Free South Dakota Gift Bill of Sale
Gifting a vehicle in South Dakota without consideration to a spouse, between a parent and child, or between siblings exempts the transfer from the state's 4% excise tax, which on a $25,000 vehicle would otherwise cost $1,000. File Form 1001 (the title and registration application) and document the family relationship as your county treasurer directs. You have a 45-day window to complete the title transfer at your county treasurer's office.
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South Dakota Gift Bill of Sale — What You Need to Know
Inspection Requirements
South Dakota has no statewide safety or emissions inspection requirement.
South Dakota Gift Sale — Step-by-Step Checklist
- Obtain Form 1001 (Application for Motor Vehicle Title & Registration) from the SD DOR or county treasurer
- Complete the application and document the gift and the family relationship as the county treasurer directs
- Donor signs the title over to the recipient on the back of the existing title
- Recipient brings the signed title, completed Form 1001, and proof of insurance to the county treasurer
- Pay applicable title and registration fees (excise tax is waived for qualifying family gifts)
- Complete the transfer within the 45-day deadline to avoid late penalties
- Recipient obtains new South Dakota title in their name
Common Pitfalls
- Failing to document the gift and the family relationship — without a qualifying exemption the 4% excise tax applies
- Missing the 45-day title transfer window, which results in late fees and complications
- Gifting to a relative outside the list (grandparent, grandchild, aunt, uncle, cousin) — those transfers do not qualify for the family 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 narrow — no consideration, and only spouses, parent and child, or siblings. Complete Form 1001, visit the county treasurer within 45 days, and keep a copy of the completed form for your records.