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Cigarette & Tobacco
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Retailer Information
Retailer Registration
Tobacco Distributors and Wholesalers
Manufacturer's Certification of Tobacco Brands
Internet and Mail Order Cigarette and Tobacco Product Sales
Cigarette and Tobacco Product Resources
Cigarette and Tobacco Online Forms
Retailer Information
The Department of Revenue is responsible for collecting the Cigarette Excise tax, Other Tobacco Products Tax, and regulating the tobacco industry in South Dakota.
Retailer Registration
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. There is a box to select to register as a tobacco retailer when applying for 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. If you need a list of licensed tobacco distributors and wholesalers, please contact the Business Tax Division.
If your business ceases selling cigarette / tobacco, you may contact the Business Tax Division to be removed from the registration database.
Tobacco Distributors and Wholesalers
As a tobacco distributor, you are required to purchase South Dakota tax stamps and apply them to each pack of cigarettes prior to distributing them to retailers. Licensed tobacco distributor are required to purchase at least seventy-five percent of their cigarettes and other tobacco products directly from the manufacturer.
Wholesalers are required to purchase cigarettes from a licensed distributor who has already applied the South Dakota tax stamps to cigarettes. They may purchase other tobacco products from a licensed distributor or directly from the manufacturer.
To become a licensed distributor or wholesaler, please complete a tax license application.
Tobacco Retailers should not apply for a tobacco distributor or tobacco wholesaler's license. If you have questions on registration please see the retailer's registration information listed above.
Manufacturers Certification of Tobacco Brands
Only certified tobacco brands (PDF) may be sold in South Dakota. Participating and non-participating manufacturers must complete the Tobacco Product Manufacturer Certification Form on an annual basis. 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.
Consumers purchasing cigarettes or tobacco products illegally online, over the phone, or by mail are subject to substantial taxes, interest, and penalties. Additionally, the product is considered to be contraband and is required to be forfeited to the state and destroyed.
Cigarette & Tobacco Product Resources
Cigarette & Tobacco Online Forms
Cigarette & Tobacco Frequently Asked Questions
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.
Rate:
- $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.
Rate:
- 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.