Cigarette and Tobacco Taxes
Cigarette and tobacco product distributors and wholesalers pay these taxes, as well as an additional sales tax and nonsettlement fee on each package of cigarettes. Individuals who bring, transport, or ship cigarettes or tobacco products from another state or country may also be liable for use tax. We issue licenses to all distributors and subjobbers before they can sell or distribute cigarettes in Minnesota. (See Minnesota Statutes, Chapter 297F, and M.S. 325F.781.)
Starting March 28, Vapor Products Covered by Federal PACT Act
The federal Prevent All Cigarette Trafficking (PACT) Act was amended to include vapor products. Effective March 28, 2021, the act applies to all electronic nicotine delivery system products. For more information, go to PACT Act.
Starting April 1, Certain Brands No Longer Subject to Non-Settlement Fee
Cigarette manufacturer ITG Brands LLC (ITG) recently agreed to join the Minnesota Tobacco Settlement Agreement for Winston, Kool, Salem, and Maverick cigarette brands.
As a result, Minnesota cigarette distributors will no longer be required to pay the 50 cent per pack fee in lieu of settlement on those cigarette brands. This is effective beginning with fees reported on your April 2021 Cigarette Tax Monthly Return, which is due May 18, 2021. All other brands currently manufactured by ITG remain subject to the fee in lieu of settlement.