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 language specifies that sales of cigars by manufacturers or tobacco products distributors 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 amendment aims to encourage the sale of cigars outside of Minnesota by removing the tax burden on these transactions. The effective date for this exemption is set for July 1, 2025.

Statutes affected:
Introduction: 297F.06