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.
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.
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.
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.