Tobacco products sold in Minnesota are going to get a bit more expensive in the new year. Beginning January 1, 2016, excise and sales taxes on cigarettes and most snuff are increasing.
Cigarettes
Effective January 1, 2016, the cigarette excise tax rate is 15 cents (150 mills) per cigarette and the sales tax on cigarettes is 54.3 cents per 20-pack. The sales tax should be adjusted proportionally for packages with different cigarette quantities.
Moist snuff
The 2016 moist snuff excise tax rate (for sales on or after January 1, 2016) is $3.00 per container or 95% of the wholesale sales price. This is a 10-cent increase over the 2015 moist snuff excise tax rate.
License renewal
Anyone planning to distribute or sell tobacco products in Minnesota during 2016-2017 is required to “renew their Tobacco Tax license and pay the required fee” by November 16, 2015.
Applicable fees should be submitted to the Minnesota Department of Revenue along with a completed License Application for Tobacco Products Distributors and Subjobbers. Additional information is available here.
