Cigarettes and Tobacco News

Nov 26, 2007 -- The state will soon be issuing a purple cigarette-tax stamp with additional security features.

Beginning in the next few weeks, the Department of Revenue and Regulation's Property and Special Taxes Division will be changing from the current pink excise-tax stamps to a new purple version, which offers increased security features, according to a news release. The new stamps cost just a fraction more than the current ones, but the added security makes them worth it, Property and Special Taxes Division Director Michael Kenyon said.

"The new stamps have invisible security features, which can be verified with special scanning equipment," Kenyon said. "Those features make it easy for the department to spot any invalid stamps, which is a definite benefit for both distributors and the department. The new tax stamps will help to ensure that the packs of cigarettes sold in South Dakota are properly stamped and the tax is being paid as it should be."

Kenyon says the department had a reason for choosing purple: None of the states surrounding South Dakota use purple for their cigarette-tax stamps.

The cigarette-excise-tax stamps are applied to packs of cigarettes by cigarette distributors before any sale to retailers for resale. No pack of cigarettes can be legally sold in South Dakota without a tax stamp. The new purple tax stamps will begin showing up on packs of cigarettes in the state as soon as the current supply of pink stamps is depleted.