Title 10 — TAXATION

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…

Entities exempt from §

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 §

A cigar shipper who violates § 10-50C-4 or 10-50C-5 is subject to a civil penalty of one thousand dollars for a first offense and two thousand dollars for a second or subsequent offense. Penalties may be levied by the department. A common carrier who violates § 10-50C-6 is subjec…

A cigar shipper consents to the jurisdiction of the department and the courts of this state with respect to the enforcement of the provisions of this chapter. The cigar shipper shall allow the department to perform an audit of the cigar shipper's records, including any documents …

A cigar shipper shall file a quarterly return with the department on or before the fifteenth day of the month following each quarterly period even if no business was transacted during the reporting period. The return must include: (1) The business name, address, and cigar shipper…

Terms used in this chapter mean: (1) "Alternative nicotine product," a noncombustible product containing nicotine from any source or a nicotine analog that is intended for human consumption, whether chewed, absorbed, dissolved, ingested, inhaled, or consumed by any other means. T…

Each shipment, transport, or attempted shipment or transport, of nicotine products in violation of § 10-50D-8 constitutes a separate violation. Source: SL 2026, ch 53 , § 12. Effective July 1, 2026

Unless otherwise expressly provided, the penalties or remedies, or both, under §§ 10-50D-9 and 10-50D-10 are in addition to any other penalties and remedies available under any other law of this state. Nothing in §§ 10-50D-9 and 10-50D-10 prohibits the collection of any applicabl…

An alternative nicotine product shipped or transported under § 10-50D-8 is only for personal use and may not be resold. A violation of this section is a Class 1 misdemeanor. Source: SL 2026, ch 53 , § 15. Effective July 1, 2026

There is created a nicotine enforcement fund. The Department of Revenue shall administer the fund. The purpose of the fund is to defray expenses associated with the enforcement of this chapter. Moneys collected under § 10-50-11 and this chapter must be forwarded to the state trea…

A person, except a licensed distributor or licensed wholesaler under chapter 10-50 , shall secure a license pursuant to this chapter, prior to selling nicotine products in this state for resale. If a person owns or operates more than one place of business selling nicotine product…

A person located within or outside of this state is eligible for a nicotine product distributor license. To receive an initial or renewal nicotine product distributor license, an applicant shall: (1) File an application with the department on a form prescribed by the secretary; (…

Unless otherwise provided in this section, a nicotine product distributor license is valid from July first through June thirtieth. A license is valid for an additional three days if an application for a new license is in the possession of the department before midnight on the thi…

A nicotine product distributor shall maintain, for at least three years, all documentation detailing the manufacturer, address of the manufacturer, and sales, of all nicotine products. A nicotine product distributor shall submit to an inspection of inventory, products, and docume…

The secretary may revoke a nicotine product distributor license for failure to comply with any provision of state law. A person aggrieved by the revocation may, in writing, request a contested case hearing before the secretary. The request must be received by the department withi…

A nicotine product retailer may buy or receive nicotine products only from a licensee, or a licensed distributor or licensed wholesaler under chapter 10-50 . A violation of this section is a Class 2 misdemeanor. Source: SL 2026, ch 53 , § 9. Effective July 1, 2026

A person who is engaged in the business of selling or distributing nicotine products may not ship or transport, or cause to be shipped or transported, nicotine products directly to any consumer in this state, except as provided in this section or in chapter 10-50C . This section …

The attorney general may bring a civil action in circuit court for any violation of §

Terms used in this chapter mean: (1) "Alternative nicotine product," a noncombustible product containing nicotine from any source or a nicotine analog that is intended for human consumption, whether chewed, absorbed, dissolved, ingested, inhaled, or consumed by any other means. T…

A licensee shall keep complete records of all nicotine products held in the licensee's inventory and all nicotine products sold by the licensee, in a manner set forth in rules promulgated by the secretary pursuant to chapter 1-26 . The records must include information detailing t…

The secretary may, during normal business hours, inspect the records and premises of any licensee, and may conduct an investigation to determine whether the licensee has violated any provision of this chapter or rule promulgated thereunder. The secretary shall conduct an inspecti…

If the secretary receives information of a violation by any licensee of any provision of this chapter, the secretary must investigate the alleged violation. If there is substantial evidence to support that a violation of any provision of this chapter has occurred, the secretary m…

If a licensee is determined to have violated a provision of §§ 10-50E-8 to 10-50E-10 , inclusive, or a provision of chapter 34-46 , the secretary must assess a penalty according to the following schedule: (1) For a first violation, a fine of five hundred dollars; (2) For a second…

If the license of a retailer is revoked pursuant to § 10-50E-13 , the retailer must: (1) Destroy all nicotine products possessed by the retailer, at the time of the revocation, in accordance with all state and federal requirements related to hazardous materials; or (2) Return all…

If a licensee is determined to have violated any provision of this chapter, the licensee may appeal an action or decision of the secretary, in the same manner as provided in chapter 1-26 . Source: SL 2026, ch 54 , § 15, eff. Jan. 1, 2027. Effective January 1, 2027

The department shall promulgate rules, in accordance with chapter 1-26 , to: (1) Establish a procedure for an initial and a renewal license application under this chapter, and the information required in the application; (2) Provide for the manner in which nicotine products must …

There is created a nicotine enforcement fund. The department shall administer the fund. The purpose of the fund is to defray expenses associated with the enforcement of this chapter. Moneys collected under this chapter must be forwarded to the state treasurer to be deposited into…