Overview: Are STRs allowed in Brookings, SD?

• Explicitly: Yes, short‑term rentals are allowed in Brookings, SD. The City’s current framework treats STRs as “rental dwellings” subject to the City’s rental inspection and licensing program, not as a separately permitted STR use.
• Regulatory posture: South Dakota takes a hands‑off approach at the state level, delegating STR oversight to cities and counties. As of the sources provided, Brookings has not published city‑specific STR rules beyond its general rental dwelling licensing and inspections. Several nearby communities (e.g., Hill City, Deadwood, Lead) have adopted or are considering more restrictive STR ordinances, but those do not apply to Brookings.
• Investor takeaway: You can operate an STR in Brookings as a rental dwelling so long as you (1) meet state licensing/tax obligations, (2) secure any required city rental permit(s) for your property type, and (3) comply with zoning, building, and life‑safety standards. Prepare for city regulatory evolution; at least one non‑city source forecasts Brookings may formalize additional STR rules (e.g., zoning designations, updated fees, digital monitoring) by 2026, but this is not yet reflected on the City’s site. Sources: City of Brookings – Rental Dwellings; SD state‑level STR guide.

How to start a short-term rental business in Brookings

1. Confirm zoning eligibility

• Contact the City’s Community Development/Building Services to confirm short‑term rentals are a permitted use in the subject property’s zone and that there are no CUP or other conditions that would preclude STR operations.

2. Obtain state-level licenses

• South Dakota Sales Tax License (Department of Revenue): required to collect/remit state sales and tourism taxes on rentals under 28 consecutive days.
• South Dakota Lodging License (Department of Health): required to ensure lodging properties meet basic health and safety standards.
• These licenses are typically prerequisites for any local permits or inspections. Source: South Dakota STR legal overview.

3. Secure city rental licensing

• Use the City’s rental dwelling licensing process (via SmartGov) for new permits and renewals. This is the City’s documented route for inspecting and licensing rental properties, including short‑term rentals. Source: City of Brookings – Rental Dwellings.

4. Complete inspections and any corrections

• Inspections verify safe occupancy conditions. Correct any violations identified by Building Services. Keep inspection records on hand for renewal/audit purposes.

5. Register for taxes

• Register with the South Dakota Department of Revenue (DOR) to collect/remit:
  • State sales and use tax: 4.5%
  • Tourism tax: 1.5%
  • Municipal taxes: verify the current rate with the City/County.
• Even if a platform collects some taxes for you, you remain responsible for full compliance. Source: SD STR tax section.

6. Put safety and operations in place

• Install/maintain working smoke detectors, CO alarms, fire extinguishers, clear emergency egress, and ensure compliance with building codes and sanitation. Source: SD STR legal overview.

7. Maintain accurate records

• Keep copies of state licenses, city permits/inspections, insurance, guest logs, income/tax filings, and communications with the City/County for at least the applicable retention period (commonly 3+ years).

Required documents, permits, licenses, and guidelines State (South Dakota)

• Sales Tax License (DOR): essential for collecting/remitting state and local lodging taxes.
• Lodging License (DOH/Health): demonstrates compliance with health and safety standards for lodging.

City/County (Brookings)

• Rental Housing Permit (City): document your property through the City’s SmartGov portal.
  • New permit application and renewal applications are available via the City’s SmartGov platform.
  • Permit validity: up to four years (per City’s rental dwellings guidance).
• Inspection(s): conducted by Building Services for safety; frequency/requirements per City code.
• Zoning verification: confirm STR use is allowed at the property location.
• Safety documentation: maintain inspection records, insurance (as applicable), and proof of state licenses.

Safety and operational guidelines (typical expectations)

• Working smoke detectors on each level and in sleeping areas.
• Carbon monoxide alarms where applicable.
• Fire extinguisher(s) and posted emergency exit plan.
• Electrical, plumbing, and structural systems in code‑compliant condition.
• Adequate sanitation, pest control, and occupancy consistent with building and fire codes. Sources: SD STR overview; City of Brookings – Rental Dwellings.

Specific regulations: Brookings vs. county vs. state

• City of Brookings
  • Current status: No separate “short‑term rental permit” category is published on the City site; STRs are treated as rental dwellings subject to inspection and licensing.
  • License validity: up to four years.
  • Enforcement: City’s Building Services handles inspections/licensing and investigates occupancy/safety concerns.
• Brookings County
  • No county‑specific STR rules are provided in the sources; verify with the County for any overlay or health/land use requirements.
• State of South Dakota
  • Minimal statewide operational restrictions. Requirements focus on taxation and basic lodging standards:
    • Taxes for rentals < 28 days: 4.5% sales/use tax + 1.5% tourism tax; municipal taxes apply at local rates.
    • Licensing: state sales tax and lodging licenses are required.
    • Local control: municipalities have broad authority to add requirements, so rules can change. Sources: SD STR overview.
• Notable trend to monitor
  • Nearby communities (e.g., Hill City, Deadwood, Lead) have adopted or are adopting stricter STR ordinances (e.g., caps, buffers, residential bans), indicating a regional tightening of STR oversight. Brookings has not posted similar rules yet; investors should monitor City communications. Sources: Brookings Register; Dakota News Now.

Contact information and relevant links City of Brookings – Building Services / Rental Dwellings

• Website: Rental Dwellings page and SmartGov portal
• Phone: 605‑692‑6281
• Address: City of Brookings, 520 3rd Street, Suite 230, Brookings, SD 57006
• SmartGov resources and permit links:
  • Rental Housing Permit Application – New: www.cityofbrookings-sd.gov/647/Engage-Brookings---Ask-a-QuestionReport-
  • Rental Housing Permit Application – Renewals: ci-brookings-sd.smartgovcommunity.com/Public/Home?_conv=1
  • SmartGov Resource Center: www.cityofbrookings-sd.gov/639/SmartGov-Resource-Center
• Municipal Code: library.municode.com/index.aspx?clientId=10484&stateId=41&stateName=South%20Dakota
• Contact for rental dwelling licensing questions:
  • Sarah Keizer, Housing Inspector – Rental
  • Email: skeizer@cityofbrookings-sd.gov

South Dakota Department of Revenue (Sales Tax)

• Registration for sales and tourism taxes; filing and compliance resources. (See state guide above.)
• Source: SD STR overview.

South Dakota Department of Health (Lodging License)

• Lodging safety standards; licensing. (See state guide above.)
• Source: SD STR overview.

City of Brookings (main site)

• www.brookingssd.gov/

Additional references for context and monitoring

• Brookings Register coverage of Black Hills housing/STR issues: brookingsregister.com/stories/short-term-rentals-highlight-balancing-act-of-black-hills-housing,126752
• Dakota News Now overview of South Dakota STR regulation challenges: www.dakotanewsnow.com/2024/03/10/short-term-rental-regulation-still-puzzle-south-dakota/
• Brookings STR guide (non‑official; forecast of potential 2026 changes): www.jakenfinancegroup.com/brookings-short-term-rental-laws-2026-a-complete-guide
• General SD STR law overview (licensing, taxes, municipal variations): www.checkmaterentals.com/blog/south-dakota-short-term-rental-laws

Important notes and caveats

• The City’s published guidance applies broadly to rental dwellings; confirm with Building Services whether your intended STR operation is eligible under this licensing route or if additional City permits apply.
• Municipal tax rates (in addition to the state 4.5% + 1.5%) vary by locality and should be verified directly with the City/County.
• Enforcement occurs via inspections and complaint investigation; operating without required licenses can result in penalties or suspension of operations.
• Rules can change. Given the documented evolution of STR policy across South Dakota communities, monitor the City’s website, SmartGov portal, and Council agendas for new ordinances or fee updates.