South Dakota Marijuana Business
- South Dakota Cannabis
- South Dakota Marijuana Business
Related Pages:
South Dakota Marijuana Licensing >
What is the Demand for Marijuana in South Dakota?
The sale of medical marijuana is yet to commence in South Dakota, and recreational marijuana remains illegal. However, the sale of medical marijuana is scheduled to begin by November 2021.
How is Marijuana Taxed in South Dakota?
The sales of medical marijuana in South Dakota are scheduled to commence in November 2021. The state plans to impose an ad valorem excise tax (retail tax) and sales tax on the purchases of marijuana. The state fixes a 15% cannabis excise tax on retail marijuana sales. The cannabis excise tax is applicable to cater for the negative externalities (costs of the damages done to the health of other people in the surrounding). Negative externalities in the consumption of marijuana are determined by the level of THC (Tetrahydrocannabinol, the main psychoactive compound in marijuana) or the weight dispensed. The cannabis excise tax is also to cater for the costs internalized due to the consumption of marijuana. Kim Malsam-Rysdon, Secretary of South Dakota Department of Health, said in June 2021 that the sales tax on medical marijuana in South Dakota would be 4.5% of the retail price once legalized. This is added to the final purchase price that the consumer is required to pay.
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.
