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SF 1911

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

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; increasing cigarette and tobacco
taxes; repealing health care provider tax; dedicating
a portion of the tax increases to health care access
fund; amending Minnesota Statutes 2004, sections
13.4963, subdivision 2; 62J.041, subdivision 1;
62Q.095, subdivision 6; 214.16, subdivisions 2, 3;
270B.14, subdivision 1; 297F.05, subdivisions 1, 3, 4;
297F.10; repealing Minnesota Statutes 2004, sections
13.4967, subdivision 3; 144.1484, subdivision 2;
295.50; 295.51; 295.52; 295.53; 295.54; 295.55;
295.56; 295.57; 295.58; 295.581; 295.582; 295.59.

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

Section 1.

Minnesota Statutes 2004, section 13.4963,
subdivision 2, is amended to read:


Subd. 2.

Generally.

Classification and disclosure of tax
data created, collected, or maintained by the Department of
Revenue under chapter 115B, 289A (except for taxes imposed under
sections 298.01, 298.015, and 298.24), 290, 290A, 291, deleted text begin295,
deleted text end 297A, or 297H, or any similar Indian tribal tax administered by
the commissioner according to a tax agreement between the state
and an Indian tribal government are governed by chapter 270B.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 2.

Minnesota Statutes 2004, section 62J.041,
subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this
section, the following definitions apply.

(b) "Health plan company" has the definition provided in
section 62Q.01.

(c) "Total expenditures" means incurred claims or
expenditures on health care services, administrative expenses,
charitable contributions, and all other payments made by health
plan companies out of premium revenues.

(d) "Net expenditures" means total expenditures minus
exempted taxes and assessments and payments or allocations made
to establish or maintain reserves.

(e) "Exempted taxes and assessments" means direct payments
for taxes to government agencies, contributions to the Minnesota
Comprehensive Health Association, the medical assistance
provider's surcharge under section 256.9657, the MinnesotaCare
provider tax under new text beginMinnesota Statutes 2004,new text endsection 295.52,
assessments by the Health Coverage Reinsurance Association,
assessments by the Minnesota Life and Health Insurance Guaranty
Association, assessments by the Minnesota Risk Adjustment
Association, and any new assessments imposed by federal or state
law.

(f) "Consumer cost-sharing or subscriber liability" means
enrollee coinsurance, co-payment, deductible payments, and
amounts in excess of benefit plan maximums.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 3.

Minnesota Statutes 2004, section 62Q.095,
subdivision 6, is amended to read:


Subd. 6.

Exemption.

A health plan company, to the extent
that it operates as a staff model health plan company deleted text beginas defined
in section 295.50, subdivision 12b,
deleted text endby employing allied
independent health care providers to deliver health care
services to enrollees, is exempt from this section. new text beginFor
purposes of this section, "staff model health plan company"
means a health plan company as defined in section 62Q.01,
subdivision 4, that employs one or more types of health care
provider to deliver health care services to the health plan
company's enrollees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 4.

Minnesota Statutes 2004, section 214.16,
subdivision 2, is amended to read:


Subd. 2.

Board cooperation required.

The board shall
assist the commissioner of health in data collection activities
required under Laws 1992, chapter 549, article 7deleted text begin, and shall
assist the commissioner of revenue in activities related to
collection of the health care provider tax required under Laws
1992, chapter 549, article 9
deleted text end. Upon the request of the
commissioner deleted text beginor the commissioner of revenuedeleted text end, the board shall
make available names and addresses of current licensees and
provide other information or assistance as needed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 5.

Minnesota Statutes 2004, section 214.16,
subdivision 3, is amended to read:


Subd. 3.

Grounds for disciplinary action.

The board
shall take disciplinary action, which may include license
revocation, against a regulated person for:

(1) intentional failure to provide the commissioner of
health with the data required under chapter 62J;

(2) deleted text beginintentional failure to provide the commissioner of
revenue with data on gross revenue and other information
required for the commissioner to implement sections 295.50 to
295.58;
deleted text end

deleted text begin (3) intentional failure to pay the health care provider tax
required under section 295.52; and
deleted text end

deleted text begin (4) deleted text endentering into a contract or arrangement that is
prohibited under sections 62J.70 to 62J.73.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 6.

Minnesota Statutes 2004, section 270B.14,
subdivision 1, is amended to read:


Subdivision 1.

Disclosure to commissioner of human
services.

(a) On the request of the commissioner of human
services, the commissioner shall disclose return information
regarding taxes imposed by chapter 290, and claims for refunds
under chapter 290A, to the extent provided in paragraph (b) and
for the purposes set forth in paragraph (c).

(b) Data that may be disclosed are limited to data relating
to the identity, whereabouts, employment, income, and property
of a person owing or alleged to be owing an obligation of child
support.

(c) The commissioner of human services may request data
only for the purposes of carrying out the child support
enforcement program and to assist in the location of parents who
have, or appear to have, deserted their children. Data received
may be used only as set forth in section 256.978.

(d) The commissioner shall provide the records and
information necessary to administer the supplemental housing
allowance to the commissioner of human services.

(e) At the request of the commissioner of human services,
the commissioner of revenue shall electronically match the
Social Security numbers and names of participants in the
telephone assistance plan operated under sections 237.69 to
237.711, with those of property tax refund filers, and determine
whether each participant's household income is within the
eligibility standards for the telephone assistance plan.

(f) The commissioner may provide records and information
collected under new text beginMinnesota Statutes 2004,new text endsections 295.50 to
295.59new text begin,new text endto the commissioner of human services for purposes of
the Medicaid Voluntary Contribution and Provider-Specific Tax
Amendments of 1991, Public Law 102-234. Upon the written
agreement by the United States Department of Health and Human
Services to maintain the confidentiality of the data, the
commissioner may provide records and information collected under
sections 295.50 to 295.59 to the Centers for Medicare and
Medicaid Services section of the United States Department of
Health and Human Services for purposes of meeting federal
reporting requirements.

(g) The commissioner may provide records and information to
the commissioner of human services as necessary to administer
the early refund of refundable tax credits.

(h) The commissioner may disclose information to the
commissioner of human services necessary to verify income for
eligibility and premium payment under the MinnesotaCare program,
under section 256L.05, subdivision 2.

(i) The commissioner may disclose information to the
commissioner of human services necessary to verify whether
applicants or recipients for the Minnesota family investment
program, general assistance, food support, and Minnesota
supplemental aid program have claimed refundable tax credits
under chapter 290 and the property tax refund under chapter
290A, and the amounts of the credits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 7.

Minnesota Statutes 2004, 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 following rates:

(1) on cigarettes weighing not more than three pounds per
thousand, deleted text begin24 deleted text endnew text begin74 new text endmills on each such cigarette; and

(2) on cigarettes weighing more than three pounds per
thousand, deleted text begin48 deleted text endnew text begin148 new text endmills on each such cigarette.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 8.

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 begin35 deleted text endnew text begin108 new text endpercent 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 EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 9.

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 begin35 deleted text endnew text begin108 new text endpercent of
the cost to the consumer of the tobacco products.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 10.

Minnesota Statutes 2004, section 297F.10, is
amended to read:


297F.10 DEPOSIT OF PROCEEDS.

Subdivision 1.

Tax and use tax on cigarettes.

Revenue
received from cigarette taxes, as well as related penalties,
interest, license fees, and miscellaneous sources of revenue
shall be deposited by the commissioner in the state treasury and
credited as follows:

(1) the revenue produced by deleted text begin3.25 deleted text endnew text begin3.95 new text endmills of the tax on
cigarettes weighing not more than three pounds a thousand and
deleted text begin 6.5 deleted text endnew text begin7.90 new text endmills of the tax on cigarettes weighing more than three
pounds a thousand must be credited to the Academic Health Center
special revenue fund hereby created and is annually appropriated
to the Board of Regents at the University of Minnesota for
Academic Health Center funding at the University of Minnesota;
and

(2) the revenue produced by deleted text begin1.25 deleted text endnew text begin1.52 new text endmills of the tax on
cigarettes weighing not more than three pounds a thousand and
deleted text begin 2.5 deleted text endnew text begin3.04 new text endmills of the tax on cigarettes weighing more than three
pounds a thousand must be credited to the medical education and
research costs account hereby created in the special revenue
fund and is annually appropriated to the commissioner of health
for distribution under section 62J.692, subdivision 4; and

(3) new text beginthe revenue produced by 46.53 mills of the tax on
cigarettes weighing not more than three pounds per thousand and
the revenue produced by 93.06 mills of the tax on cigarettes
weighing more than three pounds, and the revenue produced by 62
percent of the wholesale price of tobacco products shall be
deposited in the health care access fund under section 295.58;
and
new text end

new text begin (4) new text endthe balance of the revenues derived from taxes,
penalties, and interest (under this chapter) and from license
fees and miscellaneous sources of revenue shall be credited to
the general fund.

Subd. 2.

Tax and use tax on tobacco products.

new text beginThe
new text end revenue deleted text beginreceived from taxes on deleted text endnew text beginproduced by 46 percent of the
wholesale price of
new text endtobacco products, as well as related
penalties, interest, and license fees shall be deposited by the
commissioner in the state treasury and credited to the general
fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 11. new text beginFLOOR STOCKS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Cigarettes. new text end

new text begin (a) A floor stocks tax is
imposed on every person engaged in business in this state as a
distributor, retailer, subjobber, vendor, manufacturer, or
manufacturer's representative of cigarettes, on the stamped
cigarettes and unaffixed stamps in the person's possession or
under the person's control at 12:01 a.m. on January 1, 2006.
The tax is imposed at the following rates:
new text end

new text begin (1) on cigarettes weighing not more than three pounds per
thousand, 50 mills on each cigarette; and
new text end

new text begin (2) on cigarettes weighing more than three pounds per
thousand, 100 mills on each cigarette.
new text end

new text begin (b) Each distributor, by January 8, 2006, shall file a
report with the commissioner of revenue, in the form the
commissioner prescribes, showing the stamped cigarettes and
unaffixed stamps on hand at 12:01 a.m. on January 1, 2006, and
the amount of tax due on the cigarettes and unaffixed stamps.
The tax imposed by this section is due and payable by February
1, 2006, and after that date bears interest as provided in
Minnesota Statutes, section 270.75. Each retailer, subjobber,
vendor, manufacturer, or manufacturer's representative shall
file a return with the commissioner, in the form the
commissioner prescribes, showing the cigarettes on hand at 12:01
a.m. on January 1, 2006, and pay the tax due on them by February
1, 2006. Tax not paid by the due date bears interest as
provided in Minnesota Statutes, section 270.75.
new text end

new text begin Subd. 2. new text end

new text begin Tobacco products. new text end

new text begin A floor stocks tax is imposed
on every person engaged in business in this state as a
distributor of tobacco products, at the rate of 73 percent of
the wholesale sales price of each tobacco product in the
person's possession or under the person's control at 12:01 a.m.
on January 1, 2006, and the amount of tax due on them. The tax
imposed by this section is due and payable by February 1, 2006,
and thereafter bears interest as provided in Minnesota Statutes,
section 270.75.
new text end

new text begin Subd. 3.new text end

new text beginAudit and enforcement.new text end

new text beginThe tax imposed by this
section is subject to the audit, assessment, and collection
provisions applicable to the taxes imposed under Minnesota
Statutes, chapter 297F. The commissioner shall deposit the
revenues from the tax imposed under this section in the health
care access fund in the state treasury.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 12. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 13.4967, subdivision 3;
144.1484, subdivision 2; 295.50; 295.51; 295.52; 295.53; 295.54;
295.55; 295.56; 295.57; 295.58; 295.581; 295.582; and 295.59.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross
revenues received after January 1, 2006.
new text end