1.1 	A bill for an act
1.2 	relating to taxation; tobacco; modernizing the definition of tobacco products; 
1.3 	adding a definition for moist snuff;amending Minnesota Statutes 2010, sections 
1.4 	297F.01, subdivision 19, by adding a subdivision; 297F.05, subdivisions 3, 4; 
1.5 	297F.09, subdivisions 2, 3.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2010, section 297F.01, is amended by adding a 
1.8 	subdivision to read:
1.9 		Subd. 10b.Moist snuff. "Moist snuff" means any finely cut, ground, or powdered 
1.10 	smokeless tobacco that is intended to be placed or dipped in the oral cavity, but does 
1.11 	not include any finely cut, ground, or powdered tobacco that is intended to be placed 
1.12 	in the nasal cavity.

1.13 	EFFECTIVE DATE. This section is effective July 1, 2011.

1.14 	Sec. 2. Minnesota Statutes 2010, section 297F.01, subdivision 19, is amended to read:
1.15 		Subd. 19.Tobacco products. "Tobacco products" means any product containing, 
1.16 	made, or derived from tobacco that is intended for human consumption, whether 
1.17 	chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any 
1.18 	other means, or any component, part, or accessory of a tobacco product, including, but 
1.19 	not limited to, cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, 
1.20 	crimp cut, ready rubbed, and other smoking tobacco; snuff, including moist snuff; snuff 
1.21 	flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobacco; shorts; 
1.22 	refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms 
1.23 	of tobacco; but does not include cigarettes as defined in this section. Tobacco products 
2.1 	excludes any tobacco product that has been approved by the United States Food and 
2.2 	Drug Administration for sale as a tobacco cessation product, as a tobacco dependence 
2.3 	product, or for other medical purposes, and is being marketed and sold solely for such an 
2.4 	approved purpose.

2.5 	EFFECTIVE DATE. This section is effective July 1, 2011.

2.6 	Sec. 3. Minnesota Statutes 2010, section 297F.05, subdivision 3, is amended to read:
2.7 		Subd. 3.Rates; tobacco products. (a) A tax is imposed upon all tobacco products 
2.8 	in this state and upon any person engaged in business as a distributor, at the rate rates of:
2.9 	(1) 35 percent of the wholesale sales price of the tobacco products. other than moist 
2.10 	snuff; or
2.11 	(2) for moist snuff, at the rate of $1.45 per ounce, and a proportionate rate for any 
2.12 	other quantity or fractional part in excess of 1.2 ounces. The tax imposed on a can or 
2.13 	package of moist snuff that weighs less than 1.2 ounces shall be equal to the amount of tax 
2.14 	imposed on a can or package of moist snuff that weighs 1.2 ounces.
2.15 	(b) The tax is imposed at the time the distributor:
2.16 	(1) brings, or causes to be brought, into this state from outside the state tobacco 
2.17 	products for sale;
2.18 	(2) makes, manufactures, or fabricates tobacco products in this state for sale in 
2.19 	this state; or
2.20 	(3) ships or transports tobacco products to retailers in this state, to be sold by those 
2.21 	retailers.

2.22 	EFFECTIVE DATE. This section is effective July 1, 2011.

2.23 	Sec. 4. Minnesota Statutes 2010, section 297F.05, subdivision 4, is amended to read:
2.24 		Subd. 4.Use tax; tobacco products. A tax is imposed upon the use or storage by 
2.25 	consumers of tobacco products in this state, and upon such consumers, at the rate rates of:
2.26 	(1) 35 percent of the cost to the consumer of the tobacco products. other than moist 
2.27 	snuff; and
2.28 	(2) for moist snuff, at the rate of $1.45 per ounce, and a proportionate rate for any 
2.29 	other quantity or fractional part in excess of 1.2 ounces. The tax imposed on a can or 
2.30 	package of moist snuff that weighs less than 1.2 ounces shall be equal to the amount of tax 
2.31 	imposed on a can or package of moist snuff that weighs 1.2 ounces.

2.32 	EFFECTIVE DATE. This section is effective July 1, 2011.

3.1 	Sec. 5. Minnesota Statutes 2010, section 297F.09, subdivision 2, is amended to read:
3.2 		Subd. 2.Monthly return; tobacco products distributor. On or before the 18th 
3.3 	day of each calendar month, a distributor with a place of business in this state shall file 
3.4 	a return with the commissioner showing the quantity and wholesale sales price of each 
3.5 	tobacco product, including the number of ounces of moist snuff tobacco:
3.6 	(1) brought, or caused to be brought, into this state for sale; and
3.7 	(2) made, manufactured, or fabricated in this state for sale in this state, during the 
3.8 	preceding calendar month.
3.9 	Every licensed distributor outside this state shall in like manner file a return showing the 
3.10 	quantity and wholesale sales price of each tobacco product, including the number of 
3.11 	ounces of moist snuff tobacco, shipped or transported to retailers in this state to be sold by 
3.12 	those retailers, during the preceding calendar month. Returns must be made in the form 
3.13 	and manner prescribed by the commissioner and must contain any other information 
3.14 	required by the commissioner. The return must be accompanied by a remittance for the full 
3.15 	tax liability shown. For distributors subject to the accelerated tax payment requirements in 
3.16 	subdivision 10, the return for the May liability is due two business days before June 30th 
3.17 	of the year and the return for the June liability is due on or before August 18th of the year.

3.18 	EFFECTIVE DATE. This section is effective July 1, 2011.

3.19 	Sec. 6. Minnesota Statutes 2010, section 297F.09, subdivision 3, is amended to read:
3.20 		Subd. 3.Use tax return; cigarette or tobacco products consumer. On or before 
3.21 	the 18th day of each calendar month, a consumer who, during the preceding calendar 
3.22 	month, has acquired title to or possession of cigarettes or tobacco products for use or 
3.23 	storage in this state, upon which cigarettes or tobacco products the tax imposed by 
3.24 	this chapter has not been paid, shall file a return with the commissioner showing the 
3.25 	quantity of cigarettes or tobacco products, including the number of ounces of moist snuff 
3.26 	tobacco, so acquired. The return must be made in the form and manner prescribed by the 
3.27 	commissioner, and must contain any other information required by the commissioner. The 
3.28 	return must be accompanied by a remittance for the full unpaid tax liability shown by it.

3.29 	EFFECTIVE DATE. This section is effective July 1, 2011.