The bill amends South Dakota's existing law regarding the taxation of tobacco products, specifically focusing on the definition of the wholesale purchase price. It establishes that the wholesale purchase price is defined as the price paid by licensed distributors or wholesalers for tobacco products, excluding any discounts or reductions. This clarification aims to ensure that the tax imposed on tobacco products, which is set at thirty-five percent of the wholesale purchase price, is applied consistently and fairly.

Additionally, the bill maintains provisions that allow licensed distributors or wholesalers who have paid the tax on tobacco products to receive a credit if they later sell those products to another licensed distributor or wholesaler for resale, or if they sell the products outside of South Dakota. This credit mechanism is designed to prevent double taxation and support the distribution of tobacco products within and outside the state.

Statutes affected:
Introduced, 01/08/2025: 10-50-61
Enrolled, 02/06/2025: 10-50-61