SF 1640

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; increasing the rate of taxes on 
  1.3             cigarettes and other tobacco products; imposing floor 
  1.4             stocks taxes; appropriating money; amending Minnesota 
  1.5             Statutes 1996, sections 297.02, subdivision 1; 297.03, 
  1.6             subdivision 5; and 297.32, subdivisions 1 and 2. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 297.02, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [RATES.] A tax is hereby imposed upon the 
  1.11  sale of cigarettes in this state or having cigarettes in 
  1.12  possession in this state with intent to sell and upon any person 
  1.13  engaged in business as a distributor thereof, at the following 
  1.14  rates, subject to the discount provided in section 297.03: 
  1.15     (1) On cigarettes weighing not more than three pounds per 
  1.16  thousand, 24 36.5 mills on each such cigarette; 
  1.17     (2) On cigarettes weighing more than three pounds per 
  1.18  thousand, 48 73 mills on each such cigarette. 
  1.19     Sec. 2.  Minnesota Statutes 1996, section 297.03, 
  1.20  subdivision 5, is amended to read: 
  1.21     Subd. 5.  [SALE OF STAMPS.] The commissioner shall sell 
  1.22  stamps to any person licensed as a distributor at a discount of 
  1.23  1.0 .66 percent from the face amount of the stamps for the first 
  1.24  $1,500,000 of such stamps purchased in any fiscal year; and at a 
  1.25  discount of .60 .39 percent on the remainder of such stamps 
  1.26  purchased in any fiscal year.  The commissioner shall not sell 
  2.1   stamps to any other person.  The commissioner may prescribe the 
  2.2   method of shipment of the stamps to the distributor as well as 
  2.3   the quantities of stamps purchased.  
  2.4      Sec. 3.  Minnesota Statutes 1996, section 297.32, 
  2.5   subdivision 1, is amended to read: 
  2.6      Subdivision 1.  A tax is hereby imposed upon all tobacco 
  2.7   products in this state and upon any person engaged in business 
  2.8   as a distributor thereof, at the rate of 35 50 percent of the 
  2.9   wholesale sales price of such tobacco products.  Such tax shall 
  2.10  be imposed at the time the distributor (1) brings, or causes to 
  2.11  be brought, into this state from without the state tobacco 
  2.12  products for sale; (2) makes, manufactures, or fabricates 
  2.13  tobacco products in this state for sale in this state; or (3) 
  2.14  ships or transports tobacco products to retailers in this state, 
  2.15  to be sold by those retailers.  
  2.16     Sec. 4.  Minnesota Statutes 1996, section 297.32, 
  2.17  subdivision 2, is amended to read: 
  2.18     Subd. 2.  A tax is hereby imposed upon the use or storage 
  2.19  by consumers of tobacco products in this state, and upon such 
  2.20  consumers, at the rate of 35 50 percent of the cost of such 
  2.21  tobacco products.  
  2.22     The tax imposed by this subdivision shall not apply if the 
  2.23  tax imposed by subdivision 1 on such tobacco products has been 
  2.24  paid.  
  2.25     This tax shall not apply to the use or storage of tobacco 
  2.26  products in quantities of: 
  2.27     1.  not more than 50 cigars; 
  2.28     2.  not more than ten oz. snuff or snuff powder; 
  2.29     3.  not more than one lb. smoking or chewing tobacco or 
  2.30  other tobacco products not specifically mentioned herein, in the 
  2.31  possession of any one consumer.  
  2.32     Sec. 5.  [FLOOR STOCKS TAX.] 
  2.33     Subdivision 1.  [CIGARETTES AND LITTLE CIGARS.] A floor 
  2.34  stocks tax is imposed upon every person engaged in business in 
  2.35  this state as a distributor, retailer, subjobber, vendor, 
  2.36  manufacturer, or manufacturer's representative of cigarettes on 
  3.1   cigarettes and little cigars in the person's possession or under 
  3.2   the person's control at 12:01 a.m. on July 1, 1997, at the 
  3.3   following rates, subject to the discount provided in Minnesota 
  3.4   Statutes, section 297.03: 
  3.5      (1) on cigarettes weighing not more than three pounds a 
  3.6   thousand and little cigars, 12.5 mills on each cigarette and 
  3.7   little cigar; and 
  3.8      (2) on cigarettes weighing more than three pounds a 
  3.9   thousand, 25 mills on each cigarette. 
  3.10     Each distributor, retailer, subjobber, vendor, 
  3.11  manufacturer, or manufacturer's representative, by July 20, 
  3.12  1997, shall file a report with the commissioner, in the form the 
  3.13  commissioner prescribes, showing the cigarettes and little 
  3.14  cigars on hand at 12:01 a.m. on July 1, 1997, and the amount of 
  3.15  tax due on them.  The tax imposed by this section less the 
  3.16  discount provided in Minnesota Statutes, section 297.03, 
  3.17  subdivision 5, is due and payable by August 20, 1997, and 
  3.18  thereafter bears interest at the rate of one percent a month. 
  3.19     Subd. 2.  [TOBACCO PRODUCTS.] A floor stocks tax is imposed 
  3.20  upon every person engaged in business in this state as a 
  3.21  distributor of tobacco products, at the rate of 15 percent of 
  3.22  the wholesale sales price of each tobacco product in the 
  3.23  person's possession or under the person's control at 12:01 a.m. 
  3.24  on July 1, 1997.  Each distributor, by July 20, 1997, shall file 
  3.25  a report with the commissioner, in the form the commissioner 
  3.26  prescribes, showing the tobacco products on hand at 12:01 a.m. 
  3.27  on July 1, 1997, and the amount of tax due on them.  The tax 
  3.28  imposed by this section less the discount provided in Minnesota 
  3.29  Statutes, section 297.35, subdivision 1, is due and payable by 
  3.30  August 20, 1997, and thereafter bears interest at the rate of 
  3.31  one percent a month. 
  3.32     Sec. 6.  [APPROPRIATIONS.] 
  3.33     Subdivision 1.  [DEPARTMENT OF HEALTH.] $40,717,000 is 
  3.34  appropriated from the general fund to the department of health 
  3.35  for the purposes specified in this section for the biennium 
  3.36  ending June 30, 1999.  Of this appropriation, $17,095,000 is 
  4.1   appropriated for fiscal year 1998 and $23,622,000 for fiscal 
  4.2   year 1999. 
  4.3      (a) Of this amount, $15,095,000 is appropriated in the 
  4.4   fiscal year beginning July 1, 1997; and $21,622,000 is 
  4.5   appropriated in the fiscal year beginning July 1, 1998, for 
  4.6   medical education and research activities. 
  4.7      (b) Of this amount, $2,000,000 in each of fiscal years 1998 
  4.8   and 1999 is for the purpose of conducting tobacco use prevention 
  4.9   programs. 
  4.10     Subd. 2.  [UNIVERSITY OF MINNESOTA; ACADEMIC HEALTH 
  4.11  CENTER.] $24,637,000 is appropriated to the academic health 
  4.12  center at the University of Minnesota.  Of this appropriation, 
  4.13  $14,624,000 is for fiscal year 1998 and $10,013,000 is for 
  4.14  fiscal year 1999. 
  4.15     (a) Of this amount, for the fiscal year beginning July 1, 
  4.16  1997: 
  4.17     (1) $3,133,000 is appropriated for costs incurred for a 
  4.18  center for health care systems; 
  4.19     (2) $6,133,000 is appropriated for costs incurred for a 
  4.20  rural health school; 
  4.21     (3) $2,049,000 is appropriated for costs incurred for an 
  4.22  adolescent health institute; and 
  4.23     (4) $3,309,000 is appropriated for costs incurred for 
  4.24  cancer sciences.  
  4.25     (b) Of this amount, for the fiscal year beginning July 1, 
  4.26  1998: 
  4.27     (1) $2,424,000 is appropriated for costs incurred for an 
  4.28  advanced therapies institute; 
  4.29     (2) $3,285,000 is appropriated for costs incurred for a 
  4.30  biomedical engineering initiative; and 
  4.31     (3) $4,304,000 is appropriated for costs incurred for a 
  4.32  genetics/immunology center. 
  4.33     Subd. 3.  [COMPREHENSIVE HEALTH ASSOCIATION.] For each of 
  4.34  the fiscal years beginning July 1, 1997, and July 1, 1998, the 
  4.35  commissioner of revenue shall estimate the amount of tax 
  4.36  proceeds generated by the increases in taxes under sections 1, 
  5.1   3, and 4.  The excess of that estimated amount for each fiscal 
  5.2   year over the total appropriations under subdivisions 1 and 2 
  5.3   for that fiscal year is appropriated from the general fund to 
  5.4   the comprehensive health association to meet the claims expenses 
  5.5   and operating and administrative expenses of the association to 
  5.6   the extent those expenses exceed the premiums received. 
  5.7      Sec. 7.  [EFFECTIVE DATE.] 
  5.8      Sections 1 to 5 are effective July 1, 1997.