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

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Initiated Measure 2 was on the November 7, 2006 in South Dakota as an initiated state statute, where it was approved.[1]

Election results

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

Election Results via: South Dakota Secretary of State


It was meant to increase the taxes on tobacco products and to dedicate the revenues generated by the higher tax to the state general fund. If the higher tax generates revenue in excess of $30 million dollars, the next $5 million dollars would be dedicated to a fund for the prevention and reduction of tobacco use. Any revenue in excess of $35 million dollars would be divided among the property tax reduction fund, the education enhancement trust fund, and the health care trust fund.

The tax on a 20 stick cigarette package would be raised by $1.00; the tax on a 25 stick cigarette package would be raised by $1.25. The tax on all other tobacco products such as cigars, roll-your-own, and chewing tobacco, would increase from 10 percent to 35 percent of the wholesale price.[2]


  • The Tax Tobacco Coalition

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


Reasons for not supporting the measure include: 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.[4]

Campaign finance

Donors to the campaign for the measure:[5]

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

Donors to the campaign against the measure:

  • 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
  • Overall Total: $653,414

See also

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