<p>South Dakota Senate Bill 194 has been introduced in the legislature, proposing to raise the Other Tobacco Products (OTP) tax from 35% to 45%.&nbsp;</p>
<p>This tax hike would have significant negative consequences for South Dakota’s small businesses and premium cigar consumers. Higher taxes on premium cigars would drive customers to lower-cost out-of-state or online retailers, reducing in-state purchases and ultimately decreasing tax revenue for South Dakota. This decline in local sales would place added pressure on small business retailers, making it harder for them to stay afloat and potentially leading to job losses.</p>
<p>Take action now—urge your representatives to oppose Senate Bill 194 and protect South Dakota’s small businesses and economy.</p>
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As a premium cigar consumer and resident of South Dakota, I am writing to urge you to oppose Senate Bill 194, which seeks to increase the Other Tobacco Products (OTP) tax from 35% to 45%.

This proposed tax hike would have significant negative consequences for small businesses, premium cigar consumers, and South Dakota’s local economy. Premium cigars are not mass-market products but handcrafted, artisan items enjoyed infrequently and responsibly by adults. Applying such a tax increase to premium cigars unfairly penalizes both consumers and local small businesses without addressing any meaningful public policy concerns, such as youth access or public health.

Additionally, higher taxes on premium cigars would drive many consumers to lower-cost out-of-state or online retailers, reducing local purchases and ultimately decreasing state tax revenue. This decline in sales would place financial pressure on small businesses, making it harder for them to stay afloat and potentially leading to job losses. 

I urge you to stand with South Dakota’s small businesses, support fair taxation, and preserve responsible consumer choice by voting NO on Senate Bill 194. Protect our economy, local jobs, and the premium cigar industry from the harmful impact of this unfair tax increase.

Thank you for your time and consideration. I trust you will support South Dakota’s small businesses and responsible adult consumers.

Oppose OTP Tax Increase

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Dear Office Holder (names will be automatically added on each email),