SF 3051

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; imposing a "dime-a-drink" tax on 
  1.3             alcoholic beverages; increasing the tax on cigarettes 
  1.4             and tobacco products; eliminating the MinnesotaCare 
  1.5             tax on health care providers; making conforming 
  1.6             changes; amending Minnesota Statutes 2002, sections 
  1.7             62Q.095, subdivision 6; 214.16, subdivisions 2, 3; 
  1.8             297F.05, subdivisions 3, 4; 297F.10, subdivision 2; 
  1.9             297G.05, subdivisions 1, 2; 297G.10; Minnesota 
  1.10            Statutes 2003 Supplement, sections 270.06; 270B.14, 
  1.11            subdivision 1; 297F.05, subdivision 1; 297F.10, 
  1.12            subdivision 1; proposing coding for new law in 
  1.13            Minnesota Statutes, chapters 16A; 297F; 297G; 
  1.14            repealing Minnesota Statutes 2002, sections 13.4967, 
  1.15            subdivision 3; 295.50, subdivisions 1, 2, 2a, 3, 4, 6, 
  1.16            6a, 7, 9c, 10a, 10b, 12b, 13, 14, 15; 295.51; 295.52; 
  1.17            295.53, subdivisions 2, 3, 4a; 295.54; 295.55, 
  1.18            subdivisions 1, 3, 4, 5, 6, 7; 295.56; 295.57; 295.58; 
  1.19            295.581; 295.582; 295.59; Minnesota Statutes 2003 
  1.20            Supplement, sections 295.50, subdivision 9b; 295.53, 
  1.21            subdivision 1; 295.55, subdivision 2. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23                             ARTICLE 1
  1.24                CIGARETTE AND TOBACCO PRODUCTS TAX;
  1.25                    TAX ON ALCOHOLIC BEVERAGES; 
  1.26               REPEAL OF MINNESOTACARE PROVIDER TAXES 
  1.27     Section 1.  [16A.725] [REVENUE ADJUSTMENTS; HEALTH CARE 
  1.28  ACCESS FUND.] 
  1.29     (a) Every three years the commissioner of revenue, in 
  1.30  consultation with the commissioner of finance, must determine if 
  1.31  it is necessary to adjust the cigarette and other tobacco 
  1.32  products taxes and the alcoholic beverages taxes in order to 
  1.33  provide adequate revenue to the health care access fund to 
  2.1   replace the revenue that would have been credited to the health 
  2.2   care access fund if the MinnesotaCare taxes had not been 
  2.3   repealed. 
  2.4      (b) By July 1, 2007, and by July 1 of every third year 
  2.5   thereafter, the commissioner must prepare an estimate of the 
  2.6   following amounts for the three calendar-year period beginning 
  2.7   on January 1 following the date of the estimate: 
  2.8      (i) the amount of revenue from cigarette and other tobacco 
  2.9   products taxes forecast to be credited to the health care access 
  2.10  fund under section 297F.10, including any revenue from previous 
  2.11  rate adjustments under section 297F.065; 
  2.12     (ii) the amount of revenue from alcoholic beverage taxes 
  2.13  forecast to be credited to the health care access fund under 
  2.14  section 297G.041, including any revenue from previous rate 
  2.15  adjustments under section 297G.042; and 
  2.16     (iii) the amount of revenue estimated to have been credited 
  2.17  to the health care access fund had the MinnesotaCare taxes not 
  2.18  been repealed. 
  2.19     (c) If the amount of revenue forecast under paragraph (b), 
  2.20  clauses (i) and (ii) combined is less than the amount estimated 
  2.21  under paragraph (b), clause (iii), then the commissioner must 
  2.22  proportionately adjust the taxes on cigarettes and other tobacco 
  2.23  products, and impose a corresponding floor stocks tax as 
  2.24  provided in section 297F.065, and the taxes on alcoholic 
  2.25  beverages as provided in section 297G.042 so that the amount of 
  2.26  revenue forecast under paragraph (b), clauses (i) and (ii) is at 
  2.27  least equal to the amount estimated under paragraph (b), clause 
  2.28  (iii).  The adjustment is effective for the three calendar years 
  2.29  beginning on January 1 following the date of the estimate. 
  2.30     [EFFECTIVE DATE.] This section is effective January 1, 2005.
  2.31     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.32  270.06, is amended to read: 
  2.33     270.06 [POWERS AND DUTIES.] 
  2.34     The commissioner of revenue shall: 
  2.35     (1) have and exercise general supervision over the 
  2.36  administration of the assessment and taxation laws of the state, 
  3.1   over assessors, town, county, and city boards of review and 
  3.2   equalization, and all other assessing officers in the 
  3.3   performance of their duties, to the end that all assessments of 
  3.4   property be made relatively just and equal in compliance with 
  3.5   the laws of the state; 
  3.6      (2) confer with, advise, and give the necessary 
  3.7   instructions and directions to local assessors and local boards 
  3.8   of review throughout the state as to their duties under the laws 
  3.9   of the state; 
  3.10     (3) direct proceedings, actions, and prosecutions to be 
  3.11  instituted to enforce the laws relating to the liability and 
  3.12  punishment of public officers and officers and agents of 
  3.13  corporations for failure or negligence to comply with the 
  3.14  provisions of the laws of this state governing returns of 
  3.15  assessment and taxation of property, and cause complaints to be 
  3.16  made against local assessors, members of boards of equalization, 
  3.17  members of boards of review, or any other assessing or taxing 
  3.18  officer, to the proper authority, for their removal from office 
  3.19  for misconduct or negligence of duty; 
  3.20     (4) require county attorneys to assist in the commencement 
  3.21  of prosecutions in actions or proceedings for removal, 
  3.22  forfeiture and punishment for violation of the laws of this 
  3.23  state in respect to the assessment and taxation of property in 
  3.24  their respective districts or counties; 
  3.25     (5) require town, city, county, and other public officers 
  3.26  to report information as to the assessment of property, 
  3.27  collection of taxes received from licenses and other sources, 
  3.28  and such other information as may be needful in the work of the 
  3.29  Department of Revenue, in such form and upon such blanks as the 
  3.30  commissioner may prescribe; 
  3.31     (6) require individuals, copartnerships, companies, 
  3.32  associations, and corporations to furnish information concerning 
  3.33  their capital, funded or other debt, current assets and 
  3.34  liabilities, earnings, operating expenses, taxes, as well as all 
  3.35  other statements now required by law for taxation purposes; 
  3.36     (7) subpoena witnesses, at a time and place reasonable 
  4.1   under the circumstances, to appear and give testimony, and to 
  4.2   produce books, records, papers and documents for inspection and 
  4.3   copying relating to any matter which the commissioner may have 
  4.4   authority to investigate or determine; 
  4.5      (8) issue a subpoena which does not identify the person or 
  4.6   persons with respect to whose liability the subpoena is issued, 
  4.7   but only if (a) the subpoena relates to the investigation of a 
  4.8   particular person or ascertainable group or class of persons, 
  4.9   (b) there is a reasonable basis for believing that such person 
  4.10  or group or class of persons may fail or may have failed to 
  4.11  comply with any law administered by the commissioner, (c) the 
  4.12  information sought to be obtained from the examination of the 
  4.13  records (and the identity of the person or persons with respect 
  4.14  to whose liability the subpoena is issued) is not readily 
  4.15  available from other sources, (d) the subpoena is clear and 
  4.16  specific as to the information sought to be obtained, and (e) 
  4.17  the information sought to be obtained is limited solely to the 
  4.18  scope of the investigation.  Provided further that the party 
  4.19  served with a subpoena which does not identify the person or 
  4.20  persons with respect to whose tax liability the subpoena is 
  4.21  issued shall have the right, within 20 days after service of the 
  4.22  subpoena, to petition the district court for the judicial 
  4.23  district in which lies the county in which that party is located 
  4.24  for a determination as to whether the commissioner of revenue 
  4.25  has complied with all the requirements in (a) to (e), and thus, 
  4.26  whether the subpoena is enforceable.  If no such petition is 
  4.27  made by the party served within the time prescribed, the 
  4.28  subpoena shall have the force and effect of a court order; 
  4.29     (9) cause the deposition of witnesses residing within or 
  4.30  without the state, or absent therefrom, to be taken, upon notice 
  4.31  to the interested party, if any, in like manner that depositions 
  4.32  of witnesses are taken in civil actions in the district court, 
  4.33  in any matter which the commissioner may have authority to 
  4.34  investigate or determine; 
  4.35     (10) investigate the tax laws of other states and countries 
  4.36  and to formulate and submit to the legislature such legislation 
  5.1   as the commissioner may deem expedient to prevent evasions of 
  5.2   assessment and taxing laws, and secure just and equal taxation 
  5.3   and improvement in the system of assessment and taxation in this 
  5.4   state; 
  5.5      (11) consult and confer with the governor upon the subject 
  5.6   of taxation, the administration of the laws in regard thereto, 
  5.7   and the progress of the work of the Department of Revenue, and 
  5.8   furnish the governor, from time to time, such assistance and 
  5.9   information as the governor may require relating to tax matters; 
  5.10     (12) transmit to the governor, on or before the third 
  5.11  Monday in December of each even-numbered year, and to each 
  5.12  member of the legislature, on or before November 15 of each 
  5.13  even-numbered year, the report of the Department of Revenue for 
  5.14  the preceding years, showing all the taxable property in the 
  5.15  state and the value of the same, in tabulated form; 
  5.16     (13) inquire into the methods of assessment and taxation 
  5.17  and ascertain whether the assessors faithfully discharge their 
  5.18  duties, particularly as to their compliance with the laws 
  5.19  requiring the assessment of all property not exempt from 
  5.20  taxation; 
  5.21     (14) administer and enforce the assessment and collection 
  5.22  of state taxes and fees, including the use of any remedy 
  5.23  available to nongovernmental creditors, and, from time to time, 
  5.24  make, publish, and distribute rules for the administration and 
  5.25  enforcement of laws administered by the commissioner and state 
  5.26  tax laws.  The rules have the force of law; 
  5.27     (15) prepare blank forms for the returns required by state 
  5.28  tax law and distribute them throughout the state, furnishing 
  5.29  them subject to charge on application; 
  5.30     (16) prescribe rules governing the qualification and 
  5.31  practice of agents, attorneys, or other persons representing 
  5.32  taxpayers before the commissioner.  The rules may require that 
  5.33  those persons, agents, and attorneys show that they are of good 
  5.34  character and in good repute, have the necessary qualifications 
  5.35  to give taxpayers valuable services, and are otherwise competent 
  5.36  to advise and assist taxpayers in the presentation of their case 
  6.1   before being recognized as representatives of taxpayers.  After 
  6.2   due notice and opportunity for hearing, the commissioner may 
  6.3   suspend and bar from further practice before the commissioner 
  6.4   any person, agent, or attorney who is shown to be incompetent or 
  6.5   disreputable, who refuses to comply with the rules, or who with 
  6.6   intent to defraud, willfully or knowingly deceives, misleads, or 
  6.7   threatens a taxpayer or prospective taxpayer, by words, 
  6.8   circular, letter, or by advertisement.  This clause does not 
  6.9   curtail the rights of individuals to appear in their own behalf 
  6.10  or partners or corporations' officers to appear in behalf of 
  6.11  their respective partnerships or corporations; 
  6.12     (17) appoint agents as the commissioner considers necessary 
  6.13  to make examinations and determinations.  The agents have the 
  6.14  rights and powers conferred on the commissioner to subpoena, 
  6.15  examine, and copy books, records, papers, or memoranda, subpoena 
  6.16  witnesses, administer oaths and affirmations, and take 
  6.17  testimony.  In addition to administrative subpoenas of the 
  6.18  commissioner and the agents, upon demand of the commissioner or 
  6.19  an agent, the court administrator of any district court shall 
  6.20  issue a subpoena for the attendance of a witness or the 
  6.21  production of books, papers, records, or memoranda before the 
  6.22  agent for inspection and copying.  Disobedience of a court 
  6.23  administrator's subpoena shall be punished by the district court 
  6.24  of the district in which the subpoena is issued, or in the case 
  6.25  of a subpoena issued by the commissioner or an agent, by the 
  6.26  district court of the district in which the party served with 
  6.27  the subpoena is located, in the same manner as contempt of the 
  6.28  district court; 
  6.29     (18) appoint and employ additional help, purchase supplies 
  6.30  or materials, or incur other expenditures in the enforcement of 
  6.31  state tax laws as considered necessary.  The salaries of all 
  6.32  agents and employees provided for in this chapter shall be fixed 
  6.33  by the appointing authority, subject to the approval of the 
  6.34  commissioner of administration; 
  6.35     (19) execute and administer any agreement with the 
  6.36  secretary of the treasury of the United States or a 
  7.1   representative of another state regarding the exchange of 
  7.2   information and administration of the tax laws; 
  7.3      (20) authorize the use of unmarked motor vehicles to 
  7.4   conduct seizures or criminal investigations pursuant to the 
  7.5   commissioner's authority; and 
  7.6      (21) exercise other powers and perform other duties 
  7.7   required of or imposed upon the commissioner of revenue by law; 
  7.8   and 
  7.9      (22) adjust the taxes on cigarettes and tobacco products as 
  7.10  provided under section 297F.065 and adjust the taxes on 
  7.11  alcoholic beverages as provided under section 297G.042. 
  7.12     [EFFECTIVE DATE.] This section is effective January 1, 2005.
  7.13     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  7.14  297F.05, subdivision 1, is amended to read: 
  7.15     Subdivision 1.  [RATES; CIGARETTES.] A tax is imposed upon 
  7.16  the sale of cigarettes in this state, upon having cigarettes in 
  7.17  possession in this state with intent to sell, upon any person 
  7.18  engaged in business as a distributor, and upon the use or 
  7.19  storage by consumers, at the following rates: 
  7.20     (1) on cigarettes weighing not more than three pounds per 
  7.21  thousand, 24 .... mills on each such cigarette; and 
  7.22     (2) on cigarettes weighing more than three pounds per 
  7.23  thousand, 48 .. mills on each such cigarette. 
  7.24     [EFFECTIVE DATE.] This section is effective January 1, 2005.
  7.25     Sec. 4.  Minnesota Statutes 2002, section 297F.05, 
  7.26  subdivision 3, is amended to read: 
  7.27     Subd. 3.  [RATES; TOBACCO PRODUCTS.] A tax is imposed upon 
  7.28  all tobacco products in this state and upon any person engaged 
  7.29  in business as a distributor, at the rate of 35 .. percent of 
  7.30  the wholesale sales price of the tobacco products.  The tax is 
  7.31  imposed at the time the distributor: 
  7.32     (1) brings, or causes to be brought, into this state from 
  7.33  outside the state tobacco products for sale; 
  7.34     (2) makes, manufactures, or fabricates tobacco products in 
  7.35  this state for sale in this state; or 
  7.36     (3) ships or transports tobacco products to retailers in 
  8.1   this state, to be sold by those retailers. 
  8.2      [EFFECTIVE DATE.] This section is effective January 1, 2005.
  8.3      Sec. 5.  Minnesota Statutes 2002, section 297F.05, 
  8.4   subdivision 4, is amended to read: 
  8.5      Subd. 4.  [USE TAX; TOBACCO PRODUCTS.] A tax is imposed 
  8.6   upon the use or storage by consumers of tobacco products in this 
  8.7   state, and upon such consumers, at the rate of 35 .. percent of 
  8.8   the cost to the consumer of the tobacco products. 
  8.9      [EFFECTIVE DATE.] This section is effective January 1, 2005.
  8.10     Sec. 6.  [297F.065] [PERIODIC ADJUSTMENT OF TAX ON 
  8.11  CIGARETTES AND OTHER TOBACCO PRODUCTS.] 
  8.12     If the commissioner of revenue, in consultation with the 
  8.13  commissioner of finance, determines an adjustment is necessary 
  8.14  under section 16A.725, the commissioner shall adjust the rates 
  8.15  of the taxes on cigarettes and other tobacco products beginning 
  8.16  on January 1 of the three calendar-year period for which the 
  8.17  adjustment is required.  The commissioner shall also impose a 
  8.18  corresponding floor stocks tax to be assessed on January 1 of 
  8.19  the first of the three calendar years for which the adjustment 
  8.20  is in effect.  The commissioner shall publish any change in 
  8.21  rates in the State Register by July 1 of the calendar year prior 
  8.22  to that in which any rate increase will be effective.  Any 
  8.23  additional revenue from a tax adjustment under this section is 
  8.24  credited to the health care access fund. 
  8.25     [EFFECTIVE DATE.] This section is effective January 1, 2005.
  8.26     Sec. 7.  Minnesota Statutes 2003 Supplement, section 
  8.27  297F.10, subdivision 1, is amended to read: 
  8.28     Subdivision 1.  [TAX AND USE TAX ON CIGARETTES.] Revenue 
  8.29  received from cigarette taxes, as well as related penalties, 
  8.30  interest, license fees, and miscellaneous sources of revenue 
  8.31  shall be deposited by the commissioner in the state treasury and 
  8.32  credited as follows: 
  8.33     (1) the revenue produced by 3.25 .... mills of the tax on 
  8.34  cigarettes weighing not more than three pounds a thousand and 
  8.35  6.5 ... mills of the tax on cigarettes weighing more than three 
  8.36  pounds a thousand must be credited to the Academic Health Center 
  9.1   special revenue fund hereby created and is annually appropriated 
  9.2   to the Board of Regents at the University of Minnesota for 
  9.3   Academic Health Center funding at the University of Minnesota; 
  9.4   and 
  9.5      (2) the revenue produced by 1.25 .... mills of the tax on 
  9.6   cigarettes weighing not more than three pounds a thousand and 
  9.7   2.5 .... mills of the tax on cigarettes weighing more than three 
  9.8   pounds a thousand must be credited to the medical education and 
  9.9   research costs account hereby created in the special revenue 
  9.10  fund and is annually appropriated to the commissioner of health 
  9.11  for distribution under section 62J.692, subdivision 4; and 
  9.12     (3) the balance of the revenues derived from taxes, 
  9.13  penalties, and interest (under this chapter) and from license 
  9.14  fees and miscellaneous sources of revenue shall be credited to 
  9.15  the general fund, except that the tax revenue resulting from the 
  9.16  increase in the tax on cigarettes weighing not more than three 
  9.17  pounds per thousand from 24 to .. mills and the increase in the 
  9.18  tax on cigarettes weighing more than three pounds per thousand 
  9.19  from 48 to ... mills shall be credited to the health care access 
  9.20  fund. 
  9.21     Sec. 8.  Minnesota Statutes 2002, section 297F.10, 
  9.22  subdivision 2, is amended to read: 
  9.23     Subd. 2.  [TAX AND USE TAX ON TOBACCO PRODUCTS.] Revenue 
  9.24  received from taxes on tobacco products, as well as related 
  9.25  penalties, interest, and license fees shall be deposited by the 
  9.26  commissioner in the state treasury and credited to the general 
  9.27  fund, except that the tax revenue resulting from the increase in 
  9.28  the tax on the wholesale sales price of tobacco products from 35 
  9.29  to ... percent shall be credited to the health care access fund. 
  9.30     [EFFECTIVE DATE.] This section is effective January 1, 2005.
  9.31     Sec. 9.  [297G.041] [ADDITIONAL TAX ON ALCOHOLIC 
  9.32  BEVERAGES.] 
  9.33     Subdivision 1.  [TAX IMPOSED.] The following excise tax is 
  9.34  imposed on all alcoholic beverages, in addition to the taxes 
  9.35  imposed under sections 297G.03 and 297G.04: 
  9.36                                     Per Gallon     Per Liter 
 10.1   (1) distilled spirits, liqueurs, 
 10.2   cordials, and specialties regardless 
 10.3   of alcohol content (excluding ethyl 
 10.4   alcohol)                             $8.53          $2.25
 10.5   (2) wine regardless of alcohol 
 10.6   content                              $2.56          $0.68
 10.7   (3) fermented malt beverages
 10.8   regardless of alcohol content and
 10.9   cider                                $1.07          $0.28
 10.10     In computing the tax on a package of distilled spirits or 
 10.11  wine, a proportional tax at a like rate on all fractional parts 
 10.12  of a gallon or liter must be paid, except that the tax on a 
 10.13  fractional part of a gallon less than 1/16 of a gallon is the 
 10.14  same as for 1/16 of a gallon. 
 10.15     Subd. 2.  [REFERENCES.] All references in this chapter to 
 10.16  "the tax," "the excise tax," "the Minnesota excise tax," and 
 10.17  "the tax imposed by this chapter"  shall be construed to include 
 10.18  the tax imposed under subdivision 1 except where a different 
 10.19  meaning is clearly intended. 
 10.20     Subd. 3.  [METRIC TAX.] The metric tax is imposed on all 
 10.21  products taxable under this section when the net contents are 
 10.22  stated in metric units of measure.  The commissioner may 
 10.23  establish by rule a date and procedure for the conversion of 
 10.24  excise tax computation and reporting from rates expressed in 
 10.25  gallons to rates expressed in metric volumes.  The official 
 10.26  conversion factor is as provided in section 297G.03, subdivision 
 10.27  3. 
 10.28     [EFFECTIVE DATE.] This section is effective January 1, 2005.
 10.29     Sec. 10.  [297G.042] [PERIODIC ADJUSTMENT OF TAX ON 
 10.30  ALCOHOLIC BEVERAGES.] 
 10.31     If the commissioner of revenue, in consultation with the 
 10.32  commissioner of finance, determines an adjustment is necessary 
 10.33  under section 16A.725, the commissioner shall adjust the rates 
 10.34  of the taxes on alcoholic beverages beginning on January 1 of 
 10.35  the three calendar-year period for which the adjustment is 
 10.36  required.  The commissioner shall publish any change in rates in 
 10.37  the State Register by July 1 of the calendar year prior to that 
 10.38  in which any rate increase will be effective.  Any additional 
 10.39  revenue from a tax adjustment under this section is credited to 
 11.1   the health care access fund. 
 11.2      [EFFECTIVE DATE.] This section is effective January 1, 2005.
 11.3      Sec. 11.  Minnesota Statutes 2002, section 297G.05, 
 11.4   subdivision 1, is amended to read: 
 11.5      Subdivision 1.  [WINE AND DISTILLED SPIRITS.] A tax is 
 11.6   imposed on the use or storage by consumers of wine, cider, and 
 11.7   distilled spirits in this state, and on such consumers, at the 
 11.8   rates specified in section sections 297G.03, subdivision 1, and 
 11.9   297G.041, subdivision 1. 
 11.10     [EFFECTIVE DATE.] This section is effective January 1, 2005.
 11.11     Sec. 12.  Minnesota Statutes 2002, section 297G.05, 
 11.12  subdivision 2, is amended to read: 
 11.13     Subd. 2.  [FERMENTED MALT BEVERAGES.] A tax is imposed on 
 11.14  the use or storage by consumers of fermented malt beverages in 
 11.15  this state, and on such consumers, at the rates specified in 
 11.16  section sections 297G.04, subdivision 1, and 297G.041, 
 11.17  subdivision 1. 
 11.18     [EFFECTIVE DATE.] This section is effective January 1, 2005.
 11.19     Sec. 13.  Minnesota Statutes 2002, section 297G.10, is 
 11.20  amended to read: 
 11.21     297G.10 [DEPOSIT OF PROCEEDS.] 
 11.22     Subdivision 1.  [GENERAL FUND.] Except as provided in 
 11.23  subdivision 2, all tax revenues and other receipts payable to 
 11.24  the state under this chapter must be paid into the state 
 11.25  treasury and credited to the general fund. 
 11.26     Subd. 2.  [HEALTH CARE ACCESS FUND.] All of the revenue 
 11.27  from the tax imposed under section 297G.041, subdivision 1, must 
 11.28  be credited to the health care access fund. 
 11.29     [EFFECTIVE DATE.] This section is effective January 1, 2005.
 11.30     Sec. 14.  [FLOOR STOCKS TAX.] 
 11.31     Subdivision 1.  [CIGARETTES.] (a) A floor stocks tax is 
 11.32  imposed on every person engaged in business in this state as a 
 11.33  distributor, retailer, subjobber, vendor, manufacturer, or 
 11.34  manufacturer's representative of cigarettes, on the stamped 
 11.35  cigarettes and unaffixed stamps in the person's possession or 
 11.36  under the person's control at 12:01 a.m. on January 1, 2005.  
 12.1   The tax is imposed at the following rates, subject to the 
 12.2   discounts in Minnesota Statutes, section 297F.08, subdivision 7: 
 12.3      (1) on cigarettes weighing not more than three pounds per 
 12.4   thousand, .... mills on each cigarette; and 
 12.5      (2) on cigarettes weighing more than three pounds per 
 12.6   thousand, .. mills on each cigarette. 
 12.7      (b) Each distributor, by January 8, 2005, shall file a 
 12.8   report with the commissioner of revenue, in the form the 
 12.9   commissioner prescribes, showing the stamped cigarettes and 
 12.10  unaffixed stamps on hand at 12:01 a.m. on January 1, 2005, and 
 12.11  the amount of tax due on the cigarettes and unaffixed stamps.  
 12.12  The tax imposed by this section is due and payable by February 
 12.13  1, 2005, and after that date bears interest as provided in 
 12.14  Minnesota Statutes, section 270.75.  Each retailer, subjobber, 
 12.15  vendor, manufacturer, or manufacturer's representative shall 
 12.16  file a return with the commissioner, in the form the 
 12.17  commissioner prescribes, showing the cigarettes on hand at 12:01 
 12.18  a.m. on January 1, 2005, and pay the tax due on the cigarettes 
 12.19  by February 1, 2005.  Tax not paid by the due date bears 
 12.20  interest as provided in Minnesota Statutes, section 270.75. 
 12.21     Subd. 2.  [TOBACCO PRODUCTS.] A floor stocks tax is imposed 
 12.22  on every person engaged in business in this state as a 
 12.23  distributor of tobacco products, at the rate of .. percent of 
 12.24  the wholesale sales price of each tobacco product in the 
 12.25  person's possession or under the person's control at 12:01 a.m. 
 12.26  on January 1, 2005, and the amount of tax due on them.  The tax 
 12.27  imposed by this section, less the discount provided in Minnesota 
 12.28  Statutes, section 297F.09, subdivision 2, is due and payable by 
 12.29  February 1, 2005, and thereafter bears interest as provided in 
 12.30  Minnesota Statutes, section 270.75. 
 12.31     Subd. 3.  [AUDIT AND ENFORCEMENT.] The tax imposed by this 
 12.32  section is subject to the audit, assessment, and collection 
 12.33  provisions applicable to the taxes imposed under Minnesota 
 12.34  Statutes, chapter 297F.  The commissioner of revenue shall 
 12.35  credit the revenue from the tax imposed under this section to 
 12.36  the health care access fund in the state treasury. 
 13.1      [EFFECTIVE DATE.] This section is effective January 1, 2005.
 13.2      Sec. 15.  [REPEALER; MINNESOTACARE PROVIDER TAX.] 
 13.3      Minnesota Statutes 2002, sections 295.50, subdivision 1, 2, 
 13.4   2a, 3, 4, 6, 6a, 7, 9c, 10a, 10b, 12b, 13, 14, and 15; 295.51; 
 13.5   295.52; 295.53, subdivisions 2, 3, and 4a; 295.54; 295.55, 
 13.6   subdivisions 1, 3, 4, 5, 6, and 7; 295.56; 295.57; 295.58; 
 13.7   295.581; 295.582; and 295.59, are repealed effective January 1, 
 13.8   2005.  Minnesota Statutes 2003 Supplement, sections 295.50, 
 13.9   subdivision 9b, 295.53, subdivision 1, and 295.55, subdivision 
 13.10  2, are repealed effective January 1, 2005. 
 13.11                             ARTICLE 2 
 13.12        CONFORMING CHANGES; REPEAL OF MINNESOTA PROVIDER TAX 
 13.13     Section 1.  Minnesota Statutes 2002, section 62Q.095, 
 13.14  subdivision 6, is amended to read: 
 13.15     Subd. 6.  [EXEMPTION.] A health plan company, to the extent 
 13.16  that it operates as a staff model health plan company as defined 
 13.17  in section 295.50, subdivision 12b, by employing allied 
 13.18  independent health care providers to deliver health care 
 13.19  services to enrollees, is exempt from this section.  For 
 13.20  purposes of this subdivision, "staff model health plan company" 
 13.21  means a health plan company as defined in section 62Q.01, 
 13.22  subdivision 4, that employs one or more types of health care 
 13.23  provider to deliver health care services to the health plan 
 13.24  company's enrollees. 
 13.25     Sec. 2.  Minnesota Statutes 2002, section 214.16, 
 13.26  subdivision 2, is amended to read: 
 13.27     Subd. 2.  [BOARD COOPERATION REQUIRED.] The board shall 
 13.28  assist the commissioner of health in data collection activities 
 13.29  required under Laws 1992, chapter 549, article 7, and shall 
 13.30  assist the commissioner of revenue in activities related to 
 13.31  collection of the health care provider tax required under Laws 
 13.32  1992, chapter 549, article 9.  Upon the request of the 
 13.33  commissioner or the commissioner of revenue, the board shall 
 13.34  make available names and addresses of current licensees and 
 13.35  provide other information or assistance as needed. 
 13.36     Sec. 3.  Minnesota Statutes 2002, section 214.16, 
 14.1   subdivision 3, is amended to read: 
 14.2      Subd. 3.  [GROUNDS FOR DISCIPLINARY ACTION.] The board 
 14.3   shall take disciplinary action, which may include license 
 14.4   revocation, against a regulated person for: 
 14.5      (1) intentional failure to provide the commissioner of 
 14.6   health with the data required under chapter 62J; and 
 14.7      (2) intentional failure to provide the commissioner of 
 14.8   revenue with data on gross revenue and other information 
 14.9   required for the commissioner to implement sections 295.50 to 
 14.10  295.58; 
 14.11     (3) intentional failure to pay the health care provider tax 
 14.12  required under section 295.52; and 
 14.13     (4) entering into a contract or arrangement that is 
 14.14  prohibited under sections 62J.70 to 62J.73. 
 14.15     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
 14.16  270B.14, subdivision 1, is amended to read: 
 14.17     Subdivision 1.  [DISCLOSURE TO COMMISSIONER OF HUMAN 
 14.18  SERVICES.] (a) On the request of the commissioner of human 
 14.19  services, the commissioner shall disclose return information 
 14.20  regarding taxes imposed by chapter 290, and claims for refunds 
 14.21  under chapter 290A, to the extent provided in paragraph (b) and 
 14.22  for the purposes set forth in paragraph (c). 
 14.23     (b) Data that may be disclosed are limited to data relating 
 14.24  to the identity, whereabouts, employment, income, and property 
 14.25  of a person owing or alleged to be owing an obligation of child 
 14.26  support. 
 14.27     (c) The commissioner of human services may request data 
 14.28  only for the purposes of carrying out the child support 
 14.29  enforcement program and to assist in the location of parents who 
 14.30  have, or appear to have, deserted their children.  Data received 
 14.31  may be used only as set forth in section 256.978. 
 14.32     (d) The commissioner shall provide the records and 
 14.33  information necessary to administer the supplemental housing 
 14.34  allowance to the commissioner of human services.  
 14.35     (e) At the request of the commissioner of human services, 
 14.36  the commissioner of revenue shall electronically match the 
 15.1   Social Security numbers and names of participants in the 
 15.2   telephone assistance plan operated under sections 237.69 to 
 15.3   237.711, with those of property tax refund filers, and determine 
 15.4   whether each participant's household income is within the 
 15.5   eligibility standards for the telephone assistance plan. 
 15.6      (f) The commissioner may provide records and information 
 15.7   collected under Minnesota Statutes 2002 and 2003 Supplement, 
 15.8   sections 295.50 to 295.59, to the commissioner of human services 
 15.9   for purposes of the Medicaid Voluntary Contribution and 
 15.10  Provider-Specific Tax Amendments of 1991, Public Law 102-234.  
 15.11  Upon the written agreement by the United States Department of 
 15.12  Health and Human Services to maintain the confidentiality of the 
 15.13  data, the commissioner may provide records and information 
 15.14  collected under Minnesota Statutes 2002 and 2003 Supplement, 
 15.15  sections 295.50 to 295.59, to the Centers for Medicare and 
 15.16  Medicaid Services section of the United States Department of 
 15.17  Health and Human Services for purposes of meeting federal 
 15.18  reporting requirements. 
 15.19     (g) The commissioner may provide records and information to 
 15.20  the commissioner of human services as necessary to administer 
 15.21  the early refund of refundable tax credits. 
 15.22     (h) The commissioner may disclose information to the 
 15.23  commissioner of human services necessary to verify income for 
 15.24  eligibility and premium payment under the MinnesotaCare program, 
 15.25  under section 256L.05, subdivision 2. 
 15.26     (i) The commissioner may disclose information to the 
 15.27  commissioner of human services necessary to verify whether 
 15.28  applicants or recipients for the Minnesota family investment 
 15.29  program, general assistance, food support, and Minnesota 
 15.30  supplemental aid program have claimed refundable tax credits 
 15.31  under chapter 290 and the property tax refund under chapter 
 15.32  290A, and the amounts of the credits. 
 15.33     Sec. 5.  [REPEALER; MINNESOTACARE PROVIDER TAX.] 
 15.34     Minnesota Statutes 2002, section 13.4967, subdivision 3, is 
 15.35  repealed. 
 15.36     Sec. 6.  [EFFECTIVE DATE.] 
 16.1      Sections 1 to 5 are effective January 1, 2005.