South Dakota trade license reciprocity

How local licensing works. South Dakota has no state HVAC or mechanical licensing statute, so each city decides whether to license mechanical work under its building code ordinances. Outside the cities that do, no license is required beyond a building permit and federal EPA Section 608 certification for refrigerant work. Boilers are inspected and certificated by the State Fire Marshal's Office (Department of Public Safety), which does not license installers.

Sioux Falls. Chapter 150 of the city code licenses Mechanical Contractors, Refrigeration Contractors, Fireplace Contractors and Master Mechanics; there is no journeyman, installer or apprentice license for mechanical work (the city's journeyman and apprentice licenses are only for electrical and plumbing). Technicians work as employees of a licensed contractor whose master mechanic supervises the work. The city's FAQ states it does not reciprocate any licenses.

Rapid City. Chapter 15.26 of the municipal code creates the Mechanical Installer (MI) license for any person who installs, lays out, alters or repairs mechanical or HVAC systems, requiring four years of verifiable experience (an 18-24 month mechanical program counts as one year, a 9-12 month program as half a year) and approval by the Building Official; installers work under the direction of a licensed Mechanical Contractor, and Mechanical Apprentices (MA) work under the immediate supervision of an installer. Licenses are issued under chapter 15.04, which requires the city's examination, runs trade licenses for three years, and requires six hours of continuing education per license period for Mechanical Code licenses; exam and license fees are set by council resolution and are not published online. Nothing in the code recognizes an out-of-state installer or journeyman license.

Out-of-state holders. No South Dakota city page found publishes a reciprocity or endorsement path for an out-of-state HVAC journeyman license. In Sioux Falls there is nothing to transfer to; in Rapid City the installer applicant documents experience on the work record portion of the application and takes the city exam.

How local licensing works. South Dakota has no state HVAC licensing statute, so contractor and master-level credentials exist only under city ordinances. Boilers are inspected and certificated by the State Fire Marshal's Office (Department of Public Safety), which does not license installers or contractors.

Sioux Falls. The Mechanical Board of Appeals and Examiners tests Master Mechanics: four years of experience as a sheet metal mechanic, refrigeration technician, general manager, project manager or engineer employed by a licensed mechanical contractor, at least 2,000 hours per year, with up to one year of credit for trade school or engineering/construction management degrees and up to two years for military work. The exam ($75, non-refundable) is given the second Wednesday of each month, is open book on the 2021 IMC and IFGC (2024 codes to be adopted in 2026), and requires 75%; a first failure may be retaken after 30 days, later failures after 90 days. The Mechanical Contractor license must be applied for within 90 days of passing: $200 for a two-year license expiring December 31 of odd years ($100 if issued in the second year), a $10,000 compliance bond naming the City, current liability insurance, and the master mechanic must be an owner, partner or W-2 employee. The Refrigeration Contractor license uses a separate two-hour, 20-question IMC exam ($75, 75%) with the same bond and fee. An Inactive Master Mechanic license preserves the credential without contracting. The city states it does not reciprocate any licenses.

Rapid City. Under RCMC 15.26.080 a Mechanical Contractor (MC) license is held by a proprietorship, partnership, firm or corporation whose license holder has six years of verifiable experience (education credit of one year per 18-24 month program) and is qualified in planning, superintending and installing mechanical systems; if that person leaves, the firm has 30 days to qualify another. Under RCMC 15.04.140 the designated license holder must pass the city's exam, the firm must carry $1,000,000 aggregate and per-occurrence liability with $300,000 fire damage coverage, the license runs three years, and six hours of continuing education are required per period. License and exam fees are set by council resolution and were not found on a published page. The Building Official may accept another government agency's license only for Class A and B general building licenses.

Out-of-state holders. No reciprocity or endorsement path for out-of-state master or contractor licenses was found in either city. The practical route is to document experience, pass the local exam, and post the local bond and insurance in each city where work will be contracted.

How it works in South Dakota. There is no state contractor license, no state application and no state examination, so nothing carries automatically from one South Dakota city to the next, let alone from another state. What every contractor does need before starting work anywhere in the state is a contractor's excise tax license from the Department of Revenue: 'an individual must be licensed before starting work in South Dakota' and 'all contractors must be licensed regardless of the amount of the receipts they have or the amount of tax due.' There is no fee for it, the excise tax itself is 2% of a prime contractor's gross receipts, and three of the four cities below want to see a copy of the license card before they will issue a city license. Get that first, then take each city in turn.

Sioux Falls. Building Services 'requires a Residential Building Contractor's License of all contractors doing work on residential 1- & 2-family dwellings and townhomes within the city limits', and the examples it gives run from sheds, decks, shingles and sheetrock to basement finishing and new construction. The license is held through a named Construction Supervisor, who must first pass the Construction Supervisor Examination: a timed open-book test on the City of Sioux Falls Residential Code Handbook, offered monthly, 50 questions, 'You must get 80% or higher to pass the test, therefore a maximum of 10 of the 50 questions may be incorrect.' The examination fee is $75.00 and the handbook is $10.00. 'Upon application the Construction Supervisor must submit a $20,000 Compliance Bond, a minimum of $300,000 general liability insurance and the appropriate license fees within 90 days of examination.' Licenses run three years, one hour of continuing education is required in each cycle, and a license expired more than twelve months means sitting the examination again unless an inactive license was maintained. On out-of-state credentials the city is blunt: 'No, the city of Sioux Falls does not reciprocate any licenses. You will still need to take and pass examination before applying for the license.' The city does not print the license fee itself on the page, so ask licensing on 605-367-8672 what to send with the bond and the certificate. Sioux Falls also issues a separate Residential Roofing & Repair Contractor license and separate electrical, mechanical, plumbing, fireplace, refrigeration, irrigation, right-of-way and sign licenses.

Rapid City. Building Services licenses a Class B contractor 'for construction of detached single-family houses, attached single family houses and two-family dwellings', on a city-administered open-book examination based on the 2018 International Residential Code and the Rapid City amendments, 54 multiple choice questions in three hours, sat at City Hall. The license costs $200 initially and $100 to renew, runs three years and carries six hours of continuing education per period. Every applicant files a certificate of insurance naming the City of Rapid City as certificate holder and nothing else is accepted, with minimum general aggregate liability of $1,000,000, $300,000 fire damage and $1,000,000 each occurrence, plus a workers' compensation certificate or a signed statement of non-participation for an owner or partnership with no employees. A copy of the state excise tax certificate goes in the packet. Roofing is a separate Class R license, also $200 for three years, on a 12-question examination. A licensee who misses renewal has a one-year grace period, after which the license lapses and the examination must be taken again. Building Services is on (605) 394-4120.

Aberdeen. The city is explicit that location makes no difference to whether you need its license: 'Whether you are based in the City of Aberdeen itself, a different city within South Dakota, or you are based out of a completely different state all together, you must be licensed through the City of Aberdeen.' The examination is 50 questions, open book, two hours, with a passing score of 70%, studied from The Contractors Handbook at $15, and '$35 fee will be charged every time an exam is attempted or passed.' Aberdeen is the one place in the state that gives any weight to a license held elsewhere: 'the examination requirement may be waived if proof of prior licensing from recognized jurisdictions is approved by the City of Aberdeen's Building Official.' No jurisdiction is named on the handout, so bring the license and the licensing authority's own documentation and ask the Building Official first. After passing or being waived, the applicant files a $200 first-time fee covering three years, proof of liability insurance, proof of workers' compensation insurance if applicable, and a copy of the excise tax license, and is then approved by the City Council, which meets Monday evenings; paperwork is due by noon the previous Wednesday and permits may be drawn only after the vote. Renewal is $150 every three years. Building Inspection is at City Hall, 123 South Lincoln Street, 3rd Floor, 605-626-7017.

Brookings. Community Development issues a residential contractor license on paperwork alone. The requirements are the application, a $75 fee, an excise tax number, a copy of workers' compensation insurance and 'a copy of current General Commercial Liability Insurance Certificate stating the sum of not less than $500,000 for each occurrence.' There is no examination and no bond. The license year is the calendar year, January 1 to December 31, and it 'must be renewed in order to continue any current project or prior to starting any new project'; a contractor with a job in progress who lets it expire pays double the fee. The license is neither refundable nor transferable. Building permits are required in the city and on nonagricultural land in the joint jurisdictional area roughly three miles out. Community Development is at 520 3rd Street, Suite 140, (605) 692-6629.

Everywhere else. Smaller South Dakota cities set their own rules and many require only a permit and proof of insurance. Ask the building official in each city you intend to work in, and remember that the excise tax license is required statewide whether or not the city licenses anybody.

How it works in South Dakota. No South Dakota agency issues a general, commercial, building or unlimited contractor license, and there is no state qualifying party, business-and-law examination or financial responsibility test. Commercial construction is controlled through the building permit and the plan review, and by the state's requirement that commercial projects be designed and overseen by licensed architects and engineers. The one thing the state does require of every commercial contractor is a contractor's excise tax license from the Department of Revenue: 'an individual must be licensed before starting work in South Dakota. All contractors must be licensed regardless of the amount of the receipts they have or the amount of tax due.' It is free, it is applied for online, and the 2% contractor's excise tax is imposed on the gross receipts of the prime contractor. Get it first; cities ask for the card.

Rapid City. This is the one city of the four that licenses commercial builders, and its Class A license is the most demanding contractor credential in South Dakota. Class A is the 'General Contractor' class, 'for construction of any and All types of structures', and it is issued on the ICC National Standard General Building Contractor (A) examination, known as the G11, taken through Pearson VUE: 4.5 hours, 90 multiple-choice questions, open book, based on the 2018 International Building Code and the 2018 International Residential Code, with an examination fee of $115.00 and testing at the Career Learning Center, 730 E Watertown St. The license itself is $200 initially and $100 to renew, runs three years and carries six hours of continuing education per period. Every applicant files a certificate of insurance naming the City of Rapid City as certificate holder, and no other form is accepted, with minimum general aggregate liability of $1,000,000, $300,000 fire damage and $1,000,000 each occurrence, plus a workers' compensation certificate or a signed statement of non-participation. A copy of the South Dakota excise tax certificate is part of the packet, and an electrical contractor class separately requires proof of a South Dakota electrical contractor's license. No verifiable experience is required for Class A, and the packet offers no waiver, credit or reciprocity for a contractor license held in another city or another state: a licensee who lets the license lapse beyond the one-year grace period must reapply and pass the examination again. Building Services is on (605) 394-4120.

Sioux Falls. The city's position is one sentence long: 'The City of Sioux Falls does not require Commercial Building Contractors to be licensed at this time.' What it requires instead is that each individual project goes through plan review and obtains the proper permits. Note that apartment buildings count as commercial for construction purposes even though they are residential in use, so a multifamily builder falls outside the residential license as well. The electrical, mechanical, plumbing, refrigeration, sign and right-of-way trades are separately licensed by the city, and right-of-way contractors must be bonded and insured before working in a city right-of-way. Plans examiners are on 605-367-8248 and building inspectors on 605-367-8251.

Aberdeen. 'Because the majority of commercial construction projects are required to be designed and overseen by design professionals (i.e. Professional Architects and Professional Engineers), Commercial Contractors are not required to be licensed through the City of Aberdeen. Commercial Contractors are required to obtain a South Dakota Excise Tax License.' Electricians are licensed by the state, with state permits and state inspections in Aberdeen; plumbers are licensed by the state but permitted and inspected by city inspectors. Building Inspection is at City Hall, 123 South Lincoln Street, 3rd Floor, 605-626-7017.

Brookings. Community Development issues a residential contractor license, a plumber license, building permits and rental licenses, and publishes no commercial or general building contractor license; all work must conform to the International Building Code and electrical and plumbing work must be done by trades licensed by the state and the city. Because the city publishes no commercial contractor application, confirm what is expected of a commercial builder with Community Development on (605) 692-6629 before bidding. Building permits also apply on nonagricultural land in the joint jurisdictional area about three miles beyond the city.

Everywhere else. Other South Dakota cities set their own permit and licensing rules, and the further from the larger cities you go the more likely it is that a permit and proof of insurance are all that is asked. Check with each building official, and hold the state excise tax license wherever you work.