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Marijuana in jar

Recreational (Adult-Use) Marijuana

On November 3, 2020, voters approved the addition of Constitutional Amendment A to the South Dakota Constitution. On February 8, 2021, the Sixth Judicial Circuit Court ruled Amendment A is unconstitutional. An appeal was filed with the South Dakota Supreme Court. On April 28, 2021, the South Dakota Supreme Court heard final arguments. At this time, the court has not issued a decision. 

Medical Cannabis Establishments

In addition to licensing requirements from a local government and Department of Health, businesses are required to have a sales tax license.

Sales tax applies to the gross receipts of all retail sales. The state sales and use tax rate is 4.5%. In addition, municipal tax will apply when customers take possession of the products within city limits.

Services utilized by the business establishment, such as accounting, payroll, and temp help services, are subject to state and local taxes.

For additional resources, please refer to the following:

For information regarding medical cannabis, please visit the Department of Health's website here.

Additional Information

As additional information is available, we will be updating our website. Please continue to check back.