HF 2359

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; increasing the cigarette tax;
modifying the dedication of cigarette tax revenues;
imposing a floor stocks tax; amending Minnesota
Statutes 2004, sections 297F.05, subdivision 1;
297F.10, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 297F.05,
subdivision 1, is amended to read:

Subdivision 1.

Rates; cigarettes.

A tax 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, at the following rates:

(1) on cigarettes weighing not more than three pounds per
thousand, deleted text begin 24 deleted text end new text begin 74 new text end mills on each such cigarette; and

(2) on cigarettes weighing more than three pounds per
thousand, deleted text begin 48 deleted text end new text begin 148 new text end mills on each such cigarette.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 2.

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 3.97 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 7.94 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 1.53 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 3.06 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 revenues
received for taxes subject to the rate increase in section 1, as
determined by the commissioner of revenue.
new text end

Sec. 3. new text begin FLOOR STOCKS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Cigarettes. new text end

new text begin (a) A floor stocks tax is
imposed on every person engaged in 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 July 1, 2005. The
tax is imposed at the following rates:
new text end

new text begin (1) on cigarettes weighing not more than three pounds per
thousand, 50 mills on each cigarette; and
new text end

new text begin (2) on cigarettes weighing more than three pounds per
thousand, 100 mills on each cigarette.
new text end

new text begin (b) Each distributor, by July 8, 2005, shall file a report
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 July 1, 2005, and the amount of tax due
on the cigarettes and unaffixed stamps. The tax imposed by this
section is due and payable by August 1, 2005, and after that
date bears interest as provided in Minnesota Statutes, section
270.75. Each retailer, subjobber, vendor, manufacturer, or
manufacturer's representative shall file a return with the
commissioner, in the form the commissioner prescribes, showing
the cigarettes on hand at 12:01 a.m. on July 1, 2005, and pay
the tax due on them by August 1, 2005. Tax not paid by the due
date bears interest as provided in Minnesota Statutes, section
270.75.
new text end

new text begin Subd. 2. new text end

new text begin Audit and enforcement. new text end

new text begin The tax imposed by this
section is subject to the audit, assessment, and collection
provisions applicable to the taxes imposed under Minnesota
Statutes, chapter 297F. The commissioner shall deposit the
revenues from this tax in the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end