MN HF2761

Increases cigarette tax rates effective July 1, 2012: from 24 to 88.5 mills per cigarette weighing not more than three pounds per thousand, and from 48 to 177 mills per cigarette weighing more than three pounds per thousand.

Increases tobacco product tax rate from 35 to 47.5 percent of wholesale sales price, effective July 1, 2012.

Directs cigarette and tobacco tax revenue to increase school aid payments when current year aid payment percentage falls below 70 percent.

Reduces state general levy base amount by an amount equal to increased cigarette and tobacco tax collections when current year aid payment percentage reaches or exceeds 70 percent.

Imposes floor stocks tax on cigarettes and tobacco products held by distributors, retailers, and manufacturers on July 1, 2012, with returns due by July 8, 2012, and payment due by August 1, 2012.