How do I request an abatement?Back to top
You can request an abatement (a reduction or cancellation of your penalty) from the department by sending us a letter explaining why you should get one.
Which forms do I have to submit?Back to top
All Minnesota resident distributors must submit the following forms:
- CT201 Cigarette Tax Monthly Return
- CT201-F Monthly Cigarette Fee
- CT201-I Cigarette Inventory
- CT201-R Cigarette Reconciliation
Minnesota resident distributors might also have to submit the following forms depending on your business circumstances:
- CT201-A Unstamped/Other-State Stamped Cigarettes Received During the Month
- CT201-B Credit for Returned Cigarettes
- CT201-C Out-of-State Cigarette Sales
- CT201-N Cigarette Sales on Native Reservations
- CT201-S Minnesota Stamped Cigarettes Received
All nonresident distributors must submit the following forms:
- CT401 Cigarette Tax Monthly Return
- CT401-F Monthly Cigarette Fee
- CT401-I Cigarette Inventory
- CT401-R Cigarette Reconciliation
Nonresident distributors might also have to submit the following forms depending on your business circumstances:
- CT401-B Credit for Returned Cigarettes
- CT401-C Minnesota Cigarette Sales
- CT401-N Cigarettes Sales on Native Reservations
When are my Cigarette Tax returns due?Back to top
On or before the 18th of the month following the end of the reporting month. We consider the postmark date to be the filing date. If the due date falls on a weekend or legal holiday, you can mail your payments or send them electronically on the next business day. If you owe accelerated tax, see accelerated tax for more information on due dates.
What are the interest and penalty rates?Back to top
Interest
You must pay interest on unpaid taxes and fees plus any penalties from the date the tax was due until it is paid in full.
To figure out how much interest you owe, use the following formula with the appropriate interest rate.
Interest = (Tax + Fee + Penalty) x number days late x interest rate / 365
| Interest Rates |
| Year |
Rate |
Year |
Rate |
Year |
Rate |
| 2012 |
3% |
2008 |
8% |
2004 |
4% |
| 2011 |
3% |
2007 |
8% |
2003 |
5% |
| 2010 |
3% |
2006 |
6% |
2002 |
7% |
| 2009 |
5% |
2005 |
4% |
|
|
Penalties
- Late payment penalty. The late payment penalty is 5 percent of the unpaid tax for each 30 days the payment is late up to 15 percent.
- Late filing penalty. The late filing penalty is 5 percent of the unpaid tax.
- Method penalty. The method penalty is 5 percent of each payment you should have submitted electronically.
- Repeat penalty. The repeat penalty is for continual late payments. It's 25 percent of the unpaid tax.
- Accelerated payment penalty. The accelerated payment penalty is 10 percent of the June liability, less the amount paid in June. There's no penalty, though, if you your June payment is 90 percent of your May liability or 90 percent of your June liability, whichever is less.
How do I know you received my stamp order?Back to top
Call us at 651-556-3035.
Can I use a carrier that is not UPS for cigarette stamps?Back to top
No. We only ship Cigarette Tax stamps through UPS. However, you may use an armored car service or pick up stamps yourself at the Department of Revenue.
What is the Cigarette Tax breakdown for settlement and non-settlement brands? (Settlement brands are those whose manufacturers make annual payments to Minnesota stemming from the settlement of the state's lawsuit against tobacco companies).Back to top
| Settlement Brands |
Per Carton |
Per Pack |
|
| Cigarette Tax |
$4.80 |
$0.48 |
|
| Health Impact Fee |
$7.50 |
$0.75 |
|
| Cigarette Sales Tax |
$3.70 |
$0.370 |
|
| Fee on Non-Settlement Brands |
$0.00 |
$0.00 |
|
| |
$16.00 |
$1.600 |
Price/Stamp |
| |
|
$0.0800 |
Price/Cigarette |
| |
|
$2.000 |
Price/25's |
| |
|
|
|
| Non-Settlement Brands |
Per Carton |
Per Pack |
|
| Cigarette Tax |
$4.80 |
$0.48 |
|
| Health Impact Fee |
$7.50 |
$0.75 |
|
| Cigarette Sales Tax |
$3.70 |
$0.370 |
|
| Fee on Non-Settlement Brands |
$3.50 |
$0.35 |
|
The Fee on Non-Settlement Brands is not factored into the cost of the tax stamp. One tax stamp (affixed to one pack of 20 cigarettes) costs $1.60. This is generally the amount cited as the tax per pack.
R.J. Reynolds, Philip Morris, Lorillard, and Liggett are the brands who settled a state law suit and therefore are not subject to the Fee on Non-Settlement Brands, also known as the Fee in Lieu of Settlement.
This fee is not included in the cost of the tax stamp, but is paid by the stamping distributor on a monthly basis when they file their Cigarette Tax returns.
Should the retailers who buy cigarettes from me charge sales tax?Back to top
No. The sales tax is included in the cost of Cigarette Tax stamps, purchased and applied by distributors.
Can I order cigarettes online or through the mail?Back to top
Yes. To do so you have to fill out a CT203, Consumer's Cigarette Tax form and pay any taxes and fees due as a result of your purchase(s).
Is an e-cigarette taxed as a cigarette or tobacco product?Back to top
E-cigarettes are considered tobacco products under the statutory definition of tobacco products. The definition changed on August 1, 2010 to include products derived from tobacco. Minnesota Statutes, Section 297F.01.
Where do I put e-cigarette information on my return?Back to top
This information will go on your CT301A (Purchases of Tobacco Products) form.
Do I need a distributor or subjobber license?Back to top
You will need a cigarette distributor license if you do any of the following:
Acquire untaxed cigarettes for sale to Minnesota subjobbers or retailers,
Ship or transport cigarettes to Minnesota retailers to be sold by those retailers, or
Purchase cigarettes directly from a manufacturer and apply cigarette stamps to at least 50 percent of the cigarettes you sell.
You will need a cigarette subjobber license if you do any of the following:
Acquire stamped cigarettes from a distributor to sell to retailers,
Are a licensed distributor who delivers, sells or distributes stamped cigarettes from a business not covered in your distributor's license, or
Are a vending machine operator; principal business is operating, or owning and leasing to operators, machines for the vending of merchandise or service.
What if the brand I purchased is not on the list?Back to top
Call us at 651-556-3035. (TTY users call 711 for Minnesota Relay).
What do I do if I have an overage or a shortage?Back to top
If you find you have an overage or a shortage for the month, you may review our list of causes of overages and shortages for resident or nonresident distributors. This can give you an idea of why you may have an overage or a shortage. Due to natural fluctuations in business we will offset your overages to a shortage that falls the month before or after the shortage during an audit. Any shortage not covered by an overage will result in additional tax when an audit of your records is completed.
How do I know if I have an overage or a shortage?Back to top
What are the relevant statutes?Back to top
Where do I send my return?Back to top
Minnesota Revenue, Mail Station 3331, St. Paul, MN 55146-3331
To whom do I make out the check?Back to top
