South Dakota: Marijuana Tax Handbook

South Dakota:

South Dakota Marijuana Tax Rate

Sales Tax Medical Excise Tax Medical Max Medical Tax Sales Tax Recreational Excise Tax Recreational Max Recreational Tax
N/A N/A N/A 4.50% 15.00% 19.50%

2024 South Dakota Marijuana Tax Handbook

Medical marijuana legal in South Dakota, but there is no cannabis sales tax for it.

South Dakota consumers are required to pay a 4.50% sales tax on every purchase of marijuana for personal use. There is also an additional excise tax of 15% on every purchase of marijuana for personal use.

About South Dakota Marijuana Tax

Recreational cannabis sales are subject to the statewide 4.5% sales tax in addition to the 15% excise tax. Medical and qualified patients are not taxed.

Medical marijuana sales will not be taxed in South Dakota. If recreational legalization bill Amendment A becomes active, after the Supreme Court pending ruling, adult-use sales will be subject to a 15% marijuana excise tax. The Legislature can alter this rate after November 3, 2024.

What is the most recent revenue statistic for South Dakota?

$29.3 Million

Revenue accrued are dispensed to cover costs associated with implementing the amendment, 50% of the remaining revenue was set aside to fund state public schools and 50% would be kept in the state's general fund

Is the South Dakota Marijuana Tax Weight-Based or Percentage-of-price-Based?

South Dakota's marijuana program uses a Percentage-of-price tax system. This means that the tax charged is calculated using the retail price of the Marijuana at the time of purchase.

Does South Dakota have a Controlled Substances Tax?

South Dakota declared as criminal, the unauthorized manufacture, distribution, counterfeiting or possession of marijuana and other controlled substances in the 2019 South Dakota Code Laws (SDCL)Title 22 - Chapter 42. Civil sanctions the Court may impose any amount not more than $10,000 which shall be remitted to a drug abuse prevention and rehabilitation program authorized under Chapter 34-3B-1

How do South Dakota's marijuana taxes compare to the states around it?

North Dakota

Note: It is illegal to transport marijuana accross state lines.

For more information about South Dakota Marijuana Taxes, visit the South Dakota Marijuana Tax page.

** This Document Provided By SalesTaxHandbook **