Fillable Form Ct303 - Tobacco Use Tax Return (Page 2 of 3) in pdf

Form CT303 Instructions

When you buy tobacco products in Minne-

• complete Form UT1, Individual Use Tax

The definition excludes any tobacco product

Return. Forms are available on our web-

sota, the price you pay includes the follow-

that has been approved by the U.S. Food

ing Minnesota taxes and fees:

site.

and Drug Administration and is marketed

and sold solely as a tobacco cessation prod-

• if the purchase was made on or after July

Use of Information

uct, as a tobacco dependence product or for

1, 2013, tobacco products tax equal to 95

The information on this return will be used

other medical purposes.

percent of the cost;

to determine the correct Minnesota tax and

fee liability for your out-of-state tobacco

• if the purchase was made on or after Aug.

Definition of Premium Cigars

purchase(s). Your Social Security number

1, 2005, but before July 1, 2013, tobacco

Premium cigars that should be included on

is private. You’re not legally required to

products tax equal to 35 percent of the

this form are defined as

furnish the number, but if you don’t we

cost and an additional health impact fee

• hand-constructed and hand-rolled

may not be able to properly identify you or

equal to the tobacco products tax, (for a

process your payment and return.

• has a wrapper made entirely from whole

total of 70 percent);

tobacco leaf

• if the purchase was made before Aug. 1,

Exemption

• has a filler and binder made entirely of

2005, tobacco products tax equal to 35

Purchases Made July 1, 2008, or Later

tobacco, except for adhesives or other

percent of the cost; and

If you purchased products on or after July

materials used to maintain the size, tex-

• sales tax.

1, 2008, you can buy $50 worth of products

ture, or flavor, and

without paying tobacco tax if you

If you buy tobacco products outside the

• has a wholesale price of $2.00 or more

state and aren’t charged these Minnesota

• use or store the tobacco products for your

taxes and fees, you must pay them directly

personal use, and

to Minnesota.

Continued

• carried the tobacco products into Min-

Complete Form CT303 to report and pay

nesota

the tobacco tax and health impact fee. For

Tobacco products purchased by mail order

Penalty and Interest

information on how to report and pay the

aren’t exempt for this time period.

Minnesota sales tax, see “Sales and Use Tax”

Penalty

Purchases Made Prior to July 1, 2008

on this page.

If you purchased the products prior to July

Penalties are collected as part of the

Due Date

1, 2008, and the products were for personal

cigarette taxes and fees.

File Form CT303 and pay the tax due by the

use, you could have purchased $100 worth

Late Payment. A penalty is due if you

18th day of the month following the month

of products without paying tobacco tax.

don’t pay your total taxes and fees by the

in which you purchased the tobacco.

In addition, you didn’t need to personally

due date. If your payment is 1 to 30 days

carry the tobacco products into the state. In

If you don’t file voluntarily, you may be

late, the penalty is 5 percent of the un-

this case, tobacco purchased by mail order

billed for the tax you owe as information

paid amount; 31 to 60 days late, 10 per-

is exempt for this time period.

about your purchases becomes available to

cent; more than 60 days late, 15 percent.

us. Your bill will include penalty and inter-

Note: These exemptions don’t apply to

Late Filing. If you also don’t file your re-

est charges, if applicable.

businesses or individuals who purchase the

turn on time, you must pay an additional

products for resell.

penalty for filing late. The late-filing

Sales and Use Tax

penalty is 5 percent of the unpaid taxes

Using the Exemption

If you didn’t pay sales tax on your tobacco

and fees.

List the amount of the exemption you’re

purchases, you may owe use tax.

claiming on line 1 in Section A. Subtract

Interest

In general, you owe use tax whenever Min-

this amount from the following lines, in or-

nesota sales tax isn’t charged on taxable

You must pay interest on the unpaid

der, until you’ve used the entire exemption:

items you buy, whether you buy them in

taxes and fees plus any penalties from the

Lines 1, 4, 10, 8. If an exemption remains

Minnesota or outside the state.

due date until the date the total is paid.

after applying it to these lines and there is

an amount listed on line 6, you may subtract

If the items you’re buying are for your

To figure how much interest you owe,

the remaining exemption from the cigar

use the following formula with the ap-

personal use (as opposed to buying items to

wholesale price as long as the cigar’s cost

use in a business), you can buy up to $770

propriate interest rate:

isn’t greater than the remaining exemption.

worth of taxable goods during the calendar

Interest =

(tax/fee + penalty) × # of days late ×

year without paying use tax. If, however,

Definition of Tobacco Products

interest rate ÷ 365

your purchases total more than $770, you

A tobacco product is any product that con-

The interest rates are:

must pay use tax on the entire amount. If

tains tobacco or any product that is made

you owe use tax, you may:

2013 . . . .3%

2007 . . . . . 8%

or derived from tobacco that is intended

2012 . . . 3%

2006 . . . . . 6%

• file and pay electronically from our web-

for human consumption, whether chewed,

2011 . . . 3%

2005 . . . . . 4%

site at (log in

smoked, absorbed, dissolved, inhaled,

2010 . . . 3%

2004 . . . . . 4%

to e-Services, enter your Social Security

snorted, sniffed or ingested by any other

2009 . . . 5%

2003 . . . . . 5%

number and follow the prompts to file

means.

2008 . . . 8%

2002 . . . . . 7%

and pay individual use tax); or

Form Ct303 - Tobacco Use Tax Return Page 2

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