SDCL § 10-50-61 — Wholesale tax on tobacco products--Wholesale purchase price defined--Credit

In addition to the tax imposed by § 10-50-3 , there is imposed, whether or not a sale occurs, a tax upon all tobacco products in this state and upon any person engaged in business as a licensed distributor or licensed wholesaler thereof, at the rate of thirty-five percent of the wholesale purchase price of the tobacco products. The tax shall be imposed at the time the distributor or wholesaler brings or causes to be brought into this state tobacco products for sale; makes, manufactures, or fabricates tobacco products in this state for sale in this state; or ships or transports tobacco products to dealers in this state to be sold by those dealers.
For the purposes of this chapter, the wholesale purchase price is the price paid for tobacco products by the licensed distributor or licensed wholesaler, exclusive of any discount or other reduction.
Any licensed distributor or licensed wholesaler who has paid tax pursuant to this section and subsequently sells the tobacco products to another licensed distributor or licensed wholesaler for resale, or sells the tobacco products outside of this state, is entitled to receive a credit for the tax paid pursuant to this section on the tobacco products.