South Dakota Marijuana Business

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South Dakota Marijuana Licensing >

What is the Demand for Marijuana in South Dakota?

South Dakota’s recently launched medical marijuana program is already bringing increasing demand for medical cannabis in the state. To underscore the current demand for marijuana, as of May 15 2023, the state’s medical marijuana program has 9,836 registered patients and 217 approved medical practitioners capable of recommending medical cannabis. Historic data show that South Dakota is still adding new patients to its medical marijuana program every month, almost 2 years after it opened registration.

How is Marijuana Taxed in South Dakota?

South Dakota charges a state sales and use tax of 4.5% on medical marijuana sales. In addition, the state also has a municipal tax on medical cannabis sales. This tax applies for all marijuana products and services sold and consumed with city limits. The South Dakota Department of Revenue regularly publishes the state’s municipal tax schedule on its website. The current municipal tax rate in South Dakota varies between 1% and 2%. There is an additional tax on foods and beverages infused with cannabis. Referred to as municipal gross receipts tax, this applies to prepared foods and ready-to-drink beverages containing cannabis products. The current rate of municipal gross receipts tax in South Dakota is 1%.

What is the Agency Taxing Marijuana Business in South Dakota?

The South Dakota Department of Revenue is in charge of marijuana taxes and revenues for the state. The department administers a wide range of taxes, including excise tax, sales tax, and corporate income tax. It also offers other state revenue-related services such as vehicle title and registration services, personalized and specialty plates, property tax, tax filing, etc.

The head office of the South Dakota Department of Revenue is located at:

445 East Capitol Avenue

Pierre, SD 57501-3185

Phone: (605) 773-3311

Toll-Free Phone: 1 (800) 829-9188

The Department of Revenue has provisions for remote access to its services. Members of the public can do a live chat with the DOR through its website. They can also request a virtual visit to the DOR by completing the request form virtual visit online.

The DOR also has branch offices in different cities across South Dakota. These offices are specialized for different services offered by the DOR. The contacts of the branch offices are:

Aberdeen Office:

14 South Main, Suite 1-C

Aberdeen, SD 57401-4189

Phone: (605) 626-2218

Email: bustax@state.sd.us

The Aberdeen office could be contacted for audit and business tax information and motor vehicle information.

Deadwood Office:

87 Sherman Street,

Deadwood, SD 57732

Phone: (605) 578-3074 and (605) 578-2263

The Deadwood Office could be contacted for gaming tax information:

Mitchell Office:

417 North Main, Suite 112

Mitchell, SD 57301

Phone: (605) 995-8080

Email: bustax@state.sd.us

The Mitchell Office could be contacted for audit and business tax information.

Pierre Office:

445 East Capitol Avenue,

Pierre, SD 57501-3185

Phone:(605) 773-3311

Email: bustax@state.sd.us and specialT@state.sd.us

The Pierre Office could be contacted for audit and business tax information, property tax information, motor vehicle information, and lottery information.

Rapid City Office:

1520 Haines Avenue, Suite 3

Rapid City, SD 57701

Phone: (605) 394-2332

Email: bustax@state.sd.us

The Rapid City Office could be contacted for audit and business tax information, motor vehicle information, and lottery information.

Sioux Falls Office:

300 South Sycamore Avenue

Suite 102, Sioux Falls

SD 57110

Phone:(605) 367-5800

Email: bustax@state.sd.us

The Sioux Falls Office could be contacted for audit and business tax information, motor vehicle information, and lottery information.

Watertown Office:

715 South Maple

Watertown, SD 57201

Phone: (605) 882-5188

Email: bustax@state.sd.us

The Watertown Office could be contacted for audit and business tax information, and motor vehicle information.

Yankton Office:

1900 Summit Street

Yankton, SD 57078

Phone: (605) 668-2939

Email: bustax@state.sd.us

The Yankton Office could be contacted for audit and business tax information.

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South Dakota Marijuana Business