Fee in Lieu of Settlement
Cigarette brands purchased from manufacturers who have not entered into a tobacco agreement with the state of Minnesota are also subject to an additional fee (2.5 cents per cigarette or 50 cents per pack of 20 cigarettes) to help the state recover some of the public health care costs related to smoking. (See Minnesota Statute 297F.24.)
Which manufacturers entered into the settlement agreement?
Philip Morris, R. J. Reynolds, Lorillard and Liggett entered into a settlement agreement. These manufacturers do not pay the fee because they make annual payments to the state of Minnesota.