HF 2363

as introduced - 89th Legislature (2015 - 2016) Posted on 05/16/2015 11:00am

A bill for an act
relating to taxation; tobacco products; modifying the tax structure for moist
snuff; amending Minnesota Statutes 2014, section 297F.05, subdivision 3.

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

Section 1.

Minnesota Statutes 2014, 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, 2015.
new text end