SF 2176

as introduced - 90th Legislature (2017 - 2018) Posted on 03/17/2017 08:38am

A bill for an act
relating to taxation; tobacco; modifying the sale of cigarette stamps; amending
Minnesota Statutes 2016, sections 297F.08, subdivisions 5, 7, 8; 297F.09,
subdivision 1.

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

Section 1.

Minnesota Statutes 2016, section 297F.08, subdivision 5, is amended to read:

Subd. 5.

Deposit of proceeds.

The commissioner shall use the amounts appropriated
by law to purchase stamps for resale. The commissioner shall charge the purchasers for the
costs of the stamps along with the tax value of the stamps plus shipping costs. The costs
recovered along with shipping costs recovered must be deposited into the general fund.

EFFECTIVE DATE.

This section is effective for sales of stamps made after June 30,
2017.

Sec. 2.

Minnesota Statutes 2016, section 297F.08, subdivision 7, is amended to read:

Subd. 7.

Price of stamps.

The commissioner shall sell stamps to any person licensed
as a distributor at a discount of 0.30 percent from the face amount of the stamps purchased
in any fiscal year, except that such discount shall not apply to that portion of the face amount
of the stamps representing the cigarette sales tax as imposed under section 297F.25. The
commissioner shall not sell stamps to any other person. The commissioner may prescribe
the method of shipment of the stamps to the distributor as well as the quantities of stamps
purchased.

EFFECTIVE DATE.

This section is effective for sales of stamps made after June 30,
2017.

Sec. 3.

Minnesota Statutes 2016, section 297F.08, subdivision 8, is amended to read:

Subd. 8.

Sale of stamps.

The commissioner may sell stamps on a credit basis under
conditions prescribed by the commissioner. The commissioner shall sell the stamps at a
price which includes the tax after giving effect to the discount provided in subdivision 7.
The commissioner shall recover the actual costs of the stamps from the distributor. The
commissioner shall annually establish the maximum amount of stamps that may be purchased
each month.

EFFECTIVE DATE.

This section is effective for sales of stamps made after June 30,
2017.

Sec. 4.

Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:

Subdivision 1.

Monthly return; cigarette distributor.

On or before the 18th day of
each calendar month, a distributor with a place of business in this state shall file a return
with the commissioner showing the quantity of cigarettes manufactured or brought in from
outside the state or purchased during the preceding calendar month and the quantity of
cigarettes sold or otherwise disposed of in this state and outside this state during that month.
A licensed distributor outside this state shall in like manner file a return showing the quantity
of cigarettes shipped or transported into this state during the preceding calendar month.
Returns must be made in the form and manner prescribed by the commissioner and must
contain any other information required by the commissioner. The return must be accompanied
by a remittance for the full unpaid tax liability shown by it less 0.30 percent of the liability
on the face amount of the stamps purchased, excluding that portion of the face amount of
the stamps representing the cigarette sales tax as imposed under section 297F.25, as
compensation to reimburse the distributor for expenses incurred in the administration of
this chapter. For distributors subject to the accelerated tax payment requirements in
subdivision 10, the return for the May liability is due two business days before June 30th
of the year and the return for the June liability is due on or before August 18th of the year.

EFFECTIVE DATE.

This section is effective for sales of stamps made after June 30,
2017.