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Who is liable for Tobacco Tax?
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In general:
- For tobacco received by a distributor located in Minnesota: The distributor is liable for the tobacco excise tax.
- For tobacco sales from a distributor located outside Minnesota: The distributor is liable for the tobacco excise tax when selling to a retailer in Minnesota, but is not liable when selling to a distributor located in Minnesota.
For details about specific business situations, refer to this table.
| You are a: | You sold tobacco products to: | Are you liable for the tax? |
|---|---|---|
| Minnesota (resident) distributor | a Minnesota retailer | Yes, if you were the first distributor who received the tobacco products at a location in Minnesota. |
| Minnesota (resident) distributor | a Minnesota (resident) distributor | It depends. Yes, if you were the first distributor who received the tobacco products at a location in Minnesota. No, if you shipped or transported the tobacco products from outside Minnesota directly to a distributor in Minnesota. |
| Out-of-state (non-resident) distributor | a Minnesota retailer | Yes. You shipped or transported the tobacco products to a retailer in Minnesota. |
| Out-of-state (non-resident) distributor | a Minnesota (resident) distributor | No. The first distributor who received the tobacco products at a location in Minnesota is liable for the tax. |