Deadwood Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental License

This permit type does not require primary residence.

Application Process

CUP application reviewed by Planning & Zoning Commission with public notice (posted sign, published newspaper notice, 10-day hearing notice); a CUP fee is set by City Commission resolution (amount available from the Planning and Zoning Office, not published online); approved CUPs additionally require proof of SD State Excise Tax registration, SD Dept. of Health Lodging License, BID tax enrollment, City Business License, and Short-Term Rental License, plus commercial water/refuse accounts; reviewed annually thereafter.

Tax Obligations

Combined rate: 8.7% + $2/night of gross rental income.

Collection: BID #8 occupancy tax self-reported on a monthly remittance form and paid directly to the City of Deadwood Finance Office

Filing: Monthly

Rental Limits

Deadwood does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

• Vacation-home and residential short-term rentals are PROHIBITED in Deadwood's R1 and R2 residential zoning districts;
• Deadwood Municipal Code Ch. 17.53 generally prohibits transient commercial (short-term) use of residential property for remuneration citywide, with only a narrow exception for rentals of 14 days or less during a window surrounding the annual Sturgis Motorcycle Rally each August.
• Outside that exception, legal short-term rental operation is permitted only via a Conditional Use Permit (CUP) in commercial zones, under one of three defined categories: Bed and Breakfast Establishment (allowed in Residential, Commercial, and Commercial Highway zones), Specialty Resort Establishment (Commercial and Commercial Highway zones only), or Vacation Home Establishment (Commercial and Commercial Highway zones only; strictly prohibited in R1 and R2 residential zoning districts, per Ordinance 1424 amending Sec. 17.32.030).
• Within Deadwood's local historic district, Vacation Home Establishments must operate solely from the upper floor(s) of commercial structures.
• CUPs are reviewed annually by the Planning and Zoning Commission/Board and can be revoked by the Board of Adjustment for cause, including on complaint by any three residents within 300 feet of the property.

Insurance & Safety

Insurance

Deadwood does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Penalties for Non-Compliance

No fixed monetary fine schedule is published in Deadwood's sources; enforcement is primarily via revocation of the Conditional Use Permit by the Board of Adjustment for cause after a hearing, which may be initiated by the Planning and Zoning Commission or by any three residents within 300 feet of the property. Operating a residential short-term rental in violation of Ch. 17.53 (outside the narrow Sturgis-week exception) is a prohibited use subject to municipal enforcement.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Deadwood:

1. Apply for Short-Term Rental License. Submit application. Contact city for fee details.
2. Register for tax accounts. Set up lodging tax accounts with South Dakota Department of Revenue. Register separately with the local city and/or county for their lodging taxes (self-administered — not collected by the state).
3. Collect and remit taxes. 8.7% + $2/night on all bookings.
4. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Deadwood?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Deadwood requires a Short-Term Rental License.

Does Deadwood require a short-term rental to be your primary residence?

No. Deadwood allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Deadwood?

Deadwood does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Deadwood?

Short-term rental stays in Deadwood are subject to a combined 8.7% + $2/night in lodging taxes. This combines 4.2% South Dakota State Sales and Use Tax + 2% Deadwood Municipal Sales Tax + 1% Deadwood Municipal Gross Receipts Tax (MGRT, lodging) + 1.5% South Dakota Tourism Tax + $2 per room per night Deadwood BID #8 Business Improvement District Occupancy Tax. The host is responsible for collecting and remitting them.