Bill Text: MN SF791 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Tobacco products definitions addition and modification; nonsettlement cigarettes fee increase
Sponsorship: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2013-03-04 - Author added Nelson [SF791 Detail]
Download: Minnesota-2013-SF791-Introduced.html
1.2relating to tobacco taxes; updating the definition of tobacco products and
1.3adding a definition for moist snuff; increasing the fee imposed on the sale of
1.4nonsettlement cigarettes;amending Minnesota Statutes 2012, sections 297F.01,
1.5subdivision 19, by adding subdivisions; 297F.05, subdivisions 3, 4; 297F.09,
1.6subdivisions 2, 3; 297F.24, subdivision 1.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 297F.01, is amended by adding a
1.9subdivision to read:
1.10 Subd. 9b. Little cigar. "Little cigar" means any roll for smoking made in whole
1.11or in part of tobacco if the product is wrapped in a substance containing tobacco other
1.12than natural leaf tobacco, uses an integrated cellulose acetate or other similar filter, and
1.13weighs not more than four and one-half pounds per thousand.
1.14 Sec. 2. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision
1.15to read:
1.16 Subd. 10b. Moist snuff. "Moist snuff" means finely cut, ground, or powdered
1.17tobacco that is not intended to be smoked, but shall not include finely cut, ground, or
1.18powdered tobacco that is intended to be placed in the nasal cavity.
1.19 Sec. 3. Minnesota Statutes 2012, section 297F.01, subdivision 19, is amended to read:
1.20 Subd. 19. Tobacco products. "Tobacco products" means any product containing,
1.21made, or derived from tobacco that is intended for human consumption, whether chewed,
1.22smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means,
1.23or any component, part, or accessory of a tobacco product, including, but not limited to,
2.1cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready
2.2rubbed, and other smoking tobacco; snuff, including moist snuff; snuff flour; cavendish;
2.3plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings,
2.4cuttings and sweepings of tobacco, and other kinds and forms of tobacco; but does not
2.5include cigarettes as defined in this section. Tobacco products excludes any tobacco
2.6product that has been approved by the United States Food and Drug Administration for
2.7sale as a tobacco cessation product, as a tobacco dependence product, or for other medical
2.8purposes, and is being marketed and sold solely for such an approved purpose.
2.9 Sec. 4. Minnesota Statutes 2012, section 297F.05, subdivision 3, is amended to read:
2.10 Subd. 3. Rates; tobacco products. (a) A tax is imposed upon all tobacco products
2.11in this state and upon any person engaged in business as a distributor, at therate rates of:
2.12(1) 35 percent of the wholesale sales price of the tobacco products. other than moist
2.13snuff and little cigars;
2.14(2) for moist snuff, at the rate of $....... per ounce, and a proportionate rate for any
2.15other quantity or fractional part in excess of 1.2 ounces. The tax imposed on a can or
2.16package of moist snuff that weighs less than 1.2 ounces shall be equal to the amount of tax
2.17imposed on a can or package of moist snuff that weighs 1.2 ounces; and
2.18(3) for little cigars, the tax on each little cigar shall be equal to the tax imposed per
2.19cigarette under subdivision 1, clause (1); section 256.9658, subdivision 3, paragraph (a),
2.20clause (1); and any successor provision taxing cigarettes.
2.21(b) The tax is imposed at the time the distributor:
2.22(1) brings, or causes to be brought, into this state from outside the state tobacco
2.23products for sale;
2.24(2) makes, manufactures, or fabricates tobacco products in this state for sale in
2.25this state; or
2.26(3) ships or transports tobacco products to retailers in this state, to be sold by those
2.27retailers.
2.28 Sec. 5. Minnesota Statutes 2012, section 297F.05, subdivision 4, is amended to read:
2.29 Subd. 4. Use tax; tobacco products. A tax is imposed upon the use or storage by
2.30consumers of tobacco products in this state, and upon such consumers, at therate rates of:
2.31(1) 35 percent of the cost to the consumer of the tobacco products. other than moist
2.32snuff and little cigars;
2.33(2) for moist snuff, at the rate of $....... per ounce, and a proportionate rate for any
2.34other quantity or fractional part in excess of 1.2 ounces. The tax imposed on a can or
3.1package of moist snuff that weighs less than 1.2 ounces shall be equal to the amount of tax
3.2imposed on a can or package of moist snuff that weighs 1.2 ounces; and
3.3(3) for little cigars, the tax on each little cigar shall be equal to the tax imposed per
3.4cigarette under subdivision 1, clause (1); section 256.9658, subdivision 3, paragraph (a),
3.5clause (1); and any successor provision taxing cigarettes.
3.6 Sec. 6. Minnesota Statutes 2012, section 297F.09, subdivision 2, is amended to read:
3.7 Subd. 2. Monthly return; tobacco products distributor. On or before the 18th
3.8day of each calendar month, a distributor with a place of business in this state shall file
3.9a return with the commissioner showing the quantity and wholesale sales price of each
3.10tobacco product, including the number of ounces of moist snuff tobacco:
3.11(1) brought, or caused to be brought, into this state for sale; and
3.12(2) made, manufactured, or fabricated in this state for sale in this state, during the
3.13preceding calendar month.
3.14 Every licensed distributor outside this state shall in like manner file a return showing
3.15the quantity and wholesale sales price of each tobacco product, including the number of
3.16ounces of moist snuff tobacco, shipped or transported to retailers in this state to be sold by
3.17those retailers, during the preceding calendar month. Returns must be made in the form
3.18and manner prescribed by the commissioner and must contain any other information
3.19required by the commissioner. The return must be accompanied by a remittance for the full
3.20tax liability shown. For distributors subject to the accelerated tax payment requirements in
3.21subdivision 10, the return for the May liability is due two business days before June 30th
3.22of the year and the return for the June liability is due on or before August 18th of the year.
3.23 Sec. 7. Minnesota Statutes 2012, section 297F.09, subdivision 3, is amended to read:
3.24 Subd. 3. Use tax return; cigarette or tobacco products consumer. On or before
3.25the 18th day of each calendar month, a consumer who, during the preceding calendar
3.26month, has acquired title to or possession of cigarettes or tobacco products for use or
3.27storage in this state, upon which cigarettes or tobacco products the tax imposed by
3.28this chapter has not been paid, shall file a return with the commissioner showing the
3.29quantity of cigarettes or tobacco products, including the number of ounces of moist snuff
3.30tobacco, so acquired. The return must be made in the form and manner prescribed by the
3.31commissioner, and must contain any other information required by the commissioner. The
3.32return must be accompanied by a remittance for the full unpaid tax liability shown by it.
3.33 Sec. 8. Minnesota Statutes 2012, section 297F.24, subdivision 1, is amended to read:
4.1 Subdivision 1. Fee imposed. (a) A fee is imposed upon the sale of nonsettlement
4.2cigarettes in this state, upon having nonsettlement cigarettes in possession in this state
4.3with intent to sell, upon any person engaged in business as a distributor, and upon the
4.4use or storage by consumers of nonsettlement cigarettes. The fee equals a rate of1.75
4.5 2.75 cents per cigarette.
4.6(b) The purpose of this fee is to:
4.7(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that
4.8are comparable to costs attributable to the use of the cigarettes;
4.9(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's
4.10policy of discouraging underage smoking by offering nonsettlement cigarettes at prices
4.11substantially below the cigarettes of other manufacturers; and
4.12(3) fund such other purposes as the legislature determines appropriate.
4.13 Sec. 9. EFFECTIVE DATE.
4.14Sections 1 to 8 are effective July 1, 2013.
1.3adding a definition for moist snuff; increasing the fee imposed on the sale of
1.4nonsettlement cigarettes;amending Minnesota Statutes 2012, sections 297F.01,
1.5subdivision 19, by adding subdivisions; 297F.05, subdivisions 3, 4; 297F.09,
1.6subdivisions 2, 3; 297F.24, subdivision 1.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 297F.01, is amended by adding a
1.9subdivision to read:
1.10 Subd. 9b. Little cigar. "Little cigar" means any roll for smoking made in whole
1.11or in part of tobacco if the product is wrapped in a substance containing tobacco other
1.12than natural leaf tobacco, uses an integrated cellulose acetate or other similar filter, and
1.13weighs not more than four and one-half pounds per thousand.
1.14 Sec. 2. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision
1.15to read:
1.16 Subd. 10b. Moist snuff. "Moist snuff" means finely cut, ground, or powdered
1.17tobacco that is not intended to be smoked, but shall not include finely cut, ground, or
1.18powdered tobacco that is intended to be placed in the nasal cavity.
1.19 Sec. 3. Minnesota Statutes 2012, section 297F.01, subdivision 19, is amended to read:
1.20 Subd. 19. Tobacco products. "Tobacco products" means any product containing,
1.21made, or derived from tobacco that is intended for human consumption, whether chewed,
1.22smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means,
1.23or any component, part, or accessory of a tobacco product, including, but not limited to,
2.1cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready
2.2rubbed, and other smoking tobacco; snuff, including moist snuff; snuff flour; cavendish;
2.3plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings,
2.4cuttings and sweepings of tobacco, and other kinds and forms of tobacco; but does not
2.5include cigarettes as defined in this section. Tobacco products excludes any tobacco
2.6product that has been approved by the United States Food and Drug Administration for
2.7sale as a tobacco cessation product, as a tobacco dependence product, or for other medical
2.8purposes, and is being marketed and sold solely for such an approved purpose.
2.9 Sec. 4. Minnesota Statutes 2012, section 297F.05, subdivision 3, is amended to read:
2.10 Subd. 3. Rates; tobacco products. (a) A tax is imposed upon all tobacco products
2.11in this state and upon any person engaged in business as a distributor, at the
2.12(1) 35 percent of the wholesale sales price of the tobacco products
2.13snuff and little cigars;
2.14(2) for moist snuff, at the rate of $....... per ounce, and a proportionate rate for any
2.15other quantity or fractional part in excess of 1.2 ounces. The tax imposed on a can or
2.16package of moist snuff that weighs less than 1.2 ounces shall be equal to the amount of tax
2.17imposed on a can or package of moist snuff that weighs 1.2 ounces; and
2.18(3) for little cigars, the tax on each little cigar shall be equal to the tax imposed per
2.19cigarette under subdivision 1, clause (1); section 256.9658, subdivision 3, paragraph (a),
2.20clause (1); and any successor provision taxing cigarettes.
2.21(b) The tax is imposed at the time the distributor:
2.22(1) brings, or causes to be brought, into this state from outside the state tobacco
2.23products for sale;
2.24(2) makes, manufactures, or fabricates tobacco products in this state for sale in
2.25this state; or
2.26(3) ships or transports tobacco products to retailers in this state, to be sold by those
2.27retailers.
2.28 Sec. 5. Minnesota Statutes 2012, section 297F.05, subdivision 4, is amended to read:
2.29 Subd. 4. Use tax; tobacco products. A tax is imposed upon the use or storage by
2.30consumers of tobacco products in this state, and upon such consumers, at the
2.31(1) 35 percent of the cost to the consumer of the tobacco products
2.32snuff and little cigars;
2.33(2) for moist snuff, at the rate of $....... per ounce, and a proportionate rate for any
2.34other quantity or fractional part in excess of 1.2 ounces. The tax imposed on a can or
3.1package of moist snuff that weighs less than 1.2 ounces shall be equal to the amount of tax
3.2imposed on a can or package of moist snuff that weighs 1.2 ounces; and
3.3(3) for little cigars, the tax on each little cigar shall be equal to the tax imposed per
3.4cigarette under subdivision 1, clause (1); section 256.9658, subdivision 3, paragraph (a),
3.5clause (1); and any successor provision taxing cigarettes.
3.6 Sec. 6. Minnesota Statutes 2012, section 297F.09, subdivision 2, is amended to read:
3.7 Subd. 2. Monthly return; tobacco products distributor. On or before the 18th
3.8day of each calendar month, a distributor with a place of business in this state shall file
3.9a return with the commissioner showing the quantity and wholesale sales price of each
3.10tobacco product, including the number of ounces of moist snuff tobacco:
3.11(1) brought, or caused to be brought, into this state for sale; and
3.12(2) made, manufactured, or fabricated in this state for sale in this state, during the
3.13preceding calendar month.
3.14 Every licensed distributor outside this state shall in like manner file a return showing
3.15the quantity and wholesale sales price of each tobacco product, including the number of
3.16ounces of moist snuff tobacco, shipped or transported to retailers in this state to be sold by
3.17those retailers, during the preceding calendar month. Returns must be made in the form
3.18and manner prescribed by the commissioner and must contain any other information
3.19required by the commissioner. The return must be accompanied by a remittance for the full
3.20tax liability shown. For distributors subject to the accelerated tax payment requirements in
3.21subdivision 10, the return for the May liability is due two business days before June 30th
3.22of the year and the return for the June liability is due on or before August 18th of the year.
3.23 Sec. 7. Minnesota Statutes 2012, section 297F.09, subdivision 3, is amended to read:
3.24 Subd. 3. Use tax return; cigarette or tobacco products consumer. On or before
3.25the 18th day of each calendar month, a consumer who, during the preceding calendar
3.26month, has acquired title to or possession of cigarettes or tobacco products for use or
3.27storage in this state, upon which cigarettes or tobacco products the tax imposed by
3.28this chapter has not been paid, shall file a return with the commissioner showing the
3.29quantity of cigarettes or tobacco products, including the number of ounces of moist snuff
3.30tobacco, so acquired. The return must be made in the form and manner prescribed by the
3.31commissioner, and must contain any other information required by the commissioner. The
3.32return must be accompanied by a remittance for the full unpaid tax liability shown by it.
3.33 Sec. 8. Minnesota Statutes 2012, section 297F.24, subdivision 1, is amended to read:
4.1 Subdivision 1. Fee imposed. (a) A fee is imposed upon the sale of nonsettlement
4.2cigarettes in this state, upon having nonsettlement cigarettes in possession in this state
4.3with intent to sell, upon any person engaged in business as a distributor, and upon the
4.4use or storage by consumers of nonsettlement cigarettes. The fee equals a rate of
4.5 2.75 cents per cigarette.
4.6(b) The purpose of this fee is to:
4.7(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that
4.8are comparable to costs attributable to the use of the cigarettes;
4.9(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's
4.10policy of discouraging underage smoking by offering nonsettlement cigarettes at prices
4.11substantially below the cigarettes of other manufacturers; and
4.12(3) fund such other purposes as the legislature determines appropriate.
4.13 Sec. 9. EFFECTIVE DATE.
4.14Sections 1 to 8 are effective July 1, 2013.
