South Dakota Marijuana Tax Revenue 2024

What is the Tax Rate for Marijuana in South Dakota?

In South Dakota, the taxation of cannabis encompasses both state and local levels to ensure comprehensive revenue collection. Marijuana businesses in South Dakota are subject to a 4.2% state sales and use tax on the gross receipts of all retail sales. Additionally, municipal taxes are imposed when customers take possession of cannabis products within city limits. This structured approach ensures that both state and local governments benefit from cannabis sales, thereby contributing to public revenues and supporting community services.

Source: South Dakota Department of Revenue