City Watch
Short-term rental rules in Keystone, SD
How Keystone regulates short-term rentals: the rules that apply, their sources, and pending changes.
Short-term rentals here are subject to registration, a lodging tax, or a small number of operating rules.
- City levies its own 1% municipal special sales tax on other lodging accommodations rented under 30 days (Code § 35.08)
- No STR-specific license, permit, or registration process in force (town issues only a general business license)
- No cap, primary-residence, or per-owner limit anywhere in the code
- No zoning chapter exists in the code (Title XV Land Usage has no zoning / no residential use table) — no residential-zone STR exclusion
Based on: Keystone, SD Code of Ordinances Ch. 35 (Taxation) — § 35.08 Special Sales Tax Rate (municipal 1% 'BBB' tax on other
Summary of the rule
§ 35.08: 'There is hereby imposed an additional tax in the amount of 1% upon sales or leases or rentals of hotel, motel, campsite or other lodging accommodations within the municipality for periods of less than 30 days; sales of alcoholic beverages... establishments where the public is invited to eat, dine or purchase and carry out prepared food... or ticket sales or admissions to places of amusement, athletic or cultural events...'. Municipal 'BBB' tax on 'other lodging accommodations ... less than 30 days' — no unit/room floor, reaches a whole-home STR. NOTE: § 35.06 (2% lodging tax) defines LODGING ESTABLISHMENTS as sleeping accommodations 'furnished in 2 or more rental units' — a 2-unit floor that would not clearly reach a single whole-home STR; the operative no-floor municipal device is § 35.08.
View the ordinance source ↗✓ Verified
Last reviewed Sep 17, 2026 · Sources · Report an error
Pending legislation
Monitoring Keystone · system last checked Oct 25, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.