Alerts & Updates
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27 States + DC Enact Laws Related to Raising Smoking Age to 21
June 24, 2020Following the Federal Age of Tobacco Purchase increase from 18 to 21 that occurred in December of last year, 27 […]
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Key Contacts
South Dakota Department of Revenue
Special Taxes
(605) 773-7804
specialt@state.sd.us
South Dakota Secretary of State
(605) 773-3537
PCA Contact
Joshua Habursky
Glynn Loope joshua@premiumcigars.orgglynn@premiumcigars.org
Legislative Information
Taxation
South Dakota imposes a tax on all tobacco products in the state, whether or not a sale occurs, and on any person engaged in business as a licensed tobacco product distributor or wholesaler. The tax is imposed at the time the distributor or wholesaler: brings or causes to be brought into South Dakota tobacco products for sale; makes, manufactures, or fabricates tobacco products in South Dakota for sale in the state; or ships or transports tobacco products to dealers in South Dakota to be sold by those dealers.
S.D. Codified Laws § 10-50-61: Wholesale tax on tobacco products; credit for tax paid
Department of Revenue Staff reported that South Dakota counties, cities, or municipalities have the authority to levy an additional tax on tobacco products, but there are currently no additional local taxes.
The tax on tobacco products is 35% of the wholesale purchase price of the products. “Wholesale purchase price” means the price for which a manufacturer sells tobacco products to a licensed distributor or wholesaler exclusive of any discount or other reduction.
S.D. Codified Laws § 10-50-61: Wholesale tax on tobacco products; credit for tax paid
On or before the 15th day of each calendar month, each distributor or wholesaler required to pay the wholesale tobacco tax must file an Other Tobacco Products Monthly Tax Return for Distributors & Wholesalers (EForm-1973) with the Department of Revenue, along with payment for taxes due. Licensed distributors and wholesalers are also required to file a monthly report of other tobacco products sold to retailers located on Indian reservations in the state.
S.D. Codified Laws § 10-50-63: Deadline for reporting and remitting wholesale tobacco tax; penalty; credit or refund for destroyed unfit tobacco
| Form Type / Name | Form Number / Link |
| South Dakota Department of Revenue: Cigarette/Tobacco Forms | Cigarette/Tobacco Forms |
Cigar and Smoking Tobacco Definitions
Restrictions
South Dakota law prohibits smoking: in any public place, meaning any enclosed area to which the public is invited or in which the public is permitted; and in any place of employment, meaning any enclosed area under the control of a public or private employer.
S.D. Codified Laws § 34-46-14: Smoking in public or place of employment prohibited; petty offense
S.D. Codified Laws § 34-46-13: Definition of terms used in §§ 34-46-13 to 34-46-19
South Dakota HB 1209 (2019) provides that no person may smoke tobacco products or carry any lighted tobacco product in any public place or place of employment. Vapor products are included in the definition of “tobacco product“.
The Legislature is the exclusive regulator of all matters relating to the use of tobacco products. Nothing prohibits a person or a public entity from voluntarily regulating the use of tobacco products on the person’s or entity’s property.
S.D. Codified Laws § 10-50-64: Voluntary regulation of the use of tobacco products
The following are exempt from the ban on smoking, subject to conditions:
- Private residences, except when used for daycare
- Designated hotel or lodging establishment guest rooms
- Cigar bars
- Cigar bars must have a valid liquor license under S.D. Codified Laws § 35-4-2 and must have been in compliance on January 1, 2009, with, and maintain compliance with, the following requirements:
- Generates 10% or more of its annual gross income from the sale of cigars. A “cigar” is any individual roll of tobacco that has a wrapper or cover consisting only of tobacco, that measures a number 40 ring size or larger, and that is sold without a filter.
- Has a humidor on the premises, and
- It is enclosed by solid walls or windows, a ceiling, and a solid door and is equipped with a ventilation system by which exhausted air is not recirculated to nonsmoking areas and smoke is not back streamed into nonsmoking areas.
- Any establishment meeting the above requirements may permit the smoking of cigars and premium tobacco products purchased on the premises. However, no establishment may permit the smoking of any other tobacco product on the premises. The establishment must post a notice of the prohibition.
- Cigar bars must file an Annual Tobacco Sales Reporting Form (EForm-2121) with the Department of Revenue EForm-2121.
- Cigar bars must have a valid liquor license under S.D. Codified Laws § 35-4-2 and must have been in compliance on January 1, 2009, with, and maintain compliance with, the following requirements:
- Retail Tobacco Stores
- Retail tobacco stores must meet the following requirements:
- Generates 65% of its annual gross income from the sale of tobacco, tobacco products, and accessories for such products
- Is enclosed by solid walls or windows, a ceiling, and a solid door that provides egress to the outdoors, and
- Does not allow the consumption of alcoholic beverages on the premises
- Retail tobacco stores must file an Annual Tobacco Sales Reporting Form (EForm-2121) with the Department of Revenue.
- Retail tobacco stores must meet the following requirements:
S.D. Codified Laws § 34-46-16: Inapplicability to private residences unless used for daycare
S.D. Codified Laws § 34-46-17: Posted smoking rooms permitted in hotels and lodging establishments
S.D. Codified Laws § 34-46-18: Smoking permitted in certain licensed establishments where alcohol sold
S.D. Codified Laws § 34-46-19: Smoking permitted in certain retail tobacco stores
Individuals under 18 years of age cannot purchase or attempt to purchase, receive or attempt to receive, possess, or consume a tobacco product. Similarly, it is illegal to knowingly sell or distribute a tobacco product to a person under 18 years of age or to purchase a tobacco product on behalf of, or to give a tobacco product to, any person under 18 years of age.
S.D. Codified Laws § 34-46-2(1, 3): Unlawful actions
Department of Revenue staff reported that there is no state law regarding the minimum age a tobacco store clerk must be in order to sell tobacco products and that South Dakota has no minimum working age for children engaged in most nonhazardous employment.
Any merchant who has reasonable grounds to believe that a minor has illegally purchased, attempted to purchase, possessed, or consumed a tobacco product may detain the minor, on the premises of the merchant’s establishment, in a reasonable manner, for a reasonable length of time, and for a valid reason. A merchant who chooses to exercise this right must conspicuously post a notice, on the merchant’s premises, stating that any person who the merchant reasonably believes was under 18 years of age and who has attempted to purchase tobacco products will be detained and surrendered to a law enforcement officer.
S.D. Codified Laws § 34-46-2.1: Merchant may detain minor who purchases, attempt to purchase, or consumes tobacco product; conditions
S.D. Codified Laws § 34-46-2.2: Merchant to post a notice if minors attempting to purchase tobacco products will be detained
The Legislature is the exclusive regulator of all matters relating to the distribution, marketing, promotion, and sale of tobacco products.
S.D. Codified Laws § 34-46-6: Uniform regulation and implementation
In South Dakota, it is illegal to distribute tobacco product samples in or on a public street, sidewalk, or park that is within 500 feet of a playground, school, or other facilities when the facility is being used primarily by persons under 18 years of age.
S.D. Codified Laws § 34-46-2(7): Unlawful actions
Distribution of tobacco samples is subject to tax and licensing requirements, as South Dakota imposes a tax on all tobacco products in the state, whether or not a sale occurs, and “sale” or “sell” include or apply to gifts, exchanges, and barter. Department of Revenue staff reported that only tobacco manufacturers are allowed to distribute tobacco samples, and the manufacturers must have a Tobacco Wholesaler license and pay all taxes on the samples.
S.D. Codified Laws § 10-50-61: Wholesale tax on tobacco products; credit for tax paid
S.D. Codified Laws § 10-50-1(6): Definition of terms
The Legislature is the exclusive regulator of all matters relating to the distribution, marketing, promotion, and sale of tobacco products.
S.D. Codified Laws § 34-46-6: Uniform regulation and implementation
Operating Your Business
Each person selling tobacco products at retail in South Dakota must first obtain a Sales and Use Tax License by registering electronically through the South Dakota Tax Application website. Retail dealers must then file a Tobacco Retailer Registration form (EForm-1981) with the Department of Revenue. A separate registration is required for each retail outlet operated within the state.
S.D. Codified Laws § 10-50-9: License required of distributors and wholesalers; registration required of retailers; separate license or registration for each outlet; violation as petty offense
Each distributor or wholesaler engaging in the business of purchasing and selling untaxed tobacco products in South Dakota must obtain a license from the Secretary of Revenue. Tobacco distributors and wholesalers must file a Tobacco Distributor License Application (EForm-1357) or a Tobacco Wholesaler License Application (EForm-1358), respectively, and a $150 license fee. A separate application and license are required for each wholesale outlet if a person owns or controls more than one place of business dealing in tobacco products. Licenses expire on June 30th each year, and they must be renewed annually by filing the same forms.
S.D. Codified Laws § 10-50-9: License required of distributors and wholesalers; registration required of retailers; separate license or registration for each outlet; violation as petty offense
S.D. Codified Laws § 10-50-10: Contents of application for a license
S.D. Codified Laws § 10-50-11: Fee for distributor or wholesaler license; the reduced fee for part of the year
S.D. Codified Laws § 10-50-12: Display of license; duration; return of license on revocation
S.D. Codified Laws § 10-50-14: Annual renewal of license; fee
On or before the 15th day of each calendar month, each distributor or wholesaler required to pay the wholesale tobacco tax must file an Other Tobacco Products Monthly Tax Return for Distributors & Wholesalers (EForm-1973) with the Department of Revenue, along with payment for taxes due. Licensed distributors and wholesalers are also required to file a monthly report of other tobacco products sold to retailers located on Indian reservations in the state.
S.D. Codified Laws § 10-50-63: Deadline for reporting and remitting wholesale tobacco tax; penalty; credit or refund for destroyed unfit tobacco
Certain cigar bars may allow drinking and smoking within their establishments. Cigar bars must have a valid liquor license under S.D. Codified Laws § 35-4-2 and must have been in compliance on January 1, 2009, with, and maintain compliance with, the following requirements:
- Generates 10% or more of its annual gross income from the sale of cigars. A “cigar” is any individual roll of tobacco that has a wrapper or cover consisting only of tobacco, that measures a number 40 ring size or larger, and that is sold without a filter.
- Has a humidor on the premises, and
- It is enclosed by solid walls or windows, a ceiling, and a solid door and is equipped with a ventilation system by which exhausted air is not recirculated to nonsmoking areas and smoke is not back streamed into nonsmoking areas.
Any establishment meeting the above requirements may permit the smoking of cigars and premium tobacco products purchased on the premises. However, no establishment may permit the smoking of any other tobacco product on the premises. The establishment must post a notice of the prohibition. Cigar bars must file an Annual Tobacco Sales Reporting Form (EForm-2121) with the Department of Revenue. EForm-2121.
S.D. Codified Laws § 34-46-18: Smoking permitted in certain licensed establishments where alcohol sold
Localities may require additional business licenses.
| Form Type / Name | Form Number / Link |
| South Dakota Department of Revenue: Cigarette/Tobacco Forms | Cigarette/Tobacco Forms |
| Tobacco Retailer Registration | EForm-1981 |
| Tobacco Distributor License Application | EForm-1357 |
| Tobacco Wholesaler License Application | EForm-1358 |
| Other Tobacco Products Monthly Tax Return for Distributors & Wholesalers | EForm-1973 |
Political Involvement
Each lobbyist in South Dakota must register with the Secretary of State each year by filing a Lobbyist Registration Form, an Employer Authorization Form, and a $40 filing fee.
S.D. Codified Laws § 2-12-1: Names of lobbyists to be registered with the secretary of state; termination of employment.
S.D. Codified Laws § 2-12-4: Authorization to act as a lobbyist for an employer.
On or before July 1st of each year, each registered lobbyist and each employer of a registered lobbyist whose name appears in the directory in that year must submit to the Secretary of State a Lobbyist Expense Report Form or a 2015 Employer Expense Report Form, respectively.
S.D. Codified Laws § 2-12-11: Expense reports filed with the secretary of state; open to public inspection; administrative penalty for the untimely report.
After registration is completed, lobbyists and employers may file registration renewals and expense reports through the EZ Lobby website.
| Form Type / Name | Form Number / Link |
| South Dakota Secretary of State: Lobbyist Registration and Login | Lobbyist Registration and Login |
| EZ Lobby Login | EZ Lobby Login |
Shipping Regulations
The shipment or transportation of cigarettes and tobacco products to consumers by sellers or distributors prohibited. No person who is engaged in the business of selling or distributing cigarettes or tobacco products may ship or transport, or cause to be shipped or transported, cigarettes or tobacco products to any consumer in the state.
Each distributor or wholesaler engaging in the business of purchasing and selling untaxed tobacco products in South Dakota must obtain a license from the Secretary of Revenue.
S.D. Codified Laws § 10-50-9: License required of distributors and wholesalers; registration required of retailers; separate license or registration for each outlet; violation as petty offense
Additional information about licensing in South Dakota is available under the Operating Your Business tab above.
South Dakota does not allow the shipping of tobacco products to consumers. Therefore, South Dakota does not have any age-verification requirements for the shipping of tobacco products.
South Dakota imposes a tax on all tobacco products in the state, whether or not a sale occurs, and on any person engaged in business as a licensed tobacco product distributor or wholesaler. The tax is imposed at the time the distributor or wholesaler: brings or causes to be brought into South Dakota tobacco products for sale; makes, manufactures, or fabricates tobacco products in South Dakota for sale in the state; or ships or transports tobacco products to dealers in South Dakota to be sold by those dealers. All tobacco shipped into South Dakota is subject to the 35% wholesale tax on tobacco products.
Any licensed distributor or licensed wholesaler who has paid tax pursuant to this section and subsequently sells the tobacco products to another licensed distributor or licensed wholesaler for resale, or sells the tobacco products outside of this state, shall receive a credit for the tax paid pursuant to this section on such tobacco products.
S.D. Codified Laws § 10-50-61: Wholesale tax on tobacco products; credit for tax paid
Department of Revenue Staff reported that South Dakota counties, cities, or municipalities have the authority to levy an additional tax on tobacco products, but there are currently no additional local taxes.
Additional information about taxation in South Dakota, including information about tax rates, filings, and forms, is available under the Taxation and Definitions tabs above.
Disclaimer: PCA believes the information on this site is accurate. However, tobacco laws and regulations are subject to frequent change and court interpretation. Statements above are not intended as legal advice or restatement of law. PCA does not guarantee or assume responsibility for the accuracy, completeness or timeliness of this information, nor that this information complies with all federal laws or the laws of all 50 states. Parties acknowledge and agree it is not the intention of PCA to provide specific legal advice for particular individuals, but rather to provide users with general information to better understand these issues. Users shall neither construe any of these materials as legal advice nor make this site the primary basis for any legal decisions made by or on your behalf and agree to release and waive any claims against PCA for the same. You shall consult with legal advisors concerning any contemplated individual decision.