Free South Dakota Vehicle Bill of Sale
A South Dakota vehicle bill of sale documents the private sale of a car, truck, motorcycle, or trailer and gives the county treasurer the price needed to calculate the 4% Motor Vehicle Excise Tax. State law requires a bill of sale approved and supplied by the Department of Revenue — Form 1025 — and if none is submitted, the excise is assessed on dealer-guide retail value instead of your price. The DOR manual also mentions a purchase order or sales contract, so check with your county treasurer before relying on a different document. SD has no state income tax, so vehicle excise tax is a serious revenue stream — write the real number. The state gives you 45 days to get to the county treasurer; after that the late fees start.
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South Dakota Vehicle Bill of Sale — What You Need to Know
Sales Tax Details
South Dakota charges a 4% Motor Vehicle Excise Tax (MVET) on the purchase price — this is NOT the general state sales tax (which is 4.2% on most goods). MVET is a dedicated vehicle tax collected by the county treasurer at the time of titling, and it goes straight into the state highway fund. South Dakota has no state income tax, so vehicle excise is a major revenue stream and the state takes underreported purchase prices seriously. The tax is on the total price paid, and if no bill of sale is submitted, the excise is assessed on retail value from a nationally recognized dealers' guide.
Exemption: The family exemption covers only vehicles transferred without consideration between spouses, between a parent and child, and between siblings — a paid sale between relatives is taxable. A vehicle 11 or more model years old sold for $2,500 or less (before trade-in) has its own exemption. Ask your county treasurer how to document an exempt transfer.
Inspection Requirements
South Dakota does not require any state safety inspection or emissions test for passenger vehicles — there is no annual sticker, no smog check, no VIN verification at a state station. The county treasurer will check the VIN on the title against the application but will not physically inspect the vehicle in most cases. The exception is rebuilt vehicles, which must pass a Department of Revenue inspection before a rebuilt title is issued. Out-of-state vehicles being titled in SD for the first time may need a VIN verification, but it can be done by any law enforcement officer or licensed dealer.
Registration
Registration for this vehicle type is handled by County treasurer's office (on behalf of SD DOR MVD) — not the same agency that handles cars in South Dakota. Plan for separate filings.
South Dakota Vehicle Sale — Step-by-Step Checklist
- Buyer and seller full legal names and South Dakota addresses (or out-of-state address for buyer)
- Date of sale — starts the 45-day clock to title and register at the county treasurer
- Vehicle year, make, model, body style, and color
- Complete 17-character VIN (verify against the door jamb sticker, not just the title)
- Odometer reading at time of sale — required disclosure for vehicles of model year 2011 or newer
- Purchase price in U.S. dollars (this is what the 4% MVET is calculated on)
- Any known wreck or salvage history, written out (South Dakota repealed its separate damage-disclosure law in 2015, but honest disclosure protects you)
- "As-is" language unless a written warranty is being given (private sales are not covered by lemon law)
- Seller signature on Form 1025, dated the day of the sale; no notary block appears on the form
Common Pitfalls
- Writing $1 or "gift" when money actually changed hands. The 4% MVET is owed on the total price paid, and the family exemption covers only no-consideration transfers between spouses, parent and child, and siblings — don't fake a low price.
- Missing the 45-day titling deadline. South Dakota charges interest on unpaid MVET, a one-time 10% (or $10) penalty after 60 days, and a $1/week late fee (a flat $50 at 26 weeks or more). Out-of-state buyers who drag their feet on getting back to a county treasurer hit this constantly.
- Hiding past wreck damage. South Dakota repealed its damage-disclosure statute in 2015, so there is no separate form to file — but if the car was ever in a major wreck, say so in writing; concealing it can still lead to a fraud claim.
- Going to a "DMV office" that doesn't exist. South Dakota processes everything through county treasurers — there's one in each of the 66 counties. Find yours before you drive 40 miles to a town that doesn't handle titles.
- Leaving plates on the vehicle. South Dakota plates stay with the seller, not the car. The seller must give the buyer a free 45-day seller's permit (printed at mysdcars.sd.gov or a county treasurer kiosk) so the buyer can drive it until it is registered — skipping it is a Class 2 misdemeanor.
Pro Tip
Print two copies, sign both, hand one to the buyer. The buyer takes the title, the Form 1025 bill of sale, and Form 1001 to their county treasurer within 45 days, pays the 4% MVET, and walks out with a new title and plates. South Dakota keeps the process simple — no inspection, no DMV bureaucracy, no income tax — but the 45-day deadline and the family exemption rules are where people stumble.