Remote Sellers of Tobacco Products May Have to Collect and Pay Tax in Minnesota

Oct 14th, 2020

The Minnesota Department of Revenue recently announced that out-of-state retailers making delivery sales of tobacco products to Minnesota customers are subject to economic nexus thresholds. This means that a tobacco products retailer must collect Minnesota cigarette and tobacco excise taxes if it makes either of the following during a 12-month period: (1) 200 or more delivery sales into the state; or (2) delivery sales into the state totaling more than $100,000. Retailers that meet either of these thresholds must begin collecting and remitting tax on the first day of a calendar month occurring no later than 60 days after meeting the threshold.

"Tobacco products" means cigarettes, smokeless tobacco, and premium cigars.