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Tobacco Tax Requirements
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Distributors pay the Tobacco Tax to the Minnesota Department of Revenue on tobacco products.
The tax applies to all tobacco products in Minnesota (except cigarettes).
The tax is charged when a distributor:
- Brings tobacco products into Minnesota or has them transported into Minnesota from outside the state
- Makes or manufactures tobacco products in Minnesota for sale in the state
- Ships or transports tobacco products to retailers in Minnesota for sale by those retailers
Distributors and subjobbers must be licensed by the Minnesota Department of Revenue before they can sell or distribute cigarettes or tobacco products in Minnesota. Go to Cigarette and Tobacco Licensing Information.
Moist Snuff Definition Amended
Beginning July 1, 2024, the definition of “moist snuff” is expanded to include similar tobacco-free products containing nicotine. All products meeting the definition of moist snuff are tobacco products for Minnesota Tobacco Tax purposes.
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| Tax Type | Product Type | Tax Rate |
|---|
| Moist Snuff | Any finely cut, ground, or powdered smokeless tobacco, or similar tobacco-free product containing nicotine, that is intended to be placed or dipped in the mouth. Examples include traditional moist snuff, pouches, and snus. A container of moist snuff is a consumer size can, package, or other container that is marketed or packaged for sale to a retail purchaser. | Container that weighs 1.2 ounces or less is 95% of the wholesale sales price or $3.04, whichever is greater. Container that weighs more than 1.2 ounces is 95% of the wholesale sales price, or $3.04 multiplied by the ounces and divided by 1.2, whichever is greater. |
| Premium Cigars | A hand-constructed cigar that has a wrapper made entirely from whole tobacco leaf and a filler and binder made entirely of tobacco (except for adhesives or other materials used to maintain size, texture, or flavor) with a wholesale price of $2.00 or more. | 95% of the wholesale sales price or $0.50 per cigar, whichever is less. Go to Wholesale Price of a Premium Cigar. |
| Tobacco Tax | Applies to cigars, smoking tobacco, chewing tobacco, e-cigarettes, and vapor products. | 95% of the wholesale sales price of the tobacco product. |
| Tobacco Use Tax | Applies to tobacco products individuals bring into Minnesota on which they did not pay Minnesota taxes and fees. | Go to Cigarette and Tobacco Use Tax. |
You must file a return and pay the tax by the 18th of the month to report the previous months' sales in Minnesota. If you do not, we will assess penalty and interest. You must file a return even if you had no sales to report.
If you brought more than $50 of tobacco products into the state in a month, but did not pay the Minnesota Tobacco Tax when you purchased the products, you must pay the tax directly to us. Go to Cigarette and Tobacco Use Tax.
