You do not have to calculate penalty and interest on your cigarette purchases. However, penalty and/or interest may be charged after you have submitted your return and payment. If you would like to calculate penalty and/or interest on your purchases, the instructions for Form CT203, Cigarette Use Tax Return have the information on how to calculate these items.
An abatement is removal of penalty from your tax assessment. You may request an abatement from the Department of Revenue by sending a letter with your request and reason for requesting the abatement of penalty with a reason why it should be abated. The Department will review the request and notify you of the decision.
The Non-Settlement Fee, also known as the Fee in Lieu of Settlement, is a fee associated with cigarettes produced by all manufacturers except Philip Morris, R.J. Reynolds, Lorillard, or Liggett.
The fee does not apply to cigarettes produced by these manufacturers because they have entered into a settlement agreement with the State of Minnesota and make annual payments to the state.
There is a list available of current manufacturers and their brands. You may use this list to identify brands and who manufactures them. If they are not manufactured by one of the four companies listed above, you will have to pay the Fee in Lieu of Settlement on them.
