SF 1896

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to finance; changing the computation of the tobacco tax and tobacco
health impact fee on moist snuff; amending Minnesota Statutes 2006, sections
297F.01, subdivision 19, by adding a subdivision; 297F.05, subdivisions 3, 4.

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

Section 1.

Minnesota Statutes 2006, section 297F.01, is amended by adding a
subdivision to read:

new text begin Subd. 10b. new text end

new text begin Moist snuff. new text end

new text begin "Moist snuff" means any finely cut, ground, or powdered
smokeless tobacco that is intended to be placed or dipped in the oral cavity.
new text end

Sec. 2.

Minnesota Statutes 2006, section 297F.01, subdivision 19, is amended to read:

Subd. 19.

Tobacco products.

"Tobacco products" means cigars; little cigars;
cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other
smoking tobacco; snuff new text begin , including moist snuff and dry snuff new text end ; snuff flour; cavendish; plug
and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings,
cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in
such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for
chewing and smoking; but does not include cigarettes as defined in this section.

Sec. 3.

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 deleted text begin rate deleted text end new text begin rates new text end of new text begin :
new text end

new text begin (i) new text end 35 percent of the wholesale sales price of the tobacco products new text begin other than moist
snuff; and
new text end

new text begin (ii) in the case of moist snuff, 91 cents per ounce on the net weight of the moist snuff
in ounces, including a proportionate tax at the like rate on any fractional parts of an ounce,
as listed by the manufacturer new text end . 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.

Sec. 4.

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 deleted text begin rate deleted text end new text begin rates new text end of new text begin :
new text end

new text begin (i) new text end 35 percent of the cost to the consumer of the tobacco products new text begin other than moist
snuff; and
new text end

new text begin (ii) in the case of moist snuff, 91 cents per ounce on the net weight of the moist
snuff in ounces, including a proportionate tax at the like rate on any fractional parts of
an ounce, as listed by the manufacturer new text end .

Sec. 5. new text begin EFFECTIVE DATE; TRANSITION.
new text end

new text begin Sections 1 to 4 are effective July 1, 2007. However, sections 3 and 4 do not apply to
any moist snuff (i) that was in the inventory of a distributor, wholesaler, or retail dealer
within this state upon the first day of the month following the effective date of this act,
and (ii) as to which the tax levied by Minnesota Statutes, section 297F.01, subdivision
3, and the tobacco health impact fee levied by Minnesota Statutes, section 256.9658,
subdivision 3, paragraph (b), had been paid as of the first day of the month following the
effective date of sections 1 to 4.
new text end