HF 1363

as introduced - 90th Legislature (2017 - 2018) Posted on 02/16/2017 02:24pm

A bill for an act
relating to taxation; tobacco products; modifying the tax structure for moist snuff;
amending Minnesota Statutes 2016, section 297F.05, subdivision 3.

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

Section 1.

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

Subd. 3.

Rates; tobacco products.

(a) Except as provided in new text begin paragraph (b) and
new text end subdivision 3a, a tax is imposed upon all tobacco products in this state and upon any person
engaged in business as a distributor, at the rate of 95 percent of the wholesale sales price
of the tobacco products. 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.

(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a pack
of 20 cigarettes weighing not more than three pounds per thousand, as established under
subdivision 1, is imposed on each container of moist snuff.

For purposes of this subdivision, a "container" means the smallest consumer-size can,
package, or other container that is marketed or packaged by the manufacturer, distributor,
or retailer for separate sale to a retail purchaser. when more than one container is packaged
together, each container is subject to tax. new text begin When a consumer-size can, package, or other
container of moist snuff contains the equivalent of multiple containers as defined in this
subdivision, each 1.2 ounces of moist snuff, or fraction thereof, shall be taxed at the rate in
paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

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