Ethanol Excise Tax Rates

June 08, 2004


South Dakota's fuel excise tax rates are lower for ethanol blends, and E85 and M85. Motor fuel is taxed at $0.22 per gallon, while ethanol blends are taxed at 20 cents per gallon and E85 and M85 are taxed at 10 cents per gallon. The point of taxation for fuel tax is at the terminal rack. This means that whoever owns the fuel immediately before it is withdrawn from a rack in South Dakota must be licensed as a supplier. Suppliers have the major responsibility for collecting fuel tax and remitting it to the state. They charge tax on any fuel they sell, with these exceptions: untaxed (dyed) diesel fuel; fuel sold to a licensed exporter and destined for subsequent sale outside of South Dakota; unblended ethyl alcohol sold to a licensed blender or licensed supplier; and fuel sold to the U.S. government or defense fuel supply center.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: South Dakota
Incentive Type: Corporate Tax Exemption
Web Site:
Administrator: Department of Revenue
Start Date:
Eligible Renewable/Other Technologies:
Incentive Amount: $0.20/gallon for ethanol blends; $0.10/gallon for E85 and M85


Name: S.D. Codified Laws § 10-47B-4


Name: Public Information - Department of Revenue
Organization: Governor's Office of Economic Development
Address: 445 East Capitol Avenue
Pierre SD 57501-3100
Phone: (605) 773-3311

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.