Minnesota Legislature
HF 3751
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Bill Text Versions
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| Introduction | Posted on 03/04/2008 |
Current Version - as introduced
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A bill for an act
relating to taxation; tobacco taxes; decreasing the rate; establishing a maximum
tax for cigars; providing for tax adjustment; amending Minnesota Statutes 2006,
section 297F.05, subdivisions 3, 4, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, 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 35deleted 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 July 1, 2008.
new text end
Sec. 2.
Minnesota Statutes 2006, 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 35deleted text end
new text begin 17.37 new text end percent of the cost to the consumer of the tobacco productsnew text begin not to exceed an amount
equal to 50 cents per cigarnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 3.
Minnesota Statutes 2006, section 297F.05, is amended by adding a subdivision
to read:
new text begin Subd. 8. new text end
new text begin Tax equity. new text end
new text begin
Prior to January 15 of every odd-numbered year, the
commissioner of revenue shall determine, and advise the legislature, what rates of taxation
for cigars would result in a state cigar tax that would be substantially equal to the tax on
cigarettes for each dollar of products sold at wholesale.
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