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Minnesota Legislature

Office of the Revisor of Statutes

HF 123

as introduced - 90th Legislature (2017 - 2018) Posted on 12/05/2017 03:24pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; tobacco; modifying the definition of premium cigar; reducing
the maximum tax on premium cigars; amending Minnesota Statutes 2016, sections
297F.01, subdivision 13a; 297F.05, subdivisions 3a, 4a.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 297F.01, subdivision 13a, is amended to read:


Subd. 13a.

Premium cigar.

"Premium cigar" means any cigar that is hand-constructed
deleted text begin and hand-rolleddeleted text end, has a wrapper that is made entirely from whole tobacco leaf, has a filler
and binder that is made entirely of tobacco, except for adhesives or other materials used to
maintain size, texture, or flavor, and has a wholesale price of no less than $2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 297F.05, subdivision 3a, is amended to read:


Subd. 3a.

Rates; premium cigars.

(a) A tax is imposed upon all premium cigars in this
state and upon any person engaged in business as a tobacco product distributor, at the lesser
of:

(1) the rate of 95 percent of the wholesale sales price of the premium cigars; or

(2) deleted text begin$3.50deleted text endnew text begin $0.50new text end per premium cigar.

(b) The tax imposed under paragraph (a) is imposed at the time the tobacco products
distributor:

(1) brings, or causes to be brought, into this state from outside the state premium cigars
for sale;

(2) makes, manufactures, or fabricates premium cigars in this state for sale in this state;
or

(3) ships or transports premium cigars to retailers in this state, to be sold by those retailers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 297F.05, subdivision 4a, is amended to read:


Subd. 4a.

Use tax; premium cigars.

A tax is imposed upon the use or storage by
consumers of all premium cigars in this state, and upon such consumers, at the lesser of:

(1) the rate of 95 percent of the cost to the consumer of the premium cigars; or

(2) deleted text begin$3.50deleted text endnew text begin $0.50new text end per premium cigar.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end