HF 2314

as introduced - 90th Legislature (2017 - 2018) Posted on 03/09/2017 09:16am

A bill for an act
relating to taxation; tobacco; 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 paragraphs (b) and (c) 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) deleted text begin Notwithstanding paragraph (a), deleted text end A deleted text begin minimum deleted text end tax equal to new text begin the greater of the tax imposed
under paragraph (a) or a minimum tax equal to new text end 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 new text begin weighing not more than 1.2 ounces. When more
than one container subject to tax under this paragraph is packaged together, each container
is subject to the minimum tax new text end .

new text begin (c) Except as provided in paragraph (b), a tax equal to the greater of the tax imposed
under paragraph (a) or 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,
multiplied by the number of ounces of moist snuff in the container, divided by 1.2, is imposed
on each container of moist snuff weighing more than 1.2 ounces.
new text end

new text begin (d) new text end For purposes of this subdivision, a "container" means deleted text begin the smallest deleted text end new text begin a new text end consumer-size
can, package, or other container that is marketed or packaged deleted text begin by the manufacturer, distributor,
or retailer deleted text end for deleted text begin separate deleted text end sale to a retail purchaser. deleted text begin When more than one container is packaged
together, each container is subject to tax.
deleted text end

new text begin EFFECTIVE DATE. new text end

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