64:44:01:02.  Minimum price on cigarettes. The distributor shall apply the following formulas to establish the minimum price on all brands of cigarettes the distributor sells in this state:

          (1)  The basic cost to the distributor is the manufacturer's invoice price, less available manufacturer's discounts, plus the state cigarette excise tax;

          (2)  The distributor may not sell cigarettes for less than four percent above their basic cost if cigarettes are sold to retailers at the distributor's warehouse;

          (3)  If cigarettes are delivered to retailers, an additional one and one-half percent for cartage shall be added to the basic cost.

          Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 38 SDR 214, effective June 21, 2012.

          General Authority: SDCL 10-50-60, 37-10-26.

          Law Implemented: SDCL 37-10-5, 37-10-10.