Buying silver in Sioux Falls, SD
South Dakota does not charge sales tax on qualifying silver bullion and coins. Jewelry is taxed at the 4.2% state rate plus any local tax. The combined state and local sales tax rate in Sioux Falls is about 6.2%. South Dakota's 4.2% state rate is due to go back to 4.5% on 1 July 2027 unless lawmakers extend it.
Silver has one national spot price in US dollars: the prices on this page are the same as on the silver price in the United States page. What differs in Sioux Falls is tax, explained below and on the South Dakota page.
Sales tax on silver in Sioux Falls
Not on investment bullion. Coins, currency and bullion are exempt (SDCL 10-45-110). Bullion means gold, silver, platinum or palladium bars, ingots and commemorative medallions valued by content, and coins or currency qualify if they are or were legal tender. Jewelry is taxed like other goods at the 4.2% state rate plus any local tax. The combined state and local rate is about 6.2% here.
Full state rules: silver price and tax in South Dakota.
Tax when you sell silver in South Dakota
No state personal income tax, so no state tax on bullion gains. At the federal level, the IRS treats bullion and most silver coins as collectibles: long-term gains (assets held more than a year) are taxed at your ordinary rate, capped at 28%, and short-term gains as ordinary income.
Selling silver or silver jewelry to a dealer in South Dakota
- License: No statewide license for gold, silver or jewelry buyers was found. Cities license them by ordinance. Rapid City Municipal Code chapter 5.36 requires a license for pawnbrokers, secondhand dealers and gems and precious metals dealers, with license fees and term, a fixed place of business, record-keeping, holding periods, police hold orders, prohibited transactions and rules for transient trade shows (amended by Ordinance 6213 in 2018). As reported in 2013, licensees must also have a computer with internet access and subscribe to the LeadsOnline database unless the police chief approves another system. Sioux Falls adopted a precious metal dealer ordinance in 2011.
- Hold period: No state hold found. Rapid City: a 5-day hold on goods was reported when the ordinance was adopted in 2013, with goods sold with a valid bill of sale exempt from the hold; the 2018 amendment (Ordinance 6213) revised the holding period sections (5.36.090, 5.36.100), so the current number of days is not confirmed. Sioux Falls (2011, as reported on a collector forum): 14 calendar days from when records reach police, and police holds of up to 45 days.
- What the dealer records: Rapid City: record-keeping and electronic reporting through LeadsOnline (2013 report). Sioux Falls (2011, as reported on a collector forum): date, amount paid, seller's name and address, driver's license or other government ID number; copies to the police chief within 7 days; coins may be described by count of each denomination.
- Who is exempt: Rapid City (2013 report): bullion and numismatic coins are specifically exempt, and the rules give wide room to coin dealers, including those at coin shows in the city.
- The law: No statewide statute found. Local examples: Rapid City Municipal Code chapter 5.36 (Pawnbrokers, Secondhand Dealers, and Gems and Precious Metals Dealers), sections 5.36.010-5.36.150; a 2011 Sioux Falls ordinance.
Dealers report a customer's sale to the IRS on Form 1099-B only for certain forms and quantities, such as 1-kilo gold bars, 1,000 ounces of silver bars or 25 or more Krugerrands or Maple Leafs; American Eagles and smaller lots are generally not reported. Any business that receives more than $10,000 in cash in one transaction or related transactions files IRS Form 8300. Bring a photo ID when you sell.
Tax and duty information last reviewed October 2026. Rules change — confirm with your dealer or tax authority before a large purchase.