South Dakota State Senate Bill 194, Classify Nicotine Products as Tobacco Products

Senate Bill 194, introduced by Senator Miskimins in 2025, proposes several changes regarding tobacco products, taxes, and healthcare funding in South Dakota.

Key Points:

Nicotine Products Classified as Tobacco: The bill redefines nicotine products as tobacco products, impacting taxation and regulation.
Tax Increases:
-The tax on cigarettes is raised significantly, with an increase from 76.5 to 151.5 mills per cigarette for all classes.
-A tax increase is also proposed on tobacco products, rising from 35% to 45% of the wholesale purchase price.
-New Healthcare Workforce Development Fund: Revenue from tobacco taxes exceeding certain thresholds (up to $60 million) will be directed into the creation of a healthcare workforce development fund, managed by the Department of Health. This fund will be used for training healthcare workers and growing the workforce in the state.
-Tobacco Prevention and Reduction Fund: Additional revenue will continue to fund tobacco prevention efforts.
-The bill aims to generate funds for healthcare development while also increasing taxes on tobacco products for public health initiatives.