MN HF1733

Increases cigarette tax rates from 24 to 99 mills per cigarette (weighing 3 pounds or less per thousand) and from 48 to 123 mills per cigarette (weighing more than 3 pounds per thousand), effective July 1, 2011.

Increases tobacco products tax rate from 35 to 47.5 percent of wholesale sales price for both distributor and consumer use taxes, effective July 1, 2011.

Modifies cigarette definition to include products wrapped in tobacco leaf that appear and are marketed as cigarettes, and clarifies tobacco products definition by removing "little cigars" from the list of included products.

Imposes a one-time floor stocks tax of 75 mills per cigarette on all stamped cigarettes and unaffixed stamps held by distributors, retailers, and other tobacco businesses on July 1, 2011, with returns due by July 11, 2011 and payment due by August 8, 2011.

Requires Commissioner of Revenue to report to the 2012 legislature by January 15, 2012 on tobacco tax collection system improvements and a comprehensive collection system implementation plan for January 1, 2014, with $100,000 appropriated for report preparation.