Considering becoming a vape vending machine host in South Dakota? Familiarize yourself with the current state laws to ensure compliance and successful operations. Here's a quick breakdown of current state regulations for vapor products, vape machines, and sales.Whether you're a retailer, entrepreneur, or operator, understanding these regulations is essential not only for compliance but also for safeguarding your investment. Below is a detailed guide that breaks down the current rules, requirements, and best practices for operating a vape vending machine in South Dakota.

Placement Restrictions

South Dakota restricts the location of tobacco product vending machines, including those that vend vape or nicotine products, under S.D. Codified Laws § 34-46-2:

“No person may sell or distribute a tobacco product through a vending machine unless the vending machine is located in a place where persons under the age of twenty-one years are not permitted to enter.”

This effectively limits placement to 21+ locations, such as bars or adult-only establishments.

Licensing and Permitting Requirements

To operate a vape vending machine or sell vapor products in South Dakota:

• You must register as a tobacco retailer with the South Dakota Department of Revenue (SDDOR).
• There is no separate vending machine license, but all machines must comply with restrictions under the retail license.

Under S.D. Codified Laws § 10-50-9.1, a license is required for any person engaging in the business of selling tobacco products, which includes vapor products and nicotine pouches.

Applicable Taxes and Fees

Sales Tax:

• Standard South Dakota sales tax (currently 4.5%) applies to all retail sales of vapor products, including those from vending machines.

Excise Tax:

• South Dakota levies an excise tax on vapor products at a rate of $0.05 per milliliter of liquid nicotine, pursuant to S.D. Codified Laws § 10-50-61.
• Products must be sourced from licensed wholesalers and tax-paid at the time of purchase or declared upon importation.

Relevant Regulatory Agencies

The primary agencies overseeing vape vending operations include:

• South Dakota Department of Revenue (SDDOR)
  • Handles sales tax registration, excise tax collection, and retail licensing.
  • Website: https://dor.sd.gov
• South Dakota Department of Health (DOH)
  • May inspect establishments for youth access compliance.
  • Enforces signage and underage sales prohibitions.

Municipal or City-Specific Ordinances

South Dakota law does not currently allow municipalities to override state law with stricter regulations for the sale, distribution, or licensing of tobacco or vapor products, as preemption applies under S.D. Codified Laws § 34-46-6.

However, local zoning or business licensing ordinances may affect where vending machines can be installed, especially in certain jurisdictions like Sioux Falls or Rapid City. It is recommended to contact the local city hall or county clerk’s office for:

• Local business permit requirements
• Building and zoning restrictions on vending equipment

Additional Legal and Compliance Considerations

• ID Verification: Per S.D. Codified Laws § 34-46-2, sales of vapor or nicotine products to anyone under 21 are prohibited. This includes through vending machines unless the machine is in a 21+ location.
• Product Packaging: Must comply with federal labeling laws including child-resistant packaging under 16 C.F.R. § 1700.15.
• Signage: Retailers, including vending operators, must post signage stating that sales to persons under 21 are prohibited.

Disclaimer: This page is intended for informational purposes only and should not be considered legal advice. Consult official South Dakota government resources for the most current regulations.