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Bill

SB 54

revise the distribution of revenue from the cigarette tax.

2025 Regular Session

South Dakota SB 54 redirects cigarette tax revenue among state programs, shifting funding priorities away from current distribution formulas.

Signed by the Governor on 2025-03-31 S.J. 539
#executive/judiciaryrequest #fund #taxation #tobacco
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Bill Summary · SB 54

Legislative bill overview

SB 54 modifies how South Dakota distributes revenue collected from its cigarette tax. The bill redirects portions of this tax revenue among different state funds and programs rather than maintaining the current distribution formula. This became law on March 31, 2025, after passing both chambers with strong majorities.

Why is this important

Cigarette tax revenue funds critical state programs including healthcare, tobacco prevention, and education initiatives. Changes to distribution formulas directly affect which programs receive more or less funding and can impact public health outcomes, state budgets, and specific constituencies that depend on these revenue streams.

Potential points of contention

  • Program funding priorities: Different state agencies and programs competing for cigarette tax revenue may gain or lose significant funding, creating winners and losers among state priorities
  • Public health impact: Depending on whether tobacco prevention or cessation programs increase or decrease funding, the bill could either strengthen or weaken anti-smoking initiatives
  • Equity concerns: Revenue redistribution may disproportionately affect rural versus urban areas, or lower-income communities that have higher smoking rates and depend more heavily on associated services

Compiled from official sources — confirm details with the bill’s official record.

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