HF 3537

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

A bill for an act
relating to taxes; equalizing the health impact fee and excise tax on other tobacco
products; clarifying the application of the tobacco use health impact fee on
other tobacco products; amending Minnesota Statutes 2004, section 297F.05,
subdivisions 3, 4; Minnesota Statutes 2005 Supplement, section 256.9658,
subdivision 3.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 256.9658, subdivision 3,
is amended to read:

Subd. 3.

Fee imposed.

(a) A fee 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
of cigarettes. The fee is imposed at the following rates:

(1) on cigarettes weighing not more than three pounds per thousand, 37.5 mills on
each cigarette; and

(2) on cigarettes weighing more than three pounds per thousand, 75 mills on each
cigarette.

(b) A fee is imposed upon all tobacco products in this state and upon any person
engaged in business as a distributor in an amount equal to the liability for tax under
section 297F.05, subdivision 3, or on a consumer of tobacco products equal to the tax
under section 297F.05, subdivision 4. Liability for the fee is in addition to the tax under
section 297F.05, subdivision 3 or 4. new text begin If, for any reason, a fee under paragraph (a) is not
being collected on all cigarettes or the fee on all cigarettes is refunded, the fee must not be
collected or must be refunded on any other tobacco products under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and in addition applies to any tobacco products fees held in escrow by the Department
of Revenue pending a court determination on the constitutionality of the health impact
fee and to any refunds issued after the day following final enactment without regard to
the date of collection of the fee.
new text end

Sec. 2.

Minnesota Statutes 2004, section 297F.05, subdivision 3, is amended to read:

Subd. 3.

Rates; tobacco products.

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 deleted text begin 35 deleted text end
new text begin 17.37 new text end 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.

new text begin The tax that is imposed upon cigars by this subdivision shall not exceed an amount
equal to 50 cents per cigar for any wholesale transaction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2004, section 297F.05, subdivision 4, is amended to read:

Subd. 4.

Use tax; tobacco products.

A tax is imposed upon the use or storage by
consumers of tobacco products in this state, and upon such consumers, at the rate of deleted text begin 35 deleted text end new text begin
17.37 new text end percent of the cost to the consumer of the tobacco products new text begin not to exceed an amount
equal to 50 cents per cigar new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end