The wholesale purchase price of any tobacco product that is typically subject to the wholesale tax on tobacco products pursuant to SDCL 10-50-61 may be deducted from the Monthly OTP tax return form if the tobacco product is subsequently used to manufacture cigarettes in a roll-your-own machine at a retail establishment. This provision only applies if the cigarettes produced were taxed pursuant to SDCL 10-50-3 and payment of the tax has been evidenced by the affixing of tax stamps pursuant to SDCL 10-50-4.

Source: 38 SDR 214, effective June 21, 2012.

General Authority: SDCL 10-50-60(5)(6) , 37-10-26(3).

Law Implemented: SDCL 10-50-105.