Note: This section summarizes the temporary changes implemented due to the coronavirus pandemic that are of interest to interstate suppliers. The South Dakota governor issued Executive Order 2020-08 on March 23, 2020, in which she encouraged South Dakota retailers, specifically including bars, restaurants, breweries, cafes, and casinos, to offer take-out, delivery, drive-through, and curbside services. Subsequently, the South Dakota Department of Revenue created a COVID-19 FAQ page on which the following information is available: The only licensees that may deliver alcohol outside of the licensed premises are off-sale package liquor licensees (PL) that also have an off-sale delivery license (PD). The following licensees may sell the alcohol they are authorized to sell for off-premises consumption: On/Off-Sale Malt Beverage and South[…]
Retailers may offer loyalty and reward programs to retail consumers. Participation in these programs by manufacturers or wholesalers of alcoholic beverages is not permitted. All costs and expenses related to retail loyalty and reward programs must be borne entirely by the retailer. Any redemption of loyalty or reward program benefits or proceeds must comply with the provisions of SDCL 35-4-129, which prohibit sales below cost. [SD Regulations, Article 64:75, Chapter 64:75:04, Section 64:75:04:14.02.]
Department of Revenue Special Taxes Division 445 East Capitol Avenue Pierre, South Dakota 57501-3185 605-773-3311 (phone) 605-773-6729 (fax) http://dor.sd.gov/Taxes/Special_Taxes/ Links for Further Research SD Alcoholic Beverage Control Statutes SD Alcoholic Beverage Control Regulations
15.16.1 Entertainment of Retailers South Dakota statutes and regulations are silent on this subject. Therefore, IRS guidelines and your company policy should apply. 15.16.2 Contests/Incentives for Retailers and Their Employees Prohibited. Refer to Subsection 15.16.4 below. 15.16.3 Gifts to Retailers It is prohibited to directly or indirectly induce or seek to induce any retail licensee to purchase alcoholic beverages by offering or giving the retail licensee, or to any officer, employee or representative of the retail licensee, a bonus, premium, gift, compensation or any other concession of financial value, whether in the form of money or some other manner. [SD Regulations, Article 64:75, Chapter 64:75:04, Section 64:75:04:09.] Note: Provisions pertaining to malt beverages are similar and can be found at Article[…]
A wholesaler, distributor or solicitor may rotate the alcoholic beverages that they sell, provided products purchased by the retail licensee from other industry members are not altered or disturbed. The setting or resetting of all or part of an alcoholic beverage retail licensed premises is permitted, if written notice is given to each wholesaler serving the retail licensee at least forty-eight (48) hours prior to the set or reset. Shelf stocking is prohibited. [SD Regulations, Article 64:75, Chapter 64:75:04, Section 64:75:04:14.] Note: Guidelines for malt beverages are slightly different. If this is an issue, refer to Article 64:75, Chapter 64:75:08, Section 64:75:08:10, of South Dakota regulations for specific details.