The bill proposes an amendment to Minnesota Statutes 2024, specifically section 297F.06, by adding a new subdivision that exempts certain sales of cigars from the tobacco products excise tax. The new language specifies that sales of cigars by a manufacturer or tobacco products distributor for shipment outside the state in interstate commerce will not be subject to the taxes imposed under section 297F.05, subdivisions 3 and 3a.

This exemption aims to support the cigar industry by allowing manufacturers and distributors to sell their products without incurring additional tax burdens when shipping out of state. The effective date for this amendment is set for July 1, 2025.

Statutes affected:
Introduction: 297F.06