2000 Minnesota Statutes

CHAPTER 297D. Marijuana and controlled substance taxation

     297D.01 Definitions. 

    Subdivision 1.  "Marijuana" means any marijuana, whether 
 real or counterfeit, as defined in section 152.01, subdivision 
 9, that is held, possessed, transported, transferred, sold, or 
 offered to be sold in violation of Minnesota laws. 

    Subd. 2.  "Controlled substance" means any drug or 
 substance, whether real or counterfeit, as defined in section 
 152.01, subdivision 4, that is held, possessed, transported, 
 transferred, sold, or offered to be sold in violation of 
 Minnesota laws.  "Controlled substance" does not include 
 marijuana.  

    Subd. 3.  "Tax obligor" or "obligor" means a person who in 
 violation of Minnesota law manufactures, produces, ships, 
 transports, or imports into Minnesota or in any manner acquires 
 or possesses more than 42-1/2 grams of marijuana, or seven or 
 more grams of any controlled substance, or ten or more dosage 
 units of any controlled substance which is not sold by weight.  
 A quantity of marijuana or other controlled substance is 
 measured by the weight of the substance whether pure or impure 
 or dilute, or by dosage units when the substance is not sold by 
 weight, in the tax obligor's possession.  A quantity of a 
 controlled substance is dilute if it consists of a detectable 
 quantity of pure controlled substance and any excipients or 
 fillers. 

    Subd. 4.  "Commissioner" means the commissioner of revenue. 

    HIST: 1986 c 470 s 4; 1987 c 330 s 2; 1991 c 291 art 9 s 31 

     297D.02 Administration. 

    The commissioner of revenue shall administer this chapter. 
 Payments required by this chapter must be made to the 
 commissioner on the form provided by the commissioner.  Tax 
 obligors are not required to give their name, address, social 
 security number, or other identifying information on the form.  
 The commissioner shall collect all taxes under this chapter. 

    HIST: 1986 c 470 s 5; 1987 c 268 art 17 s 35; 1991 c 291 art 9 
 s 32 

     297D.03 Rules. 

    The commissioner may adopt rules necessary to enforce this 
 chapter.  The commissioner shall adopt a uniform system of 
 providing, affixing, and displaying official stamps, official 
 labels, or other official indicia for marijuana and controlled 
 substances on which a tax is imposed.  

    HIST: 1986 c 470 s 6 

     297D.04 Tax payment required for possession. 

    No tax obligor may possess any marijuana or controlled 
 substance upon which a tax is imposed by section 297D.08 unless 
 the tax has been paid on the marijuana or other controlled 
 substance as evidenced by a stamp or other official indicia.  

    HIST: 1986 c 470 s 7; 1991 c 291 art 9 s 33 

     297D.05 No immunity. 

    Nothing in this chapter may in any manner provide immunity 
 for a tax obligor from criminal prosecution pursuant to 
 Minnesota law. 

    HIST: 1986 c 470 s 8; 1991 c 291 art 9 s 34 

     297D.06 Pharmaceuticals. 

    Nothing in this chapter requires persons registered under 
 chapter 151 or otherwise lawfully in possession of marijuana or 
 a controlled substance to pay the tax required under this 
 chapter. 

    HIST: 1986 c 470 s 9 

     297D.07 Measurement. 

    For the purpose of calculating the tax under section 
 297D.08, a quantity of marijuana or other controlled substance 
 is measured by the weight of the substance whether pure or 
 impure or dilute, or by dosage units when the substance is not 
 sold by weight, in the tax obligor's possession.  A quantity of 
 a controlled substance is dilute if it consists of a detectable 
 quantity of pure controlled substance and any excipients or 
 fillers. 

    HIST: 1986 c 470 s 10; 1987 c 268 art 17 s 36; 1987 c 330 s 3; 
 1987 c 384 art 3 s 48; 1991 c 291 art 9 s 35 

     297D.08 Tax rate. 

    A tax is imposed on marijuana and controlled substances as 
 defined in section 297D.01 at the following rates:  

    (1) on each gram of marijuana, or each portion of a gram, 
 $3.50; and 

    (2) on each gram of controlled substance, or portion of a 
 gram, $200; or 

    (3) on each ten dosage units of a controlled substance that 
 is not sold by weight, or portion thereof, $400. 

    HIST: 1986 c 470 s 11; 1988 c 719 art 19 s 15 

     297D.085 Credit for previously paid taxes. 

    If another state or local unit of government has previously 
 assessed an excise tax on the marijuana or controlled 
 substances, the taxpayer must pay the difference between the tax 
 due under section 297D.08 and the tax previously paid.  If the 
 tax previously paid to the other state or local unit of 
 government was equal to or greater than the tax due under 
 section 297D.08, no tax is due.  The burden is on the taxpayer 
 to show that an excise tax on the marijuana or controlled 
 substances has been paid to another state or local unit of 
 government. 

    HIST: 1989 c 277 art 1 s 25 

     297D.09 Penalties; criminal provisions. 

    Subdivision 1.    Penalties.  Any tax obligor violating 
 this chapter is subject to a penalty of 100 percent of the tax 
 in addition to the tax imposed by section 297D.08.  The penalty 
 will be collected as part of the tax. 

    Subd. 1a.    Criminal penalty; sale without affixed 
 stamps.  In addition to the tax penalty imposed, a tax obligor 
 distributing or possessing marijuana or controlled substances 
 without affixing the appropriate stamps, labels, or other 
 indicia is guilty of a crime and, upon conviction, may be 
 sentenced to imprisonment for not more than seven years or to 
 payment of a fine of not more than $14,000, or both. 

    Subd. 2.    Statute of limitations.  Notwithstanding 
 section 628.26, or any other provision of the criminal laws of 
 this state, an indictment may be found and filed, or a complaint 
 filed, upon any criminal offense specified in this section, in 
 the proper court within six years after the commission of this 
 offense.  

    HIST: 1986 c 470 s 12; 1987 c 268 art 17 s 37; 1989 c 290 art 
 6 s 2; 1991 c 291 art 9 s 36,37 

     297D.10 Stamp price. 

    Official stamps, labels, or other indicia to be affixed to 
 all marijuana or controlled substances shall be purchased from 
 the commissioner.  The purchaser shall pay 100 percent of face 
 value for each stamp, label, or other indicia at the time of the 
 purchase.  

    HIST: 1986 c 470 s 13; 1987 c 268 art 17 s 38 

     297D.11 Payment due. 

    Subdivision 1.    Stamps affixed.  When a tax obligor 
 purchases, acquires, transports, or imports into this state 
 marijuana or controlled substances on which a tax is imposed by 
 section 297D.08, and if the indicia evidencing the payment of 
 the tax have not already been affixed, the tax obligor shall 
 have them permanently affixed on the marijuana or controlled 
 substance immediately after receiving the substance.  Each stamp 
 or other official indicia may be used only once.  

    Subd. 2.    Payable on possession.  Taxes imposed upon 
 marijuana or controlled substances by this chapter are due and 
 payable immediately upon acquisition or possession in this state 
 by a tax obligor.  

    HIST: 1986 c 470 s 14; 1991 c 291 art 9 s 38 

     297D.12 All assessments are jeopardy. 

    Subdivision 1.    Assessment procedure.  An assessment 
 for a tax obligor not possessing valid stamps or other official 
 indicia showing that the tax has been paid shall be considered a 
 jeopardy assessment or collection, as provided in section 
 270.70.  The commissioner shall assess a tax and applicable 
 penalties based on personal knowledge or information available 
 to the commissioner; mail the taxpayer at the taxpayer's last 
 known address or serve in person, a written notice of the amount 
 of tax and penalty; demand its immediate payment; and, if 
 payment is not immediately made, collect the tax and penalty by 
 any method prescribed in chapter 270, except that the 
 commissioner need not await the expiration of the times 
 specified in chapter 270.  

    Subd. 2.    Injunction prohibited.  No person may bring 
 suit to enjoin the assessment or collection of any taxes, 
 interest, or penalties imposed by this chapter. 

    Subd. 3.    Standard of proof.  The tax and penalties 
 assessed by the commissioner are presumed to be valid and 
 correctly determined and assessed.  The burden is upon the 
 taxpayer to show their incorrectness or invalidity.  Any 
 statement filed by the commissioner with the court 
 administrator, or any other certificate by the commissioner of 
 the amount of tax and penalties determined or assessed is 
 admissible in evidence and is prima facie evidence of the facts 
 it contains.  

    HIST: 1986 c 470 s 15; 1987 c 268 art 17 s 39; 1991 c 291 art 
 9 s 39 

     297D.13 Confidential nature of information. 

    Subdivision 1.    Disclosure prohibited.  
 Notwithstanding any law to the contrary, neither the 
 commissioner nor a public employee may reveal facts contained in 
 a report or return required by this chapter or any information 
 obtained from a tax obligor; nor can any information contained 
 in such a report or return or obtained from a tax obligor be 
 used against the tax obligor in any criminal proceeding, unless 
 independently obtained, except in connection with a proceeding 
 involving taxes due under this chapter from the tax obligor 
 making the return.  

    Subd. 2.    Penalty for disclosure.  Any person 
 violating this section is guilty of a gross misdemeanor. 

    Subd. 3.    Statistics.  This section does not prohibit 
 the commissioner from publishing statistics that do not disclose 
 the identity of tax obligors or the contents of particular 
 returns or reports. 

    Subd. 4.    Possession of stamps.  A stamp denoting 
 payment of the tax imposed under this chapter must not be used 
 against the taxpayer in a criminal proceeding, except that the 
 stamp may be used against the taxpayer in connection with the 
 administration or civil or criminal enforcement of the tax 
 imposed under this chapter or any similar tax imposed by another 
 state or local unit of government. 

    HIST: 1986 c 470 s 16; 1987 c 268 art 17 s 40; 1989 c 277 art 
 1 s 26; 1991 c 291 art 9 s 40,41 

     297D.14 Investigatory powers. 

    For the purpose of determining the correctness of any 
 return, determining the amount of tax that should have been 
 paid, determining whether or not the tax obligor should have 
 made a return or paid taxes, or collecting any taxes under this 
 chapter, the commissioner may examine, or cause to be examined, 
 any books, papers, records, or memoranda, that may be relevant 
 to making such determinations, whether the books, papers, 
 records, or memoranda, are the property of or in the possession 
 of the tax obligor or another person.  The commissioner may 
 require the attendance of any person having knowledge or 
 information that may be relevant, compel the production of 
 books, papers, records, or memoranda by persons required to 
 attend, take testimony on matters material to the determination, 
 and administer oaths or affirmations.  Upon demand of the 
 commissioner or any examiner or investigator, the court 
 administrator of any court shall issue a subpoena for the 
 attendance of a witness or the production of books, papers, 
 records, and memoranda.  The commissioner may also issue 
 subpoenas.  Disobedience of subpoenas issued under this chapter 
 is punishable by the district court of the district in which the 
 subpoena is issued, or, if the subpoena is issued by the 
 commissioner, by the district court of the district in which the 
 party served with the subpoena is located, in the same manner as 
 contempt of district court. 

    HIST: 1986 c 470 s 17; 1991 c 291 art 9 s 42