Subdivision 1. Applicability.
Unless the language or context clearly indicates that a different
meaning is intended, the following terms for the purposes of this chapter, have the following
Subd. 2. Business.
"Business" means any trade, occupation, activity, or enterprise engaged in
selling or distributing cigarettes or tobacco products in this state.
Subd. 3. Cigarette.
"Cigarette" means any roll for smoking made wholly or in part of
tobacco, the wrapper or cover of which is made of paper or another substance or material except
Subd. 4. Cigarette distributor.
"Cigarette distributor" means any of the following:
(1) a person engaged in the business of selling cigarettes in this state and who manufactures
or who brings, or causes to be brought, into this state from outside the state any packages of
cigarettes for sale to subjobbers or retailers;
(2) a person engaged in the business outside this state who ships or transports cigarettes to
retailers in this state, to be sold by those retailers;
(3) a person who is on direct purchase from a cigarette manufacturer and applies cigarette
stamps on at least 50 percent of cigarettes sold by that person.
Subd. 5. Cigarette subjobber.
"Cigarette subjobber" means any person who acquires
stamped cigarettes or other state's stamped cigarettes for the primary purpose of resale to retailers,
and any licensed distributor who delivers, sells, or distributes stamped cigarettes from a place
of business other than that licensed in the distributor's license.
"Cigarette subjobber" also means a person who is a vending machine operator. A vending
machine operator is a person whose principal business is operating, or owning and leasing to
operators, machines for the vending of merchandise or service.
Subd. 6. Commissioner.
"Commissioner" means the state commissioner of revenue.
Subd. 7. Consumer.
"Consumer" means an individual who has title to or possession of
cigarettes or tobacco products for personal consumption rather than for sale.
Subd. 8. Internal Revenue Code.
Unless specifically defined otherwise, "Internal Revenue
Code" means the Internal Revenue Code of 1986, as amended through December 31, 1996.
Subd. 9. Licensing period.
"Licensing period" means a two-year period during which
licenses are issued. A licensing period begins on January 1 of each even-numbered year and ends
on December 31 of the following odd-numbered year.
Subd. 9a. Invoice.
"Invoice" means a detailed list of cigarettes and tobacco products
purchased or sold in this state that contains the following information:
(1) name of seller;
(2) name of purchaser;
(3) date of sale;
(4) invoice number;
(5) itemized list of goods sold including brands of cigarettes and number of cartons of each
brand, unit price, and identification of tobacco products by name, quantity, and unit price; and
(6) any rebates, discounts, or other reductions.
Subd. 10. Manufacturer.
"Manufacturer" means a person who produces and sells cigarettes
or tobacco products.
Subd. 10a. Out-of-state retailer.
"Out-of-state retailer" means a person engaged outside of
this state in the business of selling, or offering to sell, cigarettes or tobacco products to consumers
located in this state.
Subd. 11. Package.
"Package" means the individual packet, box, or other container used to
contain and convey cigarettes to the consumer.
Subd. 12. Person.
"Person" means an individual or any entity engaged in the sale of
cigarettes or tobacco products.
Subd. 13. Place of business.
"Place of business" means a place where cigarettes or tobacco
products are sold or where cigarettes or tobacco products are manufactured, stored, or kept for the
purpose of sale or consumption, including any vessel, vehicle, airplane, train, or vending machine.
Subd. 14. Retailer.
"Retailer" means a person required to be licensed under chapter 461
engaged in this state in the business of selling, or offering to sell, cigarettes or tobacco products to
Subd. 15. Retail outlet.
"Retail outlet" means each place of business from which cigarettes
or tobacco products are sold to consumers.
Subd. 16. Sale.
"Sale" means a transfer, exchange, or barter, in any manner or by any means,
for consideration, and includes all sales made by any person. It also includes gifts or samples
provided for advertising or promotional purposes, made by a person engaged in the selling of
cigarettes or tobacco products.
Subd. 17. Stamp.
"Stamp" means the adhesive stamp supplied by the commissioner of
revenue for use on cigarette packages or any other indicia adopted by the commissioner to
indicate that the tax has been paid.
Subd. 18. Storage.
"Storage" means any keeping or retention of cigarettes or tobacco
products for use or consumption in this state.
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; 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.
Subd. 20. Tobacco products distributor.
"Tobacco products distributor" means any of
(1) a person engaged in the business of selling tobacco products in this state who brings, or
causes to be brought, into this state from outside the state any tobacco products for sale;
(2) a person who makes, manufactures, or fabricates tobacco products in this state for sale in
(3) a person engaged in the business of selling tobacco products outside this state who ships
or transports tobacco products to retailers in this state, to be sold by those retailers.
Subd. 21. Tobacco products subjobber.
"Tobacco products subjobber" means a person,
other than a manufacturer or distributor, who buys from a distributor tobacco products upon which
the tax imposed by this chapter has been paid and sells them to persons other than the ultimate
consumers, and any licensed distributor who delivers, sells, or distributes tobacco products upon
which the tax imposed by this chapter has been paid from a place of business other than that
licensed in the distributor's license.
Subd. 21a. Unlicensed seller.
"Unlicensed seller" means anyone who is not licensed under
to sell the particular product to the purchaser or possessor of the product.
Subd. 22. Use.
"Use" means the exercise of a right or power incidental to the ownership
of cigarettes or tobacco products.
Subd. 22a. Weighted average retail price.
"Weighted average retail price" means (1) the
average retail price per pack of 20 cigarettes, with the average price weighted by the number of
packs sold at each price, (2) reduced by the sales tax included in the retail price, and (3) adjusted
for the expected inflation from the time of the survey to the average of the 12 months that the
sales tax will be imposed. The commissioner shall make the inflation adjustment in accordance
with the Consumer Price Index for all urban consumers inflation indicator as published in the
most recent state budget forecast. The inflation factor for the calendar year in which the new tax
rate takes effect must be used. If the survey indicates that the average retail price of cigarettes has
not increased relative to the average retail price in the previous year's survey, then no inflation
adjustment must be made.
Subd. 23. Wholesale sales price.
"Wholesale sales price" means the price stated on the price
list in effect at the time of sale for which a manufacturer or person sells a tobacco product to a
distributor, exclusive of any discount, promotional offer, or other reduction. For purposes of this
subdivision, "price list" means the manufacturer's price at which tobacco products are made
available for sale to all distributors on an ongoing basis.
History: 1997 c 106 art 1 s 1; 1999 c 243 art 7 s 9; 2000 c 490 art 10 s 7-11; 2003 c 127 art
7 s 4,5; 1Sp2005 c 3 art 6 s 11; 2006 c 259 art 7 s 5