IPCPR Legislative | Minnesota

Minnesota

minnesota

Minnesota State Contact Information

Minnesota Department of Revenue
Cigarette and Tobacco Tax Unit
(651) 556-3035
cigarette.tobacco@state.mn.us

Minnesota Campaign Finance and Public Disclosure Board
Marcia Waller
(651) 539-1187
marcia.j.waller@state.mn.us

Taxation in Minnesota

Minnesota imposes a tax on all tobacco products in the state and on any person engaged in business as a distributor. The tax is imposed at the time the distributor: brings, or causes to be brought, into this state from outside the state tobacco products for sale; makes, manufactures, or fabricates tobacco products in this state for sale in this state; or ships or transports tobacco products to retailers in this state, to be sold by those retailers. The tobacco products tax may also be imposed on the use or consumption of the tobacco products in the state.

 

Minn. Stat. § 297F.05(3-4a)

 

Staff reported that Minnesota localities do not levy additional taxes on tobacco products.

The tax on tobacco products is 95% of the wholesale sales price, except that the tax on premium cigars is the lesser of 95% of the wholesale sales price or $3.50 per premium cigar.

 

Minn. Stat. § 297F.05(3-4a)

 

The “wholesale sales price” is the price at which a distributor purchases a tobacco product. Wholesale sales price includes the applicable federal excise tax, freight charges, or packaging costs, regardless of whether they were included in the purchase price.

 

Minn. Stat. § 297F.01(23)

Tobacco products distributors with a place of business in Minnesota must file a Tobacco Tax Monthly Return (Form CT-301), applicable schedules, and payment for taxes due on or before the 18th day of each month, even if no tax is due. Tobacco Tax Monthly Returns may be filed electronically through Minnesota e-Services at https://www.mndor.state.mn.us/tp/eservices/_/.

 

Minn. Stat. § 297F.09: Returns; payment of tax.

 

Additionally, consumers of untaxed tobacco products in Minnesota must file a Tobacco Use Tax Return (Form CT303), along with payment for taxes due.

 

A Minnesota Tax ID Number is required before filing a tobacco tax return. Generally, this is the same as the sales and use tax or Minnesota employer’s withholding tax number. To apply for a Minnesota tax ID number, apply online at www.revenue.state.mn.us, or call 651- 282‑5225 or 1-800-657-3605.

Minnesota Department of Revenue: Tobacco Tax Forms and Instructions
http://www.revenue.state.mn.us/businesses/tobacco/Pages/Forms.aspx

 

Form CT301: Tobacco Tax Monthly Return
http://www.revenue.state.mn.us/Forms_and_Instructions/ct301_0115.pdf

 

Form CT301-MS: Moist Snuff Tax
http://www.revenue.state.mn.us/Forms_and_Instructions/ct301ms_0115.pdf

 

Form CT301-N: Tobacco Sales on Native Reservations
http://www.revenue.state.mn.us/Forms_and_Instructions/ct301n.pdf

 

Form CT301-PC: Premium Cigar Tax
http://www.revenue.state.mn.us/Forms_and_Instructions/ct301pc.pdf

 

Form CT301-T: Tobacco Products Tax
http://www.revenue.state.mn.us/Forms_and_Instructions/ct301t.pdf

 

Form CT303: Tobacco Use Tax Return
http://www.revenue.state.mn.us/Forms_and_Instructions/ct303_0115.pdf

Definitions in Minnesota

 

“Smoking” means inhaling or exhaling smoke from any lighted cigar, cigarette, pipe, or any other lighted tobacco or plant product. Smoking also includes carrying a lighted cigar, cigarette, pipe, or any other lighted tobacco or plant product intended for inhalation.

 

Minn. Stat. § 144.413(4)

 

“Tobacco products” means any product containing, made, or derived from tobacco that is intended for human consumption, whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component, part, or accessory of a tobacco product, including, but not limited to, cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco.

 

Minn. Stat. § 297F.01(19)

 

A “premium cigar” is any cigar that is hand-constructed and hand-rolled, has a wrapper that is made entirely from whole tobacco leaf, has a filler and binder that is made entirely of tobacco, except for adhesives or other materials used to maintain size, texture, or flavor, and has a wholesale price of no less than $2.

 

Minn. Stat. § 297F.01(13a)

 

“Moist snuff” is any finely cut, ground, or powdered smokeless tobacco that is intended to be placed or dipped in the mouth.

 

Minn. Stat. § 297F.01(10b)

 

A “tobacco products distributor” is any of the following:

  • a person engaged in the business of selling tobacco products in Minnesota who brings, or causes to be brought, into the state from outside the state any tobacco products for sale
  • a person who makes, manufactures, or fabricates tobacco products in Minnesota for sale in the state
  • a person engaged in the business of selling tobacco products outside Minnesota who ships or transports tobacco products to retailers in the state, to be sold by those retailers

 

Minn. Stat. § 297F.01(20)

 

A “retailer” is a person required to be licensed under chapter 461 engaged in this state in the business of selling, or offering to sell, cigarettes or tobacco products to consumers.

 

Minn. Stat. § 297F.01(14)

 

The “wholesale sales price” is the price at which a distributor purchases a tobacco product. Wholesale sales price includes the applicable federal excise tax, freight charges, or packaging costs, regardless of whether they were included in the purchase price.

 

Minn. Stat. § 297F.01(23)

 

“Sale” means a transfer, exchange, or barter, in any manner or by any means, for consideration, and includes all sales made by any person. It also includes gifts or samples provided for advertising or promotional purposes, made by a person engaged in the selling of cigarettes or tobacco products.

 

Minn. Stat. § 297F.01(16)

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