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Beginning January 1, 2022, authorized businesses may begin to ship cigars to consumers in South Dakota.

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Beginning January 1, 2022, authorized businesses may begin to ship cigars to consumers in South Dakota.

Businesses interested in shipping cigars to consumers in SD must first obtain a sales tax license and a cigar shipper license.  Both licenses may be applied for via the Department’s online tax license application.  There is no fee for a sales tax license but there is a $100 annual license fee for the cigar shipper license. The licenses may be applied for now, but shipment of cigars to consumers in SD is not allowed until January 1, 2022.

Other items of interest regarding the cigar shipper license include:

  • The license only allows cigars to be shipped to SD consumers.  All other tobacco products are still prohibited from being shipped directly to consumers in SD.
  • Cigars may only be sold and delivered to consumers who are 21 years of age or older.
  • Packaging must be conspicuously labeled indicating that the package contains cigars.
  • Licensees are required to remit the applicable sales tax and tobacco excise tax electronically on a quarterly basis.
  • Cigars shipped to consumers in SD may only be used for personal use and not resold.

 

You may view all of the laws and requirements regarding cigar shipper licenses on the LRC website under SDCL ch. 10-50C.  Feel free to contact our office at 1-800-829-9188 or SpecialT@state.sd.us if you have any questions. 

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