Title 10, TAXATION

No distributor or wholesaler or other person may: (1) Affix a South Dakota cigarette tax stamp to a package or other container of cigarettes, or pay South Dakota cigarette tax on cigarettes of a tobacco product manufacturer or brand family not included in the directory; or (2) Se…

Any nonresident or foreign nonparticipating manufacturer that has not registered to do business in the state as a foreign corporation or business entity shall, as a condition precedent to having its brand families listed or retained in the directory, appoint and continually engag…

A nonparticipating manufacturer shall provide notice to the secretary thirty calendar days prior to termination of the authority of an agent established by § 10-50-83 and shall further provide proof to the satisfaction of the secretary of the appointment of a new agent no less th…

Any nonparticipating manufacturer whose products are sold in this state without appointing or designating an agent as required by §§ 10-50-72 to 10-50-92 , inclusive, shall be deemed to have appointed the secretary of state as its agent and may be proceeded against in courts of t…

The secretary may disclose to the attorney general any information received under §§ 10-50-72 to 10-50-92 , inclusive, and requested by the attorney general for purposes of determining compliance with and enforcing the provisions of §§ 10-50-72 to 10-50-92 , inclusive, and chapte…

The attorney general may require a nonparticipating manufacturer to provide proof from the financial institution in which the manufacturer has established a qualified escrow fund for the purpose of compliance with chapter 10-50B , of the amount of money in the fund being held in …

Any cigarettes that have been sold, offered for sale, or possessed for sale in violation of §§ 10-50-72 to 10-50-92 , inclusive, are contraband goods and may be legally seized, without a warrant, by the secretary, the secretary's agents or employees, or by any law enforcement off…

The secretary, for purposes of §§ 10-50-72 to 10-50-92 , inclusive, may promulgate rules pursuant to chapter 1-26 concerning the procedures, forms, and contents for: (1) The certification process for tobacco product manufacturers; (2) The reporting requirements for distributors a…

Each person, except a retailer, engaging in the business of selling cigarettes or tobacco products in this state, including any distributor or wholesaler, shall secure a license therefore from the secretary of revenue. A separate application and license is required for each whole…

The attorney general may seek an injunction to restrain a threatened or actual violation of §§ 10-50-72 to 10-50-92 , inclusive. In any action brought by the state to enforce the provisions of §§ 10-50-72 to 10-50-92 , inclusive, the court shall award the state the recovery of it…

The first report required of a distributor or wholesaler under §§ 10-50-72 to 10-50-92 , inclusive, is due July 15, 2003, the tobacco product manufacturer certifications required under §§ 10-50-72 to 10-50-92 , inclusive, are due August 15, 2003, and the secretary shall have the …

If a court of competent jurisdiction finds that the provisions of §§ 10-50-72 to 10-50-92 , inclusive, and of chapter 10-50B conflict and cannot be harmonized, then the provisions of chapter 10-50B shall control. If any provision of §§ 10-50-72 to 10-50-92 , inclusive, causes cha…

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. This section applies regardless of whether the person enga…

The Legislature finds the following: (1) Cigarette smoking presents serious public health concerns to the State of South Dakota and to the citizens of the state. The surgeon general of the United States has determined that smoking causes lung cancer, heart disease, and other seri…

Each failure to make a quarterly deposit required under § 10-50B-7 constitutes a separate violation. Source: SL 1999, ch 60 , § 10; SL 2010, ch 68 , § 3.

Any money received from the Master Settlement Agreement signed on November 23, 1998, by attorneys general from several states and various tobacco companies shall be deposited in the education enhancement trust fund as provided in S.D. Const., Art. XII, § 6. Source: SL 2000, ch 66…

The investment of moneys in the education enhancement trust fund as provided in S.D. Const., Art. XII, § 6 is not restricted by the provisions of § 4-5-26 , but is governed by the provisions of § 4-5-27 . Source: SL 2001, ch 152 , § 6. 10-50B-12

The secretary of revenue may revoke the license of any distributor or wholesaler for failure to comply with the provisions of § 10-50B-6 and any rule promulgated pursuant to that section. Any person aggrieved by such revocation may apply to the secretary for a hearing as provided…

If any portion of SL 2010, ch 68 is held by a court of competent jurisdiction to be unconstitutional, then SL 2010, ch 68 is deemed repealed and the provisions of chapter 10-50B are deemed unaltered. Neither any holding of unconstitutionality nor the repeal of SL 2010, ch 68 affe…

Notwithstanding the provisions of § 10-50B-8 , a manufacturer that elects to deposit money into a qualified escrow fund pursuant to § 10-50B-7 may assign to the state the interest of the manufacturer in any money in the qualified escrow fund. An assignment executed under this sec…

The parties to a qualified escrow agreement may amend the agreement for the purposes of executing an assignment pursuant to § 10-50B-15 . An assignment executed pursuant to § 10-50B-15 shall be in writing and signed by the assignee and the assignor or by an authorized agent or re…

Nothing in §§ 10-50B-15 and 10-50B-16 relieves a manufacturer from any obligation or duty imposed pursuant to this chapter or chapter 10-50 . Source: SL 2019, ch 67 , § 3.

Any person that imports cigarettes into the United States shall be jointly and severally liable with any tobacco product manufacturer required to place a deposit into a qualified escrow fund pursuant to subdivision 10-50B-7 (2) for the obligation to make the deposit into the qual…

Before being listed in the state directory of manufacturers and brands permitted to be sold, any tobacco product manufacturer required to place a deposit into a qualified escrow fund pursuant to subdivision 10-50B-7 (2) shall provide a surety bond to the attorney general at least…

In enacting §§ 10-50B-1 to 10-50B-10 , inclusive, it is the intention of the Legislature that: (1) It is the policy of the state that financial burdens imposed on the state by cigarette smoking be borne by tobacco product manufacturers rather than by the State of South Dakota to …

Notwithstanding any other law, the secretary of revenue or the attorney general may disclose, at the discretion of the secretary or the attorney general, any information received pursuant to title 10 for purposes of the proper administration, determination of compliance, or enfor…

Terms used in §§ 10-50B-1 to 10-50B-1 0, inclusive, mean: (1) "Adjusted for inflation," increased in accordance with the formula for inflation adjustment set forth in the Master Settlement Agreement; (2) "Affiliate," a person who directly or indirectly owns or controls, is owned …

For the purposes of §§ 10-50B-1 to 10-50B-1 0, inclusive, the term, cigarette, means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains: (1) Any roll of tobacco wrapped in paper or in any substance …

For the purposes of §§ 10-50B-1 to 10-50B-1 0, inclusive, the term, tobacco product manufacturer, means an entity that, on or after July 1, 1999, directly, and not exclusively through any affiliate: (1) Manufactures cigarettes anywhere which the manufacturer intends to be sold in…

For the purposes of §§ 10-50B-1 to 10-50B-10 , inclusive, the term, units sold, means the number of individual cigarettes sold in the state by the applicable tobacco product manufacturer, whether directly or through a distributor, retailer, or similar intermediary or intermediari…

Any tobacco product manufacturer selling cigarettes to consumers within the state, on or after July 1, 1999, whether directly or through a distributor, retailer, or similar intermediary or intermediaries, shall do one of the following: (1) Become a participating manufacturer, as …

A tobacco product manufacturer that places funds into escrow pursuant to § 10-50B-7 shall receive the interest or other appreciation on such funds as earned. Such funds themselves shall be released from escrow only under the following circumstances: (1) To pay a judgment or settl…

If any portion of the amendment to subdivision 10-50B-8(2) made by SL 2004, ch 99 is held by a court of competent jurisdiction to be unconstitutional, then subdivision 10-50B-8(2) shall be deemed to be repealed in its entirety. If that repeal of subdivision 10-50B-8(2) is thereaf…

Each tobacco product manufacturer that elects to place funds into escrow shall quarterly certify its compliance with § 10-50B-7 to the attorney general. The attorney general may bring a civil action on behalf of the State of South Dakota against any tobacco product manufacturer t…

Terms used in this chapter mean: (1) "Cigar", any individual roll of tobacco that has a wrapper or cover consisting only of tobacco; (2) "Cigar shipper," any person who has obtained a cigar shipper license pursuant to this chapter; (3) "Common carrier," a carrier that holds itsel…

A cigar shipper shall remit the tax prescribed pursuant to § 10-50-61 based upon the wholesale purchase price, as defined in this chapter, for any cigars sold and shipped to a consumer in this state. If there is no wholesale purchase price, the cigar shipper shall remit the tax p…

The following entities are exempt from the provisions of § 10-50C-10 : (1) A cigar shipper who is also a licensed distributor or licensed wholesaler pursuant to chapter 10-50 and who has already remitted the tax pursuant to § 10-50 -61 on cigars brought into this state that were …

The cigar shipper shall file a return required to be filed pursuant to § 10-50C-9 by electronic means with the department. The cigar shipper shall remit any taxes required to be remitted pursuant to § 10-50C-10 by electronic means to the department. Source: SL 2021, ch 52 , § 12,…

A sale and shipment of cigars to a person in this state from a person who does not hold a current cigar shipper license is prohibited. Any person who violates this section is also in violation of § 10-50-99 and is subject to the provisions of §§ 10-50-100 to 10-50-104 , inclusive…

Cigars shipped to any person in this state pursuant to this chapter may only be used for personal use and may not be resold. It is a Class 1 misdemeanor for any person to resell or attempt to resell any cigar obtained pursuant to the provisions of this chapter. Source: SL 2021, c…

The department may promulgate rules, pursuant to chapter 1-26 , concerning: (1) Forms necessary for the implementation of this chapter; (2) Reporting and tracking requirements for cigar shipper licensees; and (3) The procedure for filing tax returns and the remittance of all appl…

Any person located within or outside of this state may obtain a cigar shipper license. An applicant for an initial or renewal cigar shipper license shall: (1) File an application with the department on a form prescribed by the department; (2) Pay a license fee of one hundred doll…

A cigar shipper license is valid from July first to June thirtieth, inclusive. However, the license is valid for an additional three days if a proper application for a new license is in the possession of the department before midnight on the thirtieth day of June when the license…

Notwithstanding § 10-50-99 , a cigar shipper may sell and ship cigars to any person in this state who is twenty-one years of age or older. Before shipping the cigars, the cigar shipper shall verify the age of the person placing the order by obtaining a copy of the person's valid …

A cigar shipper shall conspicuously label each package to be shipped with words indicating that the package contains cigars and that the signature of a person twenty-one years of age or older is required for delivery. Source: SL 2021, ch 52 , § 5, eff. Jan. 1, 2022.

Each shipment of cigars made pursuant to this chapter shall be delivered by a common carrier with a label that complies with the provisions of § 10-50C-5 . The common carrier shall obtain the signature of a person twenty-one years of age or older prior to delivery of the shipment…