The bill proposes an amendment to Minnesota Statutes 2024, specifically section 297F.06, to introduce a new subdivision that exempts certain sales of cigars from the tobacco products excise tax. The new legal 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.

Additionally, the bill includes an effective date for this exemption, stating that it will take effect on July 1, 2025. This change aims to provide a tax incentive for the sale of cigars shipped out of state, potentially benefiting manufacturers and distributors engaged in interstate commerce.

Statutes affected:
Introduction: 297F.06