Off-Road Vehicle Dealers in South Dakota Need Bond

off-road vehicle dealers

Motorcycle and off-road vehicle dealers in South Dakota will now be required to obtain a license and a surety bond to legally conduct business. House Bill 1083 was passed on March 7, 2016 and also mandates that off-road vehicle purchases incur an excise tax of 4%, the same as the state’s motor vehicle excise tax. Previously, off-road vehicles were not included in the legislative definitions of “vehicle” and did not need to be sold by a licensed dealer.

Motorcycle and off-road dealers will need to post a $5,000 surety bond ensuring their adherence to Title 32 of the South Dakota Codified Laws. The bond should run concurrently with the license and a new bond or a valid continuation must be submitted each licensing period. When initially applying for a license, motorcycle and off-road vehicle dealers must pay a licensing fee of $250. The annual renewal fee is $150 unless the applicant misses the deadline, in which case they must pay the original $250 fee.

Contact the South Dakota Department of Motor Vehicles if you have questions about the new regulations. The experts at can answer your questions about getting a surety bond in South Dakota.

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About the Author

Melanie Baravik
Melanie is a senior at the University of Missouri - Columbia studying English with an emphasis in creative writing. She is a member of the marketing department and outreach team for, a leading provider of online bonding for clients nationwide.