South Dakota State Excise Taxes 2016 - Fuel, Cigarette, and Alcohol Taxes
22.00¢ per gallon
$1.53 per pack
$4.63 per gal
$1.27 per gal
27¢ per gal
- What are South Dakota's Excise Taxes?
- South Dakota General Excise Taxes
- South Dakota Alcohol Taxes
What is an Excise Tax?
An excise tax is a tax directly levied on certain goods by a state or federal government. The most prominent excise taxes collected by the South Dakota state government are the fuel tax on gasoline and the so-called "sin tax" collected on cigarettes and alcoholic beverages.
An excise tax is not the same thing as the South Dakota Sales Tax.The South Dakota Sales Tax is collected as a percentage of the final purchase price of all qualifying sales, and is collected directly from the end consumer of the product.
South Dakota's excise taxes, on the other hand, are flat per-unit taxes that must be paid directly to the South Dakota government by the merchant before the goods can be sold. Merchants may be required to attach tax stamps to taxable merchandise to show that the excise tax was paid.
Even though excise taxes are collected from businesses, virtually all South Dakota merchants pass on the excise tax to the customer through higher prices for the taxed goods.
South Dakota per capita excise tax
South Dakota collects an average of $433 in yearly excise taxes per capita, lower then 56% of the other 50 states.
South Dakota General Excise Taxes - Gasoline, Cigarettes, and More
South Dakota collects general excise taxes on the sale of motor fuel (gasoline and diesel), cigarettes (per pack), and cell phone service plans. Other general taxes, similar to excise taxes, may be collected on other items including gas guzzlers, vehicle sales, firearms, transportation tickets, tanning salons, and more.
South Dakota Gas Tax35th highest gas tax
The South Dakota excise tax on gasoline is 22.00¢ per gallon, lower then 70% of the other 50 states. South Dakota's excise tax on gasoline is ranked #35 out of the 50 states. The South Dakota gas tax is included in the pump price at all gas stations in South Dakota.
South Dakota Cigarette Tax23rd highest cigarette tax
The South Dakota excise tax on cigarettes is $1.53 per 20 cigarettes, higher then 54% of the other 50 states. South Dakota's excise tax on cigarettes is ranked #23 out of the 50 states. The South Dakota cigarette tax of $1.53 is applied to every 20 cigarettes sold (the size of an average pack of cigarettes). If a pack contains more then 20 cigarettes, a higher excise tax will be collected.
South Dakota Cellphone Tax13th highest cellphone tax
The average tax collected on cell phone plans in South Dakota is $12.02 per phone service plan, higher then 74% of the other 50 states. South Dakota's average cellphone tax is ranked #13 out of the 50 states. The South Dakota cellphone tax is already included in the service plan price you pay to your service provider, and may be listed as "Misc. taxes and Fees" or "Other" on your monthly bill.
South Dakota Car Tax
South Dakota collects a registration fee and a title fee on the sale or transfer of cars and motorcycles, which are essentially renamed excise taxes. Unlike standard excise taxes, however, the end consumer must pay the tax directly to the South Dakota Department of Transportation and receive documentation (registration and title papers) proving the fees were paid.
South Dakota Alcohol Excise Taxes - Liquor, Wine, and Beer
South Dakota collects special excise taxes on the sale of all types of alcohol, subdivided into specific taxes on wine, beer, and liquor (hard alcohol other then wine and beer). Alcohol taxes are sometimes collectively referred to as "sin taxes", which also include excise taxes on cigarettes, gambling, drugs, and certain other items.
Please note that the IRS also collects a federal excise taxes on alcoholic beverages, which are included separately from South Dakota's alcohol taxes in the final purchase price.
South Dakota Beer Tax22nd highest beer tax
The South Dakota excise tax on beer is $0.27 per gallon, higher then 56% of the other 50 states. South Dakota's beer excise tax is ranked #22 out of the 50 states. The South Dakota beer tax is already added to the purchase price of all beer bought in South Dakota, whether in kegs, bottles, or cans.
South Dakota Wine Tax15th highest wine tax
The South Dakota excise tax on Wine is $1.27 per gallon, higher then 70% of the other 50 states. South Dakota's excise tax on wine is ranked #15 out of the 50 states. An additional 2% wholesale tax applies to the sale of wine or spirits in South Dakota. The South Dakota wine tax is already added to the purchase price of all wine bought in South Dakota.
South Dakota Liquor Tax31st highest liquor tax
The South Dakota excise tax on liquor is $4.63 per gallon, lower then 62% of the other 50 states. South Dakota's excise tax on Spirits is ranked #31 out of the 50 states. An additional 2% wholesale tax applies to the sale of wine or spirits in South Dakota. The South Dakota liquor tax applies to all hard alcohol (alchoholic beverages other then beer and wine), and is already included in the purchase price by the retailer.
South Dakota Excise Tax Deductions & Refunds
Can I deduct my South Dakota Excise taxes?
Unlike the South Dakota Sales Tax, excise taxes are not generally deductible on South Dakota income tax returns or on your federal tax return. However, the IRS occasionally allows certain excise taxes to be deducted for certain tax years.
- Vehicle Tax Deduction
- South Dakota sales and excise taxes on cars or vehicles bought during 2009 may be deducted once from your federal tax return. You cannot deduct excise taxes for vehicles bought during other years.
- Phone Tax Deduction
- You may deduct excise taxes paid on long-distance phone calls between the years of 2003 and 2006 from your federal tax return.
Can I get a South Dakota Excise Tax Refund?
While sales tax refunds are available for goods that are purchased in South Dakota and exported, South Dakota excise taxes paid on goods are generally non-refundable. Incentives may exist allowing certain state of federal excise taxes to be refunded on goods bought for specific uses, but such incentives change frequently.
South Dakota Excise Tax - References
- Tax Foundation, State Excise Tax Collections Per Capita, Updated 2009
- Tax Foundation, Gasoline Excise Taxes, Updated 2012
- Tax Foundation, Cigarette Excise Taxes, Updated 2012
- Tax Foundation, Liquor Excise Taxes, Updated 2011
- Tax Foundation, Beer Excise Tax Rates, Updated 2012
- Tax Foundation, Average Wine Taxes, Updated 2011
- Tax Foundation, Average Cell Phone Taxes, Updated 2010