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S.F. No. 134 - Cigarette Definition Modification; Tobacco Tax Collection Report (as Proposed to be Amended by the A-2 Amendment)
 
Author: Senator Kari Dziedzic
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: January 29, 2013



 

Section 1 names the act the Tobacco Uniformity Act of 2013.

Section 2 modifies the definition of “cigarette.”  Under current law, a cigarette is defined as any roll for smoking that is made of tobacco and wrapped in paper or something other than tobacco.  This bill adds an alternative definition for cigarette to include a roll weighing 4.5 pounds or less per thousand and wrapped in a substance containing tobacco, but because of its appearance, size, the type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling is likely to be considered a cigarette.

Section 3 modifies the definition of cigarette in the cigarette minimum pricing law in Minnesota Statutes, chapter 325D, to reflect the changes in section 2. 

Section 4 removes the term “little cigars” from the definition of “tobacco products.”  The change to the definition of “cigarette” in section 2 incorporates little cigars, which would be taxed as cigarettes (instead of tobacco products) under this bill. 

Sections 1 to 3 are effective for sales and purchases made after June 30, 2013.

Section 5 directs the Commissioner of Revenue to report to the legislature by January 15, 2014, on recommendations for improving the tobacco tax collection system and appropriates $100,000 to the Department of Revenue for the cost of preparing the report.  The report must provide guidance and information to the legislature on improvements to the tobacco tax collection system, including: 

• A detailed review of the present excise tax collection and compliance system for cigarettes and other tobacco products;

• A survey of other states’ or nations’ methods of collection and enforcement for cigarettes and other tobacco products, with recommendations for best practices high-technology alternatives to increase compliance; 

• An evaluation of the adequacy and effectiveness of existing penalties and other sanctions for noncompliance; and

• An evaluation of the adequacy of state resources to enforce tobacco taxes and prevention laws and recommendations on implementation of a comprehensive tobacco tax collection system that can be implemented by January 1, 2014.

 Effective the day following final enactment.

NBP:dv

 
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