South Dakota Increase Taxes on Tobacco, Initiative 2 (2006)

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The South Dakota Increase Taxes on Tobacco Initiative, also known as Initiative 2, was on the November 7, 2006 ballot in South Dakota as an initiated state statute, where it was approved. The measure increased taxation on tobacco products by $1.00 on boxes of 20 cigarettes, $1.25 on boxes of 25 cigarettes and from 10 to 35 percent on the wholesale price. The measure provided that up to $30 million of the revenue would be deposited into the state general fund, the next $5 million would be dedicated to the tobacco prevention and reduction trust fund and any revenue greater than $35 million would be divided among the property tax reduction fund, education enhancement fund and the healthcare trust fund.[1][2]

Election results

South Dakota Initiative 2 (2006)
Approveda Yes 202,779 60.80%

Election results via: South Dakota Political Almanac, South Dakota Constitutional Amendments, Initiatives and Referendums 1970-2010

Text of measure

The text of the measure can be read here.


  • The Tax Tobacco Coalition

Reasons for supporting the measure included: the creation of additional tax revenue, preventing children from taking up smoking, and to encourage adults to quit smoking.[3]

Campaign contributions

Donors to the campaign for the measure:[4]

  • Initiated Measure No 2 Tax Tobacco Save Lives Save Money: $423,380
  • Pro Total: $423,380


Reasons for not supporting the measure included: it could create a black market for tobacco suppliers, encourage South Dakotans to cross the border to buy tobacco in other states, the statistics upon which the ballot measure is based include Native American reservations where the tax would not apply thereby skewing the numbers, and that it could create a need for additional law enforcement.[5]

Campaign contributions

Donors to the campaign against the measure:[4]

Top 5 contributors:

Donor Amount
South Dakota Coalition for Responsible Taxation $141,980
Philip Morris USA Stop Measure 2 Committee $65,402
Americans for Prosperity $19,500
RJ Reynolds Tobacco Company $2,797
National Taxpayers Union Ballot Committee $354
Total $230,034

See also

Suggest a link

External links


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