1.1 	A bill for an act
1.2 	relating to taxation; limiting the tax on cigars;amending Minnesota Statutes 
1.3 	2008, section 297F.05, subdivision 3.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2008, section 297F.05, subdivision 3, is amended to read:
1.6 		Subd. 3.Rates; tobacco products. (a) Subject to paragraph (b), a tax is imposed 
1.7 	upon all tobacco products in this state and upon any person engaged in business as a 
1.8 	distributor, at the rate of 35 percent of the wholesale sales price of the tobacco products. 
1.9 	The tax is imposed at the time the distributor:
1.10 	(1) brings, or causes to be brought, into this state from outside the state tobacco 
1.11 	products for sale;
1.12 	(2) makes, manufactures, or fabricates tobacco products in this state for sale in 
1.13 	this state; or
1.14 	(3) ships or transports tobacco products to retailers in this state, to be sold by those 
1.15 	retailers.
1.16 	(b) The taxes imposed under this subdivision and subdivision 4 may not exceed 
1.17 	25 cents per cigar.

1.18 	EFFECTIVE DATE. This section is effective July 1, 2009.