1.1                          A bill for an act 
  1.2             relating to taxation; eliminating the requirement for 
  1.3             accelerated payment of certain cigarette taxes; 
  1.4             extending the time for offsetting overages on 
  1.5             cigarette tax returns; amending Minnesota Statutes 
  1.6             1994, sections 297.07, subdivisions 1 and 5; and 
  1.7             297.23, subdivision 4; repealing Minnesota Statutes 
  1.8             1994, section 297.07, subdivision 4. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 297.07, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [MONTHLY RETURN FILED WITH COMMISSIONER.] 
  1.13  On or before the 18th day of each calendar month every 
  1.14  distributor with a place of business in this state shall file a 
  1.15  return with the commissioner showing the quantity of cigarettes 
  1.16  manufactured or brought in from without the state or purchased 
  1.17  during the preceding calendar month and the quantity of 
  1.18  cigarettes sold or otherwise disposed of in this state and 
  1.19  outside this state during that month.  Every licensed 
  1.20  distributor outside this state shall in like manner file a 
  1.21  return showing the quantity of cigarettes shipped or transported 
  1.22  into this state during the preceding calendar month.  Returns 
  1.23  shall be made upon forms furnished and prescribed by the 
  1.24  commissioner and shall contain such other information as the 
  1.25  commissioner may require.  The return shall be accompanied by a 
  1.26  remittance for the full unpaid tax liability shown by it.  The 
  1.27  return for the May liability and 75 percent of the estimated 
  2.1   June liability is due on the date payment of the tax is due. 
  2.2      Sec. 2.  Minnesota Statutes 1994, section 297.07, 
  2.3   subdivision 5, is amended to read: 
  2.4      Subd. 5.  [OFFSET.] Upon audit, if a distributor's return 
  2.5   reflects an overage resulting from an inventory counting error, 
  2.6   the overage shall be offset against a shortage, if any, in the 
  2.7   month immediately preceding the month of the overage.  If any 
  2.8   overage remains after that offset, the remainder may only be 
  2.9   offset against a shortage, if any, in the month immediately 
  2.10  following the month of the overage.  If the commissioner 
  2.11  determines that the overage is attributable to a mistake by the 
  2.12  distributor other than an inventory counting error, the 
  2.13  commissioner may permit the overage to be offset against a 
  2.14  shortage in any month or months during the 12-month period 
  2.15  immediately following the month when the overage was discovered 
  2.16  upon audit in any month or months of the six-month period 
  2.17  beginning three months prior to the month of the erroneous 
  2.18  return and ending three months after the month of the erroneous 
  2.19  return. 
  2.20     Sec. 3.  Minnesota Statutes 1994, section 297.23, 
  2.21  subdivision 4, is amended to read: 
  2.22     Subd. 4.  All of the provisions of section 297.07, 
  2.23  subdivisions 2, 3, 4 and 5, relating to corrections of returns, 
  2.24  deficiency assessments, protests thereto, hearings thereon, 
  2.25  interest and penalties, and collections of taxes, shall be 
  2.26  applicable to consumers under the act in like manner as though 
  2.27  set out in full herein.  
  2.28     Sec. 4.  [REPEALER.] 
  2.29     Minnesota Statutes 1994, section 297.07, subdivision 4, is 
  2.30  repealed. 
  2.31     Sec. 5.  [EFFECTIVE DATE.] 
  2.32     Sections 1 to 4 are effective for returns filed after April 
  2.33  30, 1995.