The bill amends South Dakota's tax law regarding tobacco products, specifically clarifying the definition of the wholesale purchase price. It establishes that the wholesale purchase price is the amount paid by licensed distributors or wholesalers for tobacco products, excluding any discounts or reductions. This clarification aims to ensure consistency in the application of the tax imposed on tobacco products, which is set at thirty-five percent of the wholesale purchase price.

Additionally, the bill maintains provisions that allow licensed distributors or wholesalers who have paid the tax to receive a credit if they sell the tobacco products to another licensed distributor or wholesaler for resale, or if they sell the products outside of South Dakota. This credit system is designed to prevent double taxation on tobacco products as they move through the distribution chain.

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