___________________ moved that HB 1041 be amended as follows:
Section 2. That chapter 10-50 be amended by adding thereto a NEW SECTION to read as
follows:
Section 3. That chapter 10-50 be amended by adding thereto a NEW SECTION to read as
follows:
Section 4. That § 10-50-4 be repealed.
10-50-4. The payment of the tax imposed by § 10-50-3 shall be evidenced by the affixing of
stamps to the packages containing the cigarettes as provided by this chapter. However, for cigarettes
offered by manufacturers for gratis distribution as samples, the stamps are not required to be affixed
to sample packages if the manufacturer of the cigarette reports and pays the tax directly to the state
tax authority.
Section 5. That § 10-50-5 be repealed.
Section 6. That § 10-50-6 be amended to read as follows:
10-50-6. Any cigarette on which a tax has been paid, the payment being evidenced by the
affixing of the stamp, is not subject to a further tax under this chapter. However, any person, who
possesses two thousand or more cigarettes that do not bear a tax stamp indicating that the South
Dakota cigarette tax has not been paid, shall pay the tax imposed pursuant to § 10-50-3 plus a
penalty equal to ten percent of the total tax due.
Section 7. That § 10-50-18 be repealed.
10-50-18. The secretary of revenue and regulation shall secure stamps, of the design and
denomination as the secretary prescribes, suitable to be affixed to packages of cigarettes as evidence
of the payment of the tax imposed by this chapter. The secretary shall sell the stamps to licensed
distributors at a discount of two percent of their face value and to no other person.
Section 8. That § 10-50-19 be repealed.
10-50-19. The secretary of revenue and regulation may, in his discretion, permit a licensed
distributor to pay for such stamps within thirty days after the date of purchase, provided a bond
satisfactory to the secretary of revenue and regulation in an amount not less than the sale price of
such stamps shall have been filed with the secretary conditioned upon payment for such stamps or
upon a satisfactory depository agreement between the secretary of revenue and regulation and such
licensed distributor, provided for a deposit of money or security in a depository to be named, such
agreement conditioned upon payment for such stamps.
Section 9. That § 10-50-20 be repealed.
10-50-20. No distributor shall sell or transfer any stamps issued under the provisions of this
chapter. The secretary of revenue and regulation shall redeem any unused, uncanceled stamps
presented by any licensed distributor at a price equal to ninety-five percent of their face value.
Section 10. That § 10-50-20.1 be amended to read as follows:
10-50-20.1. Whenever If a distributor destroys cigarettes accidentally or intentionally because
of staleness or other unfitness for sale which have been stamped as provided in tax has been paid
pursuant to this chapter, a credit or refund shall be given to the distributor at a price equal to
ninety-five percent of the face value of the stamps upon proof of loss presented to the department
within one year after the destruction of the stamped cigarettes if loss is established to the satisfaction
of the Department of Revenue and Regulation.
Section 11. That § 10-50-21 be amended to read as follows:
10-50-21. Any person who forges a counterfeit of any stamp prescribed by the secretary of
revenue and regulation under the provisions of this chapter, or who uses a counterfeited stamp, or
who knowingly possesses a counterfeited stamp, or who uses more than once any stamp required by
this chapter, for the purpose of evading evades the tax thereby imposed, by this chapter is guilty of
a Class 4 felony.
Section 12. That § 10-50-25 be repealed.
10-50-25. If the secretary of revenue and regulation finds that the collection of the tax imposed
by this chapter would be facilitated thereby, the secretary may authorize any person, resident or
located outside this state, engaged in the business of selling and shipping cigarettes into this state
and purchasing at least seventy-five percent of the cigarettes from the manufacturers thereof, and
who is a resident of any state authorizing by law the licensing of nonresidents, including residents
of this state, to distribute cigarettes therein, upon complying with the requirements of the secretary
of revenue and regulation, to affix or cause to be affixed the stamps required by this chapter on
behalf of the purchasers of the cigarettes, who would otherwise be taxable therefor. The secretary
of revenue and regulation may sell the stamps to such person as hereinbefore provided.
Section 13. That § 10-50-26 be repealed.
10-50-26. The secretary of revenue and regulation shall require bond of such nonresident person,
satisfactory to the secretary of revenue and regulation, in an amount not to exceed ten thousand
dollars, which said bond shall be filed with the secretary of revenue and regulation conditioned upon
the payment of the tax in compliance with such other requirements as the secretary of revenue and
regulation may specify. Such bond shall be issued by a surety company licensed to do business in
this state, and shall be in full force and effect for a period of one year and a day after the expiration
of the bond, and until or unless a certificate be issued by the secretary of revenue and regulation to
the effect that all taxes due to the state under this chapter have been paid. In the discretion of the
secretary of revenue and regulation, a depository agreement may be accepted by the secretary of
revenue and regulation in lieu of such surety bond, which said depository agreement shall be upon
the same conditions as the bond above referred to, and shall be in full force and effect for one year
and a day and until or unless a certificate be issued by the secretary of revenue and regulation to the
effect that all taxes due to the state under this chapter have been paid.
Section 14. That § 10-50-27 be repealed.
10-50-27. Such nonresident person shall agree to submit his books, accounts, and records to
examination during reasonable business hours by the secretary of revenue and regulation or his duly
authorized agent.
Section 15. That § 10-50-28 be repealed.
10-50-28. Each such nonresident person, other than a foreign corporation which has complied
with the provisions of the statutes of this state relative to foreign corporations, shall, in writing,
appoint the secretary of state and his successors in office to be his attorney, such appointment to be
made, acknowledged, and filed in the manner prescribed in the statutes relative to foreign
corporations. Service upon said attorney shall be sufficient service upon any such nonresident
person, whether a foreign corporation which has complied with the provisions of the statutes relating
to foreign corporations or not, and may be made by leaving a true copy of the process with the
secretary of state or at his office. When legal process against any such nonresident person shall be
served upon the secretary of state he shall notify such nonresident person in the manner specified in
the statutes relating to service of process upon foreign corporations licensed to do business in this
state, and shall collect the fee as therein specified.
Section 16. That § 10-50-29 be repealed.
10-50-29. Any person complying with the provisions of §§ 10-50-25 to 10-50-28, inclusive, shall
thereupon become a licensed distributor within the meaning of this chapter and shall be subject to
all provisions of this chapter applicable to licensed distributors.
Section 17. That § 10-50-30 be repealed.
10-50-30. Each distributor shall affix or cause to be affixed, in the manner as the secretary of
revenue and regulation may specify in rules promulgated pursuant to chapter 1-26, to each individual
package of cigarettes, to cartons containing more than one individual package of three, four, or five
cigarettes sold or distributed by such distributor, stamps of the proper denomination, as required by
this chapter. The stamps shall be affixed by a distributor before the cigarettes are transferred out of
the distributor's premises, or in lieu thereof the amount of the tax due shall be entered on the invoice
and stamps sufficient in denominations and amount shall accompany the invoice on every delivery
of cigarettes.
Section 18. That § 10-50-31 be repealed.
10-50-31. Each dealer upon opening any shipping package containing any unstamped taxable
articles for purposes of sale or delivery to consumers, shall immediately affix the tax stamps required
by this chapter.
Section 19. That § 10-50-32 be amended to read as follows:
10-50-32. No person, other than a licensed distributor, may sell, offer for sale, display for sale,
or possess with intent to sell, advertise for sale, ship or cause to be shipped, or possess with intent
to deliver to another person, any cigarettes which do not bear stamps evidencing the payment of the
tax imposed by this chapter has not been paid.
Section 20. That § 10-50-33 be repealed.
10-50-33. The display or possession, except in original unopened shipping package, container,
or case, of cigarettes by any dealers unless fully stamped as required by this chapter shall constitute
prima facie evidence of possession with intent to sell the same.
Section 21. That § 10-50-34 be amended to read as follows:
10-50-34. The secretary of revenue and regulation and inspectors of the Department of Revenue
and Regulation are charged with the duty of enforcing shall enforce the provisions of this chapter,
and are given have the power of peace officers and authorized and empowered to may arrest any
violator of the provisions of this chapter, to enter complaint and may enter complaints before any
court of competent jurisdiction and to seize without formal warrant and use as evidence any forged,
counterfeited, spurious, or altered license or stamp found in possession of any person in violation
of this chapter.
10-50-35. Any cigarettes found at any place in this state without stamps affixed thereto the tax
being paid as required by this chapter unless the cigarettes are in the possession of a licensed
distributor or wholesaler in the original unopened shipping package or unless they the cigarettes are
in a course of transit from without this state and consigned to a licensed distributor or a licensed
wholesaler, are declared to be contraband goods and may be seized by the secretary, the secretary's
agents, or employees, or by any law enforcement of this state if directed by the secretary to do so,
without a warrant.
Section 23. That § 10-50-36 be amended to read as follows:
10-50-36. Any cigarettes seized under the provisions of this chapter shall be confiscated and
forfeited to the state, and the. The secretary shall sell such the confiscated property cigarettes to a
licensed dealer or distributor to the best advantage to the state. The proceeds from such the sale shall
be forthwith remitted to the secretary of revenue and regulation as part of the income for the
enforcement of this chapter. Such sale by the state shall does not relieve the purchaser from paying
the tax and stamping the articles so sold to him, as provided in this chapter otherwise provided.
Section 24. That § 10-50-37 be repealed.
10-50-37. Nothing in § 10-50-35 or 10-50-36 shall be construed to require the secretary of
revenue and regulation to confiscate unstamped cigarettes when he shall have reason to believe that
the owner thereof is not willfully or intentionally evading the tax imposed by this chapter.
Section 25. That § 10-50-39 be amended to read as follows:
10-50-39. On or before the fifteenth day of each month each distributor shall render to the
secretary of revenue and regulation a verified report of all sales and deliveries on forms prescribed
by the secretary, showing the quantity of cigarettes sold or delivered in this state during the preceding
calendar month, the amount of stamps purchased and used during such period of time and the
amount of stamps on hand at the end of the reporting period and such other information as the
secretary shall require requires.
Section 26. That § 10-50-58 be repealed.
10-50-58. There is established in the state treasury a special revenue fund to be known as the
cigarette stamp purchasing fund.
Section 27. That § 10-50-59 be repealed.
10-50-59. In addition to the taxes and fees imposed by this chapter, the secretary of revenue and
regulation may recover the cost of any stamps or other indicia that are required to be affixed to
packages of cigarettes from those licensees affixing said stamps or indicia. The amount so recovered
shall be deposited into the cigarette stamp purchasing fund and all money in the fund is continuously
appropriated to the Department of Revenue and Regulation to be used to purchase stamps or other
indicia.
Section 28. That § 10-50-60 be amended to read as follows:
10-50-80. No later than twenty days after the end of each calendar quarter, and more frequently
if so directed by the secretary, each distributor and wholesaler shall submit information concerning
each nonparticipating manufacturer as the secretary requires to facilitate compliance with §§ 10-50-72 to 10-50-92, inclusive, including, a list by brand family of the total number of cigarettes or, in the
case of roll-your-own, the equivalent stick count, for which the distributor or wholesaler affixed
cigarette tax stamps to a cigarette package, or otherwise paid the cigarette tax due during the
previous calendar quarter. The distributor or wholesaler shall maintain and make available to the
secretary all invoices and documentation of sales of all nonparticipating manufacturer cigarettes and
any other information relied upon in reporting to the secretary for a period of six years. The secretary
may, in addition to any other provision of law, impose and collect a monetary penalty in an amount
not to exceed five hundred dollars per day, for the failure of a distributor or wholesaler to timely or
accurately comply with this section. Any monetary penalty collected pursuant to this section shall
be deposited in the state general fund.
Section 30. That § 10-50-82 be amended to read as follows:
10-50-82. No distributor or wholesaler or other person may:
cigarettes or five thousand dollars for each violation of this section by a distributor or wholesaler.
Any monetary penalty collected pursuant to this section shall be deposited in the state general fund. "