Tobacco Taxes South Dakota's excise tax per pack of cigarettes: $0.530 South Dakota's excise tax collection for the fiscal year ending June 2002: $18,838,000 Sales tax on tobacco products: 4.00% Federal excise tax per pack of cigarettes: $0.39 Total federal excise tax collections in fiscal year 2002: $7,512,700,000

Who Profits from Cigarette Sales? click for larger view

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Number of six-packs of beer that must be sold in South Dakota to produce the same state excise tax revenue generated by one carton of cigarettes: 21.7

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Number of bottles of wine that must be sold in South Dakota to produce the same state excise tax revenue generated by one carton of cigarettes: 17.9

Smokers Pay Excise Taxes2	$	18,837,516
Smokers Pay Sales Taxes2	$	7,420,444
Smokers Pay Tobacco Settlement Payments3	$	24,942,579
	$	51,200,539

• Income1

South Dakota smokers' median household income	$	31,006
South Dakota nonsmokers' median household income	$	38,838

• Working Families Pay More1

39.8% of SD smokers had household income LESS than $25,000




5.3% of SD smokers had household income EQUAL to or GREATER THAN $75,000




The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.

• Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability4

Total average paid per South Dakota smoker in excise and sales taxes	$	212
Cost per South Dakota smoker for settlement payments to South Dakota	$	202
Total annual payment to South Dakota per smoker	$	414
Total annual payment to South Dakota per nonsmoker	$	0

TOTAL SMOKER CIGARETTE PAYMENTS TO SOUTH DAKOTA   Per year: $ 51,200,539 Per day: $ 140,179 Per hour: $ 5,841 Per minute: $ 97 Per second: $ 2

1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2001
2 Orzechowski & Walker, Arlington, Virginia; from state revenue department
3 PriceWaterhouseCooper
4 U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2001
5 Tax and Budget Comparisons are from the U.S. Census Bureau and the South Dakota Bureau of Finance and Management, Governor' Budget for Fiscal Year 2003. Online at http://www.state.sd.us/bfm/.

A summary of South Dakota state law is provided below
(for specific questions regarding state law, contact your legal advisor.)

Minimum Age	Customers must be 18 years or older to purchase tobacco products.
Restricted Products	Tobacco products including cigarettes, cigars, snuff, chewing tobacco, and any other products made up or composed of tobacco in whole or in part.
Acceptable Forms of Identification	Driver's license, non-driver identification card, or other generally accepted means of identification that contains a picture of the individual and appears on its face to be valid.
Fine/Penalty Schedule for Selling to Minors	Violators will be charged with a Class 2 misdemeanor and will be subject to a $200 fine and/or 30 days in jail. A person is not liable for more than one violation on a single day.
Affirmative Defense	Reasonable reliance upon proof of age of the purchaser or recipient is a complete defense.
Minor Possession	The purchase or attempted purchase, receipt or attempted receipt, or possession or consumption of a tobacco product by minors is prohibited. Violators will be charged with a Class 2 misdemeanor and will be subject to a $200 fine and/or 30 days in jail. It is a petty offense for any minor to purchase, attempt to purchase, possess or consume any smokeless tobacco product or to misrepresent his or her age for the purpose of purchasing or attempting to purchase any smokeless tobacco product. Any retailer who has reasonable grounds to believe that a minor has illegally purchased, attempted to purchase, possess, or consume a tobacco product, may detain the minor on the premises of the retail establishment, in a reasonable manner and for a reasonable length of time to request and verify identification, to make reasonable inquiry as to whether the minor has violated state law, to inform a law enforcement officer of the detention of the person and surrender that person to the custody of a law enforcement officer; or to inform a law enforcement officer or the parents, guardian, or other private person interested in the welfare of that minor of this detention and to surrender custody of the minor to that person. If a retailer elects to detain minors, the retailer shall first conspicuously post a notice on the premises stating that any person who the retailer reasonably believes is under the age of eighteen, and has attempted to purchase tobacco products, will be detained and surrendered to a law enforcement officer.
Sign Requirement	None.
Compliance Checks	As a condition of receiving federal substance abuse block grant funds, federal law requires the state of South Dakota to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. Local law enforcement officials or state attorneys may use minors to assist in the inspections, if supervised and, if written parental consent has been obtained. The Attorney General coordinates the inspections.
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law.

The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.

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