurance company before the recipient drives the vehicle

Pro Tip

South Dakota's gift exemption is straightforward — complete MV-608, visit the county treasurer within 45 days, and keep a copy of the completed form for your records.

South Dakota Gift Bill of Sale — FAQs

Which family members qualify for the South Dakota gift vehicle excise tax exemption?
Spouse, parent, child, sibling, grandparent, and grandchild all qualify. Extended family such as aunts, uncles, and cousins do not qualify for the exemption.
Do I need a bill of sale if the vehicle is a gift in South Dakota?
Yes. Form MV-608 serves as both the bill of sale and title application. It must be completed even for $0 gift transfers and filed with your county treasurer.
What if the vehicle title has a lien on it?
The lien must be released by the lienholder before the title can be transferred as a gift. Contact the lender to obtain a lien release document first.
Is there a dollar limit on vehicle gifts that qualify for the tax exemption?
South Dakota does not impose a vehicle value cap on the immediate family gift exemption. Any vehicle gifted between qualifying family members is exempt from the 4% excise tax regardless of value.
Can I gift a vehicle to my adult child who lives out of state?
Yes, but the SD title transfer must still occur within 45 days. Your child will then need to register the vehicle in their state of residence using South Dakota's title as proof of ownership.