IPCPR Legislative | Shipping in South Dakota

Shipping in South Dakota

southdakota

Shipping in South Dakota

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 at the Operating Your Business link 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 at the Taxation and Definitions link above.

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