SF 1051

as introduced - 90th Legislature (2017 - 2018) Posted on 02/17/2017 09:00am

A bill for an act
relating to taxation; tobacco; freezing the cigarette excise tax at its current rate;
repealing the annual indexing requirement for cigarettes; amending Minnesota
Statutes 2016, section 297F.05, subdivision 1; repealing Minnesota Statutes 2016,
section 297F.05, subdivision 1a.

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

Section 1.

Minnesota Statutes 2016, 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 rate
of deleted text begin 141.5 deleted text end new text begin 152 new text end mills, or deleted text begin 14.15 deleted text end new text begin 15.2 new text end cents, on each cigarette.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective after June 30, 2017.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 297F.05, subdivision 1a, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective after June 30, 2017.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-2030

297F.05 RATES OF TAX; PERSONAL DEBT.

Subd. 1a.

Annual indexing.

(a) Each year the commissioner shall adjust the tax rates under subdivision 1, including any adjustment made in prior years under this subdivision, by multiplying the mill rates for the current calendar year by an adjustment factor and rounding the result to the nearest mill. The adjustment factor equals the in-lieu sales tax rate that applies to the following calendar year divided by the in-lieu sales tax rate for the current calendar year. For purposes of this subdivision, "in-lieu sales tax rate" means the tax rate established under section 297F.25, subdivision 1. For purposes of the calculations under this subdivision to be made in any year in which an increase in the federal or state excise tax on cigarettes is implemented, the commissioner shall exclude from the calculated average price for the current year an amount equal to any increase in the state or federal excise tax rate.

(b) The commissioner shall publish the resulting rate by November 1 and the rate applies to sales made on or after January 1 of the following year.

(c) The determination of the commissioner under this subdivision is not a rule and is not subject to the Administrative Procedure Act in chapter 14.