1.1 A bill for an act
1.2 relating to taxation; repealing the tax on illegal cannabis and controlled substances;
1.3 making related technical changes; amending Minnesota Statutes 2024, section
1.4 609.902, subdivision 4; repealing Minnesota Statutes 2024, sections 13.4967,
1.5 subdivision 5; 297D.01; 297D.02; 297D.03; 297D.04; 297D.05; 297D.06; 297D.07;
1.6 297D.08; 297D.085; 297D.09, subdivisions 1, 1a, 2; 297D.10; 297D.11; 297D.12;
1.7 297D.13.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2024, section 609.902, subdivision 4, is amended to read:
1.10 Subd. 4.Criminal act."Criminal act" means conduct constituting, or a conspiracy or
1.11attempt to commit, a felony violation of chapter 152, or a felony violation of section 297D.09;
1.12299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222;
1.13609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343;
1.14609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52,
1.15subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is
1.16a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a),
1.17clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528,
1.18if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582,
1.19subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86;
1.20609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the
1.21offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act"
1.22also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation
1.23of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an
1.24insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service
1Section 1.
25-00059 as introduced11/21/24 REVISOR EAP/DG
SENATE
STATE OF MINNESOTA
S.F. No. 209NINETY-FOURTH SESSION
(SENATE AUTHORS: OUMOU VERBETEN)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/16/2025
Referred to Taxes 2.1plan corporation regulated under chapter 62C, a health maintenance organization regulated
2.2under chapter 62D, or a fraternal benefit society regulated under chapter 64B.
2.3 EFFECTIVE DATE.This section is effective August 1, 2025.
2.4 Sec. 2. REPEALER.
2.5 Minnesota Statutes 2024, sections 13.4967, subdivision 5; 297D.01; 297D.02; 297D.03;
2.6297D.04; 297D.05; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivisions 1, 1a,
2.7and 2; 297D.10; 297D.11; 297D.12; and 297D.13, are repealed.
2.8 EFFECTIVE DATE.This section is effective August 1, 2025.
2Sec. 2.
25-00059 as introduced11/21/24 REVISOR EAP/DG 13.4967 OTHER TAX DATA CODED ELSEWHERE.
Subd. 5.Marijuana and controlled substance tax information.Disclosure of information
obtained under chapter 297D is governed by section 297D.13, subdivisions 1 to 3.
297D.01 DEFINITIONS.
Subdivision 1.Illegal cannabis."Illegal cannabis" means any taxable cannabis product as
defined in section 295.81, subdivision 1, paragraph (r), whether real or counterfeit, that is held,
possessed, transported, transferred, sold, or offered to be sold in violation of chapter 342 or Minnesota
criminal laws.
Subd. 2.Controlled substance."Controlled substance" means any drug or substance, whether
real or counterfeit, as defined in section 152.01, subdivision 4, that is held, possessed, transported,
transferred, sold, or offered to be sold in violation of Minnesota laws. "Controlled substance" does
not include illegal cannabis.
Subd. 3.Tax obligor or obligor."Tax obligor" or "obligor" means a person who in violation
of Minnesota law manufactures, produces, ships, transports, or imports into Minnesota or in any
manner acquires or possesses more than 42-1/2 grams of illegal cannabis, or seven or more grams
of any controlled substance, or ten or more dosage units of any controlled substance which is not
sold by weight. A quantity of illegal cannabis or other controlled substance is measured by the
weight of the substance whether pure or impure or dilute, or by dosage units when the substance
is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute
if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
Subd. 4.Commissioner."Commissioner" means the commissioner of revenue.
297D.02 ADMINISTRATION.
The commissioner of revenue shall administer this chapter. The commissioner shall prescribe
the content, format, and manner of all forms and other documents required to be filed under this
chapter pursuant to section 270C.30. Payments required by this chapter must be made to the
commissioner on the form provided by the commissioner. Tax obligors are not required to give
their name, address, Social Security number, or other identifying information on the form. The
commissioner shall collect all taxes under this chapter.
297D.03 RULES.
The commissioner may adopt rules necessary to enforce this chapter. The commissioner shall
adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or
other official indicia for marijuana and controlled substances on which a tax is imposed.
297D.04 TAX PAYMENT REQUIRED FOR POSSESSION.
No tax obligor may possess any illegal cannabis or controlled substance upon which a tax is
imposed by section 297D.08 unless the tax has been paid on the illegal cannabis or a controlled
substance as evidenced by a stamp or other official indicia.
297D.05 NO IMMUNITY.
Nothing in this chapter may in any manner provide immunity for a tax obligor from criminal
prosecution pursuant to Minnesota law.
297D.06 PHARMACEUTICALS.
Nothing in this chapter requires persons registered under chapter 151 or otherwise lawfully in
possession of illegal cannabis or a controlled substance to pay the tax required under this chapter.
297D.07 MEASUREMENT .
For the purpose of calculating the tax under section 297D.08, a quantity of illegal cannabis or
a controlled substance is measured by the weight of the substance whether pure or impure or dilute,
or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A
quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled
substance and any excipients or fillers.
297D.08 TAX RATE.
A tax is imposed on illegal cannabis and controlled substances as defined in section 297D.01
at the following rates:
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APPENDIX
Repealed Minnesota Statutes: 25-00059 (1) on each gram of illegal cannabis, or each portion of a gram, $3.50; and
(2) on each gram of controlled substance, or portion of a gram, $200; or
(3) on each ten dosage units of a controlled substance that is not sold by weight, or portion
thereof, $400.
297D.085 CREDIT FOR PREVIOUSLY PAID TAXES.
If another state or local unit of government has previously assessed an excise tax on the illegal
cannabis or controlled substances, the taxpayer must pay the difference between the tax due under
section 297D.08 and the tax previously paid. If the tax previously paid to the other state or local
unit of government was equal to or greater than the tax due under section 297D.08, no tax is due.
The burden is on the taxpayer to show that an excise tax on the illegal cannabis or controlled
substances has been paid to another state or local unit of government.
297D.09 PENALTIES; CRIMINAL PROVISIONS.
Subdivision 1.Penalties.Any tax obligor violating this chapter is subject to a penalty of 100
percent of the tax in addition to the tax imposed by section 297D.08. The penalty will be collected
as part of the tax.
Subd. 1a.Criminal penalty; sale without affixed stamps.In addition to the tax penalty imposed,
a tax obligor distributing or possessing illegal cannabis or controlled substances without affixing
the appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be
sentenced to imprisonment for not more than seven years or to payment of a fine of not more than
$14,000, or both.
Subd. 2.Statute of limitations.Notwithstanding section 628.26, or any other provision of the
criminal laws of this state, an indictment may be found and filed, or a complaint filed, upon any
criminal offense specified in this section, in the proper court within six years after the commission
of this offense.
297D.10 STAMP PRICE.
Official stamps, labels, or other indicia to be affixed to all illegal cannabis or controlled
substances shall be purchased from the commissioner. The purchaser shall pay 100 percent of face
value for each stamp, label, or other indicia at the time of the purchase.
297D.11 PAYMENT DUE.
Subdivision 1.Stamps affixed.When a tax obligor purchases, acquires, transports, or imports
into this state illegal cannabis or controlled substances on which a tax is imposed by section 297D.08,
and if the indicia evidencing the payment of the tax have not already been affixed, the tax obligor
shall have them permanently affixed on the illegal cannabis or controlled substance immediately
after receiving the substance. Each stamp or other official indicia may be used only once.
Subd. 2.Payable on possession.Taxes imposed upon illegal cannabis or controlled substances
by this chapter are due and payable immediately upon acquisition or possession in this state by a
tax obligor.
297D.12 ALL ASSESSMENTS ARE JEOPARDY.
Subdivision 1.Assessment procedure.An assessment for a tax obligor not possessing valid
stamps or other official indicia showing that the tax has been paid shall be considered a jeopardy
assessment or collection, as provided in section 270C.36. The commissioner shall assess a tax and
applicable penalties based on personal knowledge or information available to the commissioner;
mail the taxpayer at the taxpayer's last known address or serve in person, a written notice of the
amount of tax and penalty; demand its immediate payment; and, if payment is not immediately
made, collect the tax and penalty by any method prescribed in chapter 270C, except that the
commissioner need not await the expiration of the times specified in chapter 270C.
Subd. 2.Injunction prohibited.No person may bring suit to enjoin the assessment or collection
of any taxes, interest, or penalties imposed by this chapter.
Subd. 3.Standard of proof.The tax and penalties assessed by the commissioner are presumed
to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their
incorrectness or invalidity. Any statement filed by the commissioner with the court administrator,
or any other certificate by the commissioner of the amount of tax and penalties determined or
assessed is admissible in evidence and is prima facie evidence of the facts it contains.
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APPENDIX
Repealed Minnesota Statutes: 25-00059 297D.13 CONFIDENTIAL NATURE OF INFORMATION.
Subdivision 1.Disclosure prohibited.Notwithstanding any law to the contrary, neither the
commissioner nor a public employee may reveal facts contained in a report or return required by
this chapter or any information obtained from a tax obligor; nor can any information contained in
such a report or return or obtained from a tax obligor be used against the tax obligor in any criminal
proceeding, unless independently obtained, except in connection with a proceeding involving taxes
due under this chapter from the tax obligor making the return.
Subd. 2.Penalty for disclosure.Any person violating this section is guilty of a gross
misdemeanor.
Subd. 3.Statistics.This section does not prohibit the commissioner from publishing statistics
that do not disclose the identity of tax obligors or the contents of particular returns or reports.
Subd. 4.Possession of stamps.A stamp denoting payment of the tax imposed under this chapter
must not be used against the taxpayer in a criminal proceeding, except that the stamp may be used
against the taxpayer in connection with the administration or civil or criminal enforcement of the
tax imposed under this chapter or any similar tax imposed by another state or local unit of
government.
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APPENDIX
Repealed Minnesota Statutes: 25-00059