SB194TabledAppropriations
Classify nicotine products as tobacco products, to increase tax rates on cigarettes and tobacco products, to create the healthcare workforce development fund, and to make an appropriation therefor.
South Dakota will now treat nicotine products (like vaping products and nicotine pouches) the same as traditional tobacco products for tax and regulatory purposes. The bill increases tax rates on cigarettes and tobacco products and creates a new healthcare workforce development fund to receive some of that tax revenue. These changes expand what the state considers "tobacco products" beyond just cigars, snuff, and chewing tobacco to include nicotine-containing items.