Minnesota Legislature
HF 1487
as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2013 02:55pm
Current Version - as introduced
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A bill for an act
relating to tobacco taxes; updating the definition of tobacco products and
adding a definition for moist snuff; increasing the fee imposed on the sale of
nonsettlement cigarettes; amending Minnesota Statutes 2012, sections 297F.01,
subdivision 19, by adding subdivisions; 297F.05, subdivisions 3, 4; 297F.09,
subdivisions 2, 3; 297F.24, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 297F.01, is amended by adding a
subdivision to read:
new text begin Subd. 9b. new text end
new text begin Little cigar. new text end
new text begin
"Little cigar" means any roll for smoking made in whole
or in part of tobacco if the product is wrapped in a substance containing tobacco other
than natural leaf tobacco, uses an integrated cellulose acetate or other similar filter, and
weighs not more than four and one-half pounds per thousand.
new text end
Sec. 2.
Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision
to read:
new text begin Subd. 10b. new text end
new text begin Moist snuff. new text end
new text begin
"Moist snuff" means finely cut, ground, or powdered
tobacco that is not intended to be smoked, but shall not include finely cut, ground, or
powdered tobacco that is intended to be placed in the nasal cavity.
new text end
Sec. 3.
Minnesota Statutes 2012, section 297F.01, subdivision 19, is amended to read:
Subd. 19.
Tobacco products.
"Tobacco products" means any product containing,
made, or derived from tobacco that is intended for human consumption, whether chewed,
smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means,
or any component, part, or accessory of a tobacco product, including, but not limited to,
cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready
rubbed, and other smoking tobacco; snuffnew text begin , including moist snuffnew text end ; snuff flour; cavendish;
plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings,
cuttings and sweepings of tobacco, and other kinds and forms of tobacco; but does not
include cigarettes as defined in this section. Tobacco products excludes any tobacco
product that has been approved by the United States Food and Drug Administration for
sale as a tobacco cessation product, as a tobacco dependence product, or for other medical
purposes, and is being marketed and sold solely for such an approved purpose.
Sec. 4.
Minnesota Statutes 2012, section 297F.05, subdivision 3, is amended to read:
Subd. 3.
Rates; tobacco products.
new text begin (a) new text end A tax is imposed upon all tobacco products
in this state and upon any person engaged in business as a distributor, at the deleted text begin ratedeleted text end new text begin ratesnew text end ofnew text begin :
new text end
new text begin (1)new text end 35 percent of the wholesale sales price of the tobacco productsdeleted text begin .deleted text end new text begin other than moist
snuff and little cigars;
new text end
new text begin
(2) for moist snuff, at the rate of $....... per ounce, and a proportionate rate for any
other quantity or fractional part in excess of 1.2 ounces. The tax imposed on a can or
package of moist snuff that weighs less than 1.2 ounces shall be equal to the amount of tax
imposed on a can or package of moist snuff that weighs 1.2 ounces; and
new text end
new text begin
(3) for little cigars, the tax on each little cigar shall be equal to the tax imposed per
cigarette under subdivision 1, clause (1); section 256.9658, subdivision 3, paragraph (a),
clause (1); and any successor provision taxing cigarettes.
new text end
new text begin (b)new text end The tax is imposed at the time the distributor:
(1) brings, or causes to be brought, into this state from outside the state tobacco
products for sale;
(2) makes, manufactures, or fabricates tobacco products in this state for sale in
this state; or
(3) ships or transports tobacco products to retailers in this state, to be sold by those
retailers.
Sec. 5.
Minnesota Statutes 2012, section 297F.05, subdivision 4, is amended to read:
Subd. 4.
Use tax; tobacco products.
A tax is imposed upon the use or storage by
consumers of tobacco products in this state, and upon such consumers, at the deleted text begin ratedeleted text end new text begin ratesnew text end ofnew text begin :
new text end
new text begin (1)new text end 35 percent of the cost to the consumer of the tobacco productsdeleted text begin .deleted text end new text begin other than moist
snuff and little cigars;
new text end
new text begin
(2) for moist snuff, at the rate of $....... per ounce, and a proportionate rate for any
other quantity or fractional part in excess of 1.2 ounces. The tax imposed on a can or
package of moist snuff that weighs less than 1.2 ounces shall be equal to the amount of tax
imposed on a can or package of moist snuff that weighs 1.2 ounces; and
new text end
new text begin
(3) for little cigars, the tax on each little cigar shall be equal to the tax imposed per
cigarette under subdivision 1, clause (1); section 256.9658, subdivision 3, paragraph (a),
clause (1); and any successor provision taxing cigarettes.
new text end
Sec. 6.
Minnesota Statutes 2012, section 297F.09, subdivision 2, is amended to read:
Subd. 2.
Monthly return; tobacco products distributor.
On or before the 18th
day of each calendar month, a distributor with a place of business in this state shall file
a return with the commissioner showing the quantity and wholesale sales price of each
tobacco productnew text begin , including the number of ounces of moist snuff tobacconew text end :
(1) brought, or caused to be brought, into this state for sale; and
(2) made, manufactured, or fabricated in this state for sale in this state, during the
preceding calendar month.
Every licensed distributor outside this state shall in like manner file a return showing
the quantity and wholesale sales price of each tobacco productnew text begin , including the number of
ounces of moist snuff tobacco,new text end shipped or transported to retailers in this state to be sold by
those retailers, during the preceding calendar month. Returns must be made in the form
and manner prescribed by the commissioner and must contain any other information
required by the commissioner. The return must be accompanied by a remittance for the full
tax liability shown. For distributors subject to the accelerated tax payment requirements in
subdivision 10, the return for the May liability is due two business days before June 30th
of the year and the return for the June liability is due on or before August 18th of the year.
Sec. 7.
Minnesota Statutes 2012, section 297F.09, subdivision 3, is amended to read:
Subd. 3.
Use tax return; cigarette or tobacco products consumer.
On or before
the 18th day of each calendar month, a consumer who, during the preceding calendar
month, has acquired title to or possession of cigarettes or tobacco products for use or
storage in this state, upon which cigarettes or tobacco products the tax imposed by
this chapter has not been paid, shall file a return with the commissioner showing the
quantity of cigarettes or tobacco productsnew text begin , including the number of ounces of moist snuff
tobacco,new text end so acquired. The return must be made in the form and manner prescribed by the
commissioner, and must contain any other information required by the commissioner. The
return must be accompanied by a remittance for the full unpaid tax liability shown by it.
Sec. 8.
Minnesota Statutes 2012, section 297F.24, subdivision 1, is amended to read:
Subdivision 1.
Fee imposed.
(a) A fee is imposed upon the sale of nonsettlement
cigarettes in this state, upon having nonsettlement cigarettes in possession in this state
with intent to sell, upon any person engaged in business as a distributor, and upon the
use or storage by consumers of nonsettlement cigarettes. The fee equals a rate of deleted text begin 1.75
deleted text end new text begin 2.75new text end cents per cigarette.
(b) The purpose of this fee is to:
(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that
are comparable to costs attributable to the use of the cigarettes;
(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's
policy of discouraging underage smoking by offering nonsettlement cigarettes at prices
substantially below the cigarettes of other manufacturers; and
(3) fund such other purposes as the legislature determines appropriate.
Sec. 9. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 8 are effective July 1, 2013.
new text end