New Underwood Cannabis Guide: Box Elder, South Dakota

Box Elder exists because of Ellsworth Air Force Base, and the city's current growth spurt exists because of the B-21 Raider program bringing construction, personnel and housing demand to the 28th Bomb Wing. A city of roughly 12,000 has been building new commercial and residential development at a pace unusual for western South Dakota, with the Liberty Boulevard corridor as the visible center of it.

That creates the sharpest legal split of any city in this guide. The base is federal property where cannabis is entirely prohibited, and any service member falls under the Uniform Code of Military Justice regardless of holding a South Dakota registry card, which they cannot lawfully use in any case. Civilian contractors on base and anyone in a federally regulated role face the same practical reality. The cardholders here are the civilian residents, the retirees and the families outside that structure.

Retail and production both sit on the commercial side of town. The state list dated August 27, 2026 gives Box Elder one dispensary certificate under BHCC operating as Dakota Green Dispensary, plus Genesis Farms manufacturing and cultivation certificates, which makes this small city a production node for the largest retail operator in the state. The Liberty Boulevard and Elk Vale Road corridors carry the commercial traffic, and a store on either corridor sits where Douglas district families and Rapid Valley commuters pass every day.

South Dakota is a medical-card state with an unusually stubborn history. On the same November 2020 night that 69.9 percent of voters approved Initiated Measure 26 to create a medical program, 54.2 percent also approved Constitutional Amendment A to legalize adult use. The Supreme Court struck Amendment A down in November 2021 for violating the single-subject rule, and the medical program survived alone. Legalization has gone back to voters twice since: Initiated Measure 27 lost in 2022, and Initiated Measure 29 lost on November 5, 2024 by 44.46 percent to 55.54 percent. No cannabis question appears on the November 3, 2026 ballot.

What exists instead is a working, growing medical market. The Department of Health runs the program under SDCL 34-20G and the rules at ARSD 44:90, and its August 27, 2026 establishment list counts 62 licensed dispensaries in 28 communities, along with 30 cultivators, 14 manufacturers and a single testing lab in Flandreau. Approved patient cards hit 19,821 on September 2, 2026, up from 11,275 in March 2025. Every sale happens face to face: you hand over your registry card and a photo ID, the budtender checks you against the state tracking system, and your 3-ounce, 14-day rolling limit updates on the spot.

Prices here are set by a small market, not by tax policy. South Dakota levies no cannabis excise tax whatsoever. Dispensary sales carry only the ordinary 4.2 percent state sales tax, cut from 4.5 percent under a 2023 law and due to snap back July 1, 2027, plus municipal sales tax of up to 2 percent.

Two sessions reshaped the edges of the market. In 2025 Gov. Larry Rhoden signed SB 83, dropping first and second ingestion charges from a Class 5 felony to a Class 1 misdemeanor. In February 2026 the Senate Health and Human Services Committee killed SB 181, a repeal trigger tied to federal rescheduling, and SB 194, a potency cap. Rhoden then signed SB 39, ending state hemp farm licensing while leaving the 2024 ban on converted hemp cannabinoids intact.

Every product sold legally in South Dakota is grown, made and tested inside South Dakota, so the names on the shelf are local. Genesis Farms is the largest retail operator, appearing on the DOH list in Aberdeen, Brookings, Huron, Mitchell, Pierre, Rapid City, Sioux Falls, Spearfish, Watertown and Yankton. Puffy's runs multiple stores in Rapid City and Sturgis. Dakota Herb operates in Aberdeen, Huron, Sioux Falls and Vermillion, and also holds manufacturing and cultivation certificates. The Flower Shop is licensed in Aberdeen, Brookings, Mitchell and Sioux Falls, and Royzzz appears in Sioux Falls, Watertown, North Sioux City and Yankton. Unity Rd in Hartford was the first state-licensed dispensary in South Dakota when it opened on July 27, 2022. Native Nations Cannabis, run by the Flandreau Santee Sioux Tribe at the Royal River Casino, opened July 1, 2021 and operates under tribal law rather than the state program.

The number that matters in 2026 is 19,821 approved patient cards, up roughly 76 percent from 11,275 in March 2025. That growth is happening while the program is under annual attack in Pierre: 2025 and 2026 both brought repeal bills, and both died. February 2026 saw the Senate Health and Human Services Committee reject SB 181, a repeal trigger tied to federal rescheduling, and SB 194, a potency cap that would have limited oils to 5 percent THC. Meanwhile SB 39 pulled the state out of hemp farm licensing in March 2026, leaving that job to USDA. With no cannabis measure on the November 3, 2026 ballot and Amendment L proposing a 60 percent threshold for future constitutional amendments, the next legalization attempt looks like a 2028 fight at the earliest. For dispensary operators, the practical takeaway is that the customer pool is a registry list that grows a few hundred names a month, and those patients search by town before they search by brand.