Minnesota Legislature
HF 124
as introduced - 84th Legislature, 2005 1st Special Session (2005 - 2005) Posted on 12/15/2009 12:00am
Bill Text Versions
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| Introduction | Posted on 07/01/2005 |
Current Version - as introduced
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A bill for an act
relating to health care; imposing a tobacco use health
impact fee; establishing a health impact fund;
imposing a floor stocks fee; amending Minnesota
Statutes 2004, sections 297F.10, subdivision 1;
297F.185; 325D.32, subdivision 9; proposing coding for
new law in Minnesota Statutes, chapters 16A; 256.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin INTENT.
new text end
new text begin
In enacting this law, the legislature intends to make
available additional general fund resources to permit an
increase in appropriations of $241,000,000 for education and
$100,000,000 for health care.
new text end
Sec. 2.
new text begin
[16A.725] HEALTH IMPACT FUND AND FUND
REIMBURSEMENTS.
new text end
new text begin Subdivision 1. new text end
new text begin Health impact fund. new text end
new text begin
There is created in
the state treasury a health impact fund into which is deposited
all revenue from the health impact fee under section 256.9658
and any floor stocks fee enacted into law.
new text end
new text begin Subd. 2. new text end
new text begin Certified tobacco expenditures. new text end
new text begin
By April 30 of
each year, the commissioner of human services shall certify to
the commissioner of finance the state share, by fund, of tobacco
use attributable costs for the previous fiscal year in Minnesota
health care programs, including medical assistance, general
assistance medical care, and MinnesotaCare, or other applicable
expenditures.
new text end
new text begin Subd. 3.new text end
new text begin Fund reimbursements.new text end
new text begin (a) Each fiscal year, the
commissioner of finance shall first transfer from the health
impact fund to the general fund an amount sufficient to offset
the general fund cost of the certified expenditures under
subdivision 2 or the balance of the fund, whichever is less.
new text end
new text begin
(b) If any funds remain in the health impact fund after the
transfer in paragraph (a), the commissioner of finance shall
transfer to the health care access fund the amount sufficient to
offset the health care access fund cost of the certified
expenditures in subdivision 2, or the balance of the fund,
whichever is less.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2005.
new text end
Sec. 3.
new text begin
[256.9658] TOBACCO HEALTH IMPACT FEE.
new text end
new text begin Subdivision 1. new text end
new text begin Purpose. new text end
new text begin
A tobacco use health impact fee
is imposed on and collected from cigarette distributors and
tobacco products distributors to recover for the state health
costs related to or caused by tobacco use and to reduce tobacco
use, particularly by youths.
new text end
new text begin Subd. 2. new text end
new text begin Definitions. new text end
new text begin
The definitions under section
297F.01 apply to this section.
new text end
new text begin Subd. 3. new text end
new text begin Fee imposed. new text end
new text begin
(a) A fee is imposed upon the sale
of cigarettes in this state, upon having 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 cigarettes. The fee is imposed at the
following rates:
new text end
new text begin
(1) on cigarettes weighing not more than three pounds per
thousand, 37.5 mills on each cigarette; and
new text end
new text begin
(2) on cigarettes weighing more than three pounds per
thousand, 75 mills on each cigarette.
new text end
new text begin
(b) A fee is imposed upon all tobacco products in this
state and upon any person engaged in business as a distributor
in an amount equal to the liability for tax under section
297F.05, subdivision 3 or 4, multiplied by 1.86.
new text end
new text begin Subd. 4. new text end
new text begin Payment. new text end
new text begin
A distributor must pay the fee at the
same time and in the same manner as provided for payment of tax
under chapter 297F.
new text end
new text begin Subd. 5. new text end
new text begin Fee on use of unstamped cigarettes. new text end
new text begin
Any person,
other than a distributor, that purchases or possesses cigarettes
that have not been stamped and on which the fee imposed under
this section has not been paid is liable for the fee under this
section on the possession or use of those cigarettes.
new text end
new text begin Subd. 6. new text end
new text begin Administration. new text end
new text begin
The audit, assessment,
interest, appeal, refund, penalty, enforcement, administrative,
and collection provisions of chapters 270C and 297F apply to the
fee imposed under this section.
new text end
new text begin Subd. 7. new text end
new text begin Cigarette stamp. new text end
new text begin
(a) The stamp in section
297F.08 must be affixed to each package and is prima facie
evidence that the fee imposed by this section has been paid.
new text end
new text begin
(b) Notwithstanding any other provisions of this section,
the fee due on the return is based upon actual stamps purchased
during the reporting period.
new text end
new text begin Subd. 8. new text end
new text begin License revocation. new text end
new text begin
The commissioner of revenue
may revoke or suspend the license of a distributor for failure
to pay the fee or otherwise comply with the requirements under
this section. The provisions and procedures under section
297F.04 apply to a suspension or revocation under this
subdivision.
new text end
new text begin Subd. 9.new text end
new text begin Deposit of revenues.new text end
new text begin The commissioner of
revenue shall deposit the revenues from the fee under this
section in the health impact fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2005.
new text end
Sec. 4.
Minnesota Statutes 2004, section 297F.10,
subdivision 1, is amended to read:
Subdivision 1.
Tax and use tax on cigarettes.
Revenue
received from cigarette taxes, as well as related penalties,
interest, license fees, and miscellaneous sources of revenue
shall be deposited by the commissioner in the state treasury and
credited as follows:
(1) the revenue produced by deleted text begin 3.25 deleted text end new text begin 3.8 new text end mills of the tax on
cigarettes weighing not more than three pounds a thousand and
deleted text begin
6.5 deleted text end new text begin 7.6 new text end mills of the tax on cigarettes weighing more than three
pounds a thousand must be credited to the Academic Health Center
special revenue fund hereby created and is annually appropriated
to the Board of Regents at the University of Minnesota for
Academic Health Center funding at the University of Minnesota;
and
(2) the revenue produced by deleted text begin 1.25 deleted text end new text begin 1.45 new text end mills of the tax on
cigarettes weighing not more than three pounds a thousand and
deleted text begin
2.5 deleted text end new text begin 2.9 new text end mills of the tax on cigarettes weighing more than three
pounds a thousand must be credited to the medical education and
research costs account hereby created in the special revenue
fund and is annually appropriated to the commissioner of health
for distribution under section 62J.692, subdivision 4; and
(3) the balance of the revenues derived from taxes,
penalties, and interest (under this chapter) and from license
fees and miscellaneous sources of revenue shall be credited to
the general fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue
received on or after August 1, 2005.
new text end
Sec. 5.
Minnesota Statutes 2004, section 297F.185, is
amended to read:
297F.185 REVOCATION OF SALES AND USE TAX PERMITS.
new text begin
(a) new text end If a retailer purchases for resale from an unlicensed
seller more than 20,000 cigarettes or $500 or more worth of
tobacco products, the commissioner may revoke the person's sales
and use tax permit as provided in section 297A.86.
new text begin
(b) The commissioner may revoke a retailer's sales or use
permit as provided in section 297A.86 if the retailer, directly
or indirectly, purchases for resale cigarettes without the
proper stamp affixed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for violations
occurring on or after August 1, 2005.
new text end
Sec. 6.
Minnesota Statutes 2004, section 325D.32,
subdivision 9, is amended to read:
Subd. 9.
Basic cost of cigarettes.
"Basic cost of
cigarettes" means the gross invoice cost of cigarettes to the
wholesaler or retailer plus the full face value of any stamps
which may be required by any cigarette tax new text begin or fee new text end act of this
state, unless included by the manufacturer in the list price.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2005.
new text end
Sec. 7. new text begin FLOOR STOCKS FEE.
new text end
new text begin Subdivision 1. new text end
new text begin Cigarettes. new text end
new text begin
A floor stocks cigarette fee
is imposed on every person engaged in the business in this state
as a distributor, retailer, subjobber, vendor, manufacturer, or
manufacturer's representative of cigarettes, on the stamped
cigarettes and unaffixed stamps in the person's possession or
under the person's control at 12:01 a.m. on August 1, 2005. The
fee is imposed at the following rates:
new text end
new text begin
(1) on cigarettes weighing not more than three pounds per
thousand, 37.5 mills on each cigarette; and
new text end
new text begin
(2) on cigarettes weighing more than three pounds per
thousand, 75 mills on each cigarette.
new text end
new text begin
Each distributor, on or before August 10, 2005, shall file
a return with the commissioner of revenue, in the form the
commissioner prescribes, showing the stamped cigarettes and
unaffixed stamps on hand at 12:01 a.m. on August 1, 2005, and
the amount of fee due on the cigarettes and unaffixed stamps.
Each retailer, subjobber, vendor, manufacturer, or
manufacturer's representative, on or before August 10, 2005,
shall file a return with the commissioner of revenue, in the
form the commissioner prescribes, showing the cigarettes on hand
at 12:01 a.m. on August 1, 2005, and the amount of fee due on
the cigarettes. The fee imposed by this section is due and
payable on or before September 7, 2005, and after that date
bears interest at the rate of one percent per month.
new text end
new text begin Subd. 2. new text end
new text begin Audit and enforcement. new text end
new text begin
The fee imposed by this
section is subject to the audit, assessment, interest, appeal,
refund, penalty, enforcement, administrative, and collection
provisions of Minnesota Statutes, chapters 270C and 297F. The
commissioner of revenue may require a distributor to receive and
maintain copies of floor stocks fee returns filed by all persons
requesting a credit for returned cigarettes.
new text end
new text begin Subd. 3.new text end
new text begin Deposit of proceeds.new text end
new text begin The commissioner of
revenue shall deposit the revenues from the fee under this
section in the health impact fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2005.
new text end