Agenda - Council Work Session - 04/11/2023

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HF100 NINTH ENGROSSMENT REVISOR BD 1-10100-9 149.1 (r) "Taxable cannabis product retailer" means a retailer that sells any taxable cannabis 149.2 product, and includes a cannabis retailer, cannabis microbusiness, cannabis mezzobusiness, 149.3 and lower-Dotencv hemD edible retailer. Taxable cannabis broduct retailer includes but is 149.4 not limited to a: 149.5 (1) retailer maintaining a place of business in this state; 149.6 (2) marketplace provider maintaining a place of business in this state, as defined in 149.7 section 297A.66, subdivision 1, paragraph (a); 149.8 (3) retailer not maintaining a place of business in this state; and 149.9 (4) marketplace provider not maintaining a place of business in this state, as defined in 149.10 section 297A.66, subdivision 1, paragraph (b). 149.11 Subd. 2. Gross receipts tax imposed. (a) A tax equal to a rate established by subdivisions 149.12 2 and 3 of gross receipts from retail sales in Minnesota of taxable cannabis products is 149.13 imposed on any taxable cannabis product retailer that sells these products to customers: 149.14 (1) beginning on July 1, 2023, to June 30, 2025, the rate is equal to eight percent; 149.15 (2) beginning on July 1, 2025, to June 30, 2027, the rate is equal to 5.25 percent; and 149.16 (3) beginning with fiscal year 2028, the rate is equal to the amount established under 149.17 subdivision 3. 149.18 (b) A taxable cannabis product retailer may but is not required to collect the tax imposed 149.19 by this section from the purchaser as long as the tax is separately stated on the receipt, 149.20 invoice, bill of sale, or similar document given to the purchaser. 149.21 (c) If a product subject to the tax imposed under this section is bundled in a single 149.22 transaction with a product or service that is not subject to the tax imposed under this section, 149.23 the entire sales price of the transaction is subject to the tax imposed under this section. 149.24 (d) The tax imposed under this section is in addition to any other tax imposed on the 149.25 sale or use of taxable cannabis products. 149.26 Subd. 3. Tax rate adjustment. (a) In April of each odd -numbered year, the commissioner 149.27 of revenue must make reductions to the tax imposed under this section if, on the basis of a 149.28 February forecast of general fund revenues and expenditures reflecting the most recently 149.29 completed fiscal year, the commissioner of management and budget determines that the 149.30 conditions in paragraph (b) are met. Article 2 Sec. 8. 149