South Dakota

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

Brett Mecum brett@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 / NameForm Number / Link
South Dakota Department of Revenue: Cigarette/Tobacco FormsCigarette/Tobacco Forms

Cigar and Smoking Tobacco Definitions

Tobacco products” means cigars, snuff, chewing tobacco, vapor products, and any other products made up or composed of tobacco in whole or in part, except cigarettes.

S.D. Codified Laws § 10-50-1(8)

South Dakota HB 1209 (2019)

A “distributor” is any person engaged in this state in the business of producing or manufacturing cigarettes or tobacco products or importing into the state cigarettes or tobacco products, at least 75% of which are purchased directly from the manufacturers.

S.D. Codified Laws § 10-50-1(3)

A “dealer” or “retailer” is any person other than a distributor or wholesaler who is engaged in the state in the business of selling cigarettes or tobacco products at retail.

S.D. Codified Laws § 10-50-1(2)

Sale” or “sell” include or apply to gifts, exchanges, and barter.

S.D. Codified Laws § 10-50-1(6)

Electronic smoking device,” any e-cigarette, e-cigar, e-pipe, e-hookah, or vape pen containing or delivering nicotine or any other substance intended for human consumption that may be used by a person in any manner for the purpose of inhaling vapor or aerosol from the product.

South Dakota HB 1209 (2019)

Smoke” or “Smoking,” the act of inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, pipe, hookah, or any other lighted or heated tobacco or plant product intended for inhalation, whether natural or synthetic, in any manner or in any form, including the use of an electronic smoking device which creates an aerosol or vapor, in any manner or in any form.

South Dakota HB 1209 (2019)

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.
  • 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

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 / NameForm Number / Link
South Dakota Department of Revenue: Cigarette/Tobacco FormsCigarette/Tobacco Forms
Tobacco Retailer RegistrationEForm-1981
Tobacco Distributor License ApplicationEForm-1357
Tobacco Wholesaler License ApplicationEForm-1358
Other Tobacco Products Monthly Tax Return for Distributors & WholesalersEForm-1973

Political Involvement

A “lobbyist” is any person who seeks the introduction of legislation or promotes, opposes, or influences in any manner the passage by the Legislature of any legislation affecting the special interests of any agency, individual, association, or business, as distinct from those of the whole people of the state, or acts in any manner as a lobbyist in connection with any such legislation.

S.D. Codified Laws § 2-12-1: Names of lobbyists to be registered with the secretary of state; termination of employment

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 / NameForm Number / Link
South Dakota Secretary of State: Lobbyist Registration and LoginLobbyist Registration and Login
EZ Lobby LoginEZ 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. 

S.D. Codified Laws § 10-50-99


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.