MN SF1916

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

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

Directs state to use increased tobacco tax revenue to maintain school aid payment percentages at 70 percent or higher by increasing school funding under sections 127A.45 and 16A.152.

Reduces the state general levy base amount when current year aid payment percentage reaches 70 percent or higher by an amount equal to the new tobacco tax collections.

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