South Dakota Cottage Food Laws: A Comprehensive Guide
This guide offers a detailed overview of South Dakota’s cottage food law, summarizing exemptions, requirements, and practical steps for home‑based food entrepreneurs. It covers allowed foods, licensing exemptions, safety and labeling rules, tax obligations, and where you can legally sell your products.
Quick Facts
| Requirement | South Dakota |
|---|---|
| License Required | No for specific cottage foods sold directly to consumers; Yes for broader food service establishments |
| Registration Required | Only if operating as licensed food service |
| Home Inspection | No for cottage foods; Yes for licensed establishments |
| Food Safety Training | Certified food service manager required for licensed establishments; not for cottage foods (recommended safe practices) |
| Labeling Required | Not specified; use general good practice (ingredients/allergens) |
| Online Sales | Not addressed (likely not allowed without license) |
| Delivery | Not addressed |
| Shipping | Not addressed |
1. Introduction & Overview
South Dakota’s “cottage food” provisions allow certain home‑produced foods to be sold without a food service license, specifically at farmers markets, from the home, or similar venues — but only for specific products and under defined conditions according to the South Dakota Department of Health (doh.sd.gov) (doh.sd.gov).
2. Sales Limits / Revenue Caps
None of the provided official sources mention any annual revenue or sales‑volume limits for cottage food producers in South Dakota. If there are statutory caps, they were not accessible via the approved URLs. Entrepreneurs should verify directly with the Department of Health or the state legislature.
3. Licensing & Registration
Under South Dakota law, certain cottage foods are exempt from requiring a food service license, provided they are sold directly to consumers from a home, farmers market, or similar venue (doh.sd.gov).
However, if you wish to operate any regular food service establishment—such as a bakery, commercial kitchen, or catering business—you must follow the full licensing process managed by the Department of Health: plan submission, building approval, inspection, certification, and license application (doh.sd.gov).
4. Training Requirements
For licensed food service establishments, a certified food service manager is required under ARSD 44:02:07 (doh.sd.gov).
The cottage food exemption does not explicitly include any food safety training or certification requirement for home producers according to the Farmers Markets page (doh.sd.gov).
Nevertheless, following FDA guidelines for safe food handling—such as Clean, Separate, Cook, and Chill practices—is strongly recommended (fda.gov).
5. Home Kitchen Inspection
The cottage food exemption means no home kitchen inspection is required for the allowed products sold directly to consumers under relevant statutes and DOH guidance (doh.sd.gov).
Inspections are only required when pursuing a full food service license, which involves plan review and a final on‑site inspection (doh.sd.gov).
6. Allowed Foods
The DOH states that the license exemption applies only to specific types of food items, e.g., “home‑canned foods, baked goods, fresh and frozen meats, fish, produce, food samples, and more” (doh.sd.gov).
But exact lists of allowed cottage foods were not included in the DOH page. Sellers should consult the SD State Extension product regulations or confirm with DOH for precise definitions.
7. Prohibited Foods
No explicit list of prohibited foods is provided in the DOH information. The exemption does not apply to all food products or all regulations (doh.sd.gov).
Entrepreneurs should assume that high‑risk items not explicitly exempt—like certain dairy or time‑temperature control foods—are prohibited unless otherwise confirmed.
8. Labeling Requirements
The DOH site refers users to additional resources (via extension.sdstate.edu) for specific labeling rules (doh.sd.gov). But no label wording or formatting is provided in the official site.
Therefore, no exact label requirements (e.g., “made in a home kitchen”) could be confirmed from the approved sources.
9. Where You Can Sell
The cottage food exemption allows direct‑to‑consumer sales from:
- Home
- Farmers markets
- Similar venues such as roadside stands (doh.sd.gov).
No mention was made of online sales, delivery, or shipping options in the approved sources.
10. Sales Tax Requirements
South Dakota imposes 4.2% state sales tax, plus up to 2% municipal sales tax (and additional gross receipts taxes where applicable) (dor.sd.gov).
Sales by cottage food producers likely constitute retail sales of tangible products, meaning sellers must collect and remit sales tax, unless another exemption applies. Entrepreneurs should contact the Department of Revenue or consult the sales tax guide for specifics.
11. Special Exemptions
The primary exemption is for certain cottage food products sold directly to consumers from non‑commercial venues. No additional statutory exceptions are cited in the provided sources.
12. Getting Started: Practical Steps
- Confirm whether your products qualify under the cottage food exemption; contact SD DOH or Extension for detail.
- Ensure safe preparation practices, guided by FDA’s Clean, Separate, Cook, and Chill steps (fda.gov).
- Prepare labeling—even if unspecified, consider including ingredients, allergen info, and clear source identity.
- Plan sales venues: home, farmers market, roadside stand.
- Register for sales tax, collect appropriate rates, and file with SD DOR (dor.sd.gov).
- If you expand beyond cottage food limits, pursue food service licensure: submit plans, complete training, pass inspection (doh.sd.gov).
13. Official Resources
- South Dakota Department of Health – Farmers Markets / Cottage Food Info: doh.sd.gov/topics/food‑lodging‑safety/farmers‑markets/
- SD Department of Health – Food Service Licensing: doh.sd.gov/topics/food‑lodging‑safety/licensure‑and‑codes/food‑service/
- SD Department of Revenue – Sales & Use Tax: dor.sd.gov/individuals/taxes/sales‑use‑tax/
- FDA – Safe Food Handling Guidance: fda.gov/food/buy‑store‑serve‑safe‑food/safe‑food‑handling
Entrepreneurs should also consult SD State Extension and the State Legislature for product‑specific definitions and statutory language.
Official Sources
This guide was compiled from the following official sources:
Important Notes
⚠️ The South Dakota statutes (34‑18‑34, 34‑18‑36, 34‑18‑37) could not be accessed due to site restrictions; legal definitions and limits in statute may contain additional requirements not captured here.
⚠️ Allowed/prohibited food lists and labeling specifics are not provided in the approved DOH pages; sellers should seek direct guidance from DOH or Extension.