Minnesota Legislature
Office of the Revisor of Statutes
2006 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
297F.24 FEE IN LIEU OF SETTLEMENT.
Subdivision 1. Fee imposed. (a) A fee is imposed upon the sale of nonsettlement cigarettes
in this state, upon having nonsettlement 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 of
nonsettlement cigarettes. The fee equals a rate of 1.75 cents per cigarette.
(b) The purpose of this fee is to:
(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that are
comparable to costs attributable to the use of the cigarettes;
(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's policy
of discouraging underage smoking by offering nonsettlement cigarettes at prices substantially
below the cigarettes of other manufacturers; and
(3) fund such other purposes as the legislature determines appropriate.
Subd. 2. Nonsettlement cigarettes. For purposes of this section, a "nonsettlement cigarette"
means a cigarette manufactured by a person other than a manufacturer that:
(1) is making annual payments to the state of Minnesota under a settlement of the lawsuit
styled as State v. Philip Morris Inc., No. C1-94-8565 (Minnesota District Court, Second Judicial
District), if the style of cigarettes is included in computation of the payments under the agreement;
or
(2) has voluntarily entered into an agreement with the state of Minnesota, approved by
the attorney general, agreeing to terms similar to those contained in the settlement agreement,
identified in clause (1) including making annual payments to the state, with respect to its national
sales of the style of cigarettes, equal to at least 75 percent of the payments that would apply if
the manufacturer was one of the four original parties to the settlement agreement required to
make annual payments to the state.
Subd. 3. Collection and administration. The commissioner shall administer the fee under
this section in the same manner as the excise tax imposed under section 297F.05 and all of the
provisions of this chapter apply as if the fee were a tax imposed under section 297F.05. The
commissioner shall deposit the proceeds of the fee in the general fund.
History: 2003 c 127 art 14 s 9
Subdivision 1. Fee imposed. (a) A fee is imposed upon the sale of nonsettlement cigarettes
in this state, upon having nonsettlement 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 of
nonsettlement cigarettes. The fee equals a rate of 1.75 cents per cigarette.
(b) The purpose of this fee is to:
(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that are
comparable to costs attributable to the use of the cigarettes;
(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's policy
of discouraging underage smoking by offering nonsettlement cigarettes at prices substantially
below the cigarettes of other manufacturers; and
(3) fund such other purposes as the legislature determines appropriate.
Subd. 2. Nonsettlement cigarettes. For purposes of this section, a "nonsettlement cigarette"
means a cigarette manufactured by a person other than a manufacturer that:
(1) is making annual payments to the state of Minnesota under a settlement of the lawsuit
styled as State v. Philip Morris Inc., No. C1-94-8565 (Minnesota District Court, Second Judicial
District), if the style of cigarettes is included in computation of the payments under the agreement;
or
(2) has voluntarily entered into an agreement with the state of Minnesota, approved by
the attorney general, agreeing to terms similar to those contained in the settlement agreement,
identified in clause (1) including making annual payments to the state, with respect to its national
sales of the style of cigarettes, equal to at least 75 percent of the payments that would apply if
the manufacturer was one of the four original parties to the settlement agreement required to
make annual payments to the state.
Subd. 3. Collection and administration. The commissioner shall administer the fee under
this section in the same manner as the excise tax imposed under section 297F.05 and all of the
provisions of this chapter apply as if the fee were a tax imposed under section 297F.05. The
commissioner shall deposit the proceeds of the fee in the general fund.
History: 2003 c 127 art 14 s 9
Official Publication of the State of Minnesota
Revisor of Statutes