Tobacco tax shift burns up mosquito control money for cities, counties

Tobacco tax shift burns up mosquito control money for cities, counties

A move to put more tobacco tax money toward South Dakota’s day-to-day government expenses might mean more mosquito bites — and a greater risk of West Nile virus — after July. Gov. Larry Rhoden signed Senate Bill 54 into law on Friday. It reduces the amount of yearly tobacco tax revenue used to help people quit and avoid smoking from $5 million to $2 million. The rest of the money raised annually by the tax — more than $40 million, typically — go…

The new tax on vaping devices and nicotine pouches has been in effect since April 1, 2025. The objective of this tax is to align their taxation with that of tobacco and encourage a reduction in tobacco consumption. Specifically, this is Law 7/2024, which transposes European Directive 2022/2523 and establishes a new tax aimed at taxing liquids used in e-cigarettes and aligning the taxation of vaping with that of traditional tobacco, reducing its …