IPCPR Legislative | Operating Your Business in South Dakota

Operating Your Business in South Dakota

southdakota

Operating Your Business in South Dakota

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 at https://apps.sd.gov/rv23cedar/main/main.aspx. 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 is 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 license
S.D. Codified Laws § 10-50-11: Fee for distributor or wholesaler license; reduced fee for part of 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
  • 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 backstreamed 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 can be found at https://www.state.sd.us/eforms/secure/eforms/E2121V1-AnnualTobaccoSalesReportingForm.pdf.

 

S.D. Codified Laws § 34-46-18: Smoking permitted in certain licensed establishments where alcohol sold

 

Localities may require additional business licenses.

South Dakota Department of Revenue: Cigarette/Tobacco Forms
http://dor.sd.gov/Taxes/Special_Taxes/Forms/Cigarette_Tobacco.aspx

 

EForm-1981: Tobacco Retailer Registration
https://www.state.sd.us/eforms/secure/eforms/E1981V1-TobaccoRetailerRegistration.pdf

 

EForm-1357: Tobacco Distributor License Application
https://www.state.sd.us/eforms/secure/eforms/E1357V1-CigaretteDistributorLicenseApplication.pdf

 

EForm-1358: Tobacco Wholesaler License Application
https://www.state.sd.us/eforms/secure/eforms/E1358V1-TobaccoWholesalerLicenseApplication.pdf

 

EForm-1973: Other Tobacco Products Monthly Tax Return for Distributors & Wholesalers
https://www.state.sd.us/eforms/secure/eforms/E1973V5-OTPMonthlyTaxReturn.pdf

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