Cigarette & Tobacco
The Department of Revenue is responsible for collecting the Cigarette Excise tax, Other Tobacco Products Tax, and regulating the tobacco industry in South Dakota.
To sell tobacco products (including cigarettes, cigars, pipe tobacco, and smokeless tobacco), retailers are required to have a Sales and Use Tax License. All businesses that sell cigarettes or other tobacco products at retail are required to register with the Department. There is no fee for this registration, no extra taxes, and no extra filing or reporting requirements. The registration will work in conjunction with your sales tax license. Tobacco retailers may only purchase their tobacco products from distributors and wholesalers licensed by the State of South Dakota. Retailers will be required to keep documentation showing all tobacco products were purchased from a licensed distributor or wholesaler.
How to Register
If your business sells cigarettes / tobacco and opened after July 2007, you should have indicated your Tobacco Retailer status on your Tax License Application. If your business ceases selling cigarette / tobacco, contact the Department to be removed from the registration database. To register, you can apply online, or print and mail ticket to:
Attn: Dept. of Revenue
1302 E Hwy 14 Suite 1
Pierre, SD 57501-8501
Certification of Tobacco Brands
Only certified tobacco brands (PDF) may be sold in South Dakota. Participating manufacturers must complete a Tobacco Product Manufacturer Certification form (PDF) if their brand is not listed. If the certification is approved by the Department of Revenue, the brand will be listed and approved for sale. Nonparticipating Manufacturers with brands listed on the directory or which had sales in South Dakota also need to file a Certificate of Compliance with the Attorney General’s Office every quarter.
Internet and Mail Order Cigarette and Tobacco Product Sales
The shipment or transport of cigarettes or tobacco products to consumers in South Dakota is illegal under South Dakota law SDCL 10-50-99. Persons engaged in the business of selling or distributing cigarettes or tobacco products who ship or transport said products to consumers in South Dakota are subject to injunctions, substantial monetary penalties and surrender of profits.
A consumer who purchases cigarettes or tobacco products online, over the phone or by mail, is required to pay the same tax he or she would have paid if he or she had purchased the cigarettes or tobacco products from a South Dakota retailer, plus penalty and interest on unpaid tax liability. Any cigarettes or tobacco products on which the tax has not been paid are contraband and subject to seizure.
Other Cigarette & Tobacco Resources
- SD RYO Cigarette Manufacturer Requirements (PDF)
- SD Cigarette P.A.C.T. Act Report (PDF) and SD Tobacco P.A.C.T. Act Report (PDF)
- Cigarette Distributor's Monthly Report
- Distributors Quarterly Tobacco Shipment Report
- NPM Certificate of Compliance Escrow Payment 2019 Qtr 1 (PDF)
- NPM Certificate of Compliance Escrow Payment 2019 Qtr 2 (PDF)
- NPM Certificate of Compliance Escrow Payment 2019 Qtr 3 (PDF)
- NPM Certificate of Compliance Escrow Payment 2019 Qtr 4 (PDF)
- OTP Sales for Tribal
- Other Tobacco Products Monthly Tax Return
- Wholesalers Quarterly Tobacco Shipment Report
- Annual Tobacco Sales Reporting Form (PDF)
Cigarette & Tobacco Online Tax Forms
See what others are asking about cigarette and tobacco taxes.
Cigarette taxes are paid by the distributors when they purchase the stamps that are found on each pack of cigarettes sold in South Dakota. The stamps are required to be placed on each pack of cigarettes prior to the sale to a retailer.
- $1.53 per pack of 20 cigarettes
- $1.92 per pack of 25 cigarettes
The Other Tobacco Product Tax (OTP) is paid by wholesalers and distributors when they ship or deliver the products to a South Dakota retailer. This tax applies to cigars, snuff, chewing tobacco, and any other tobacco product except for cigarettes.
- 35% of the wholesale purchase price
Both cigarettes and other tobacco products are subject to the 4.5% state sales tax rate plus the general municipal sales tax rates when sold at retail.
Of the taxes collected, the first $30 million is deposited into the State General Fund. The next $5 million goes to the Tobacco Prevention & Reduction Trust Fund. Any additional funds are then deposited into the State General Fund.