Senate committee sends bill to repeal illicit drug tax to Judiciary

Senate File 209, which would repeal Minnesota’s illicit cannabis and controlled-substance tax and remove the criminal penalty for failing to pay it, was recommended for passage and referral to the Senate Committee on Judiciary and Public Safety by the Senate Taxes Committee on Feb. 19.

At a committee hearing, sponsor Senator Umu Ribeaton explained the bill’s two main elements: removing the criminal penalty in chapter 609 for failing to pay the illicit-substance tax and repealing chapter 297D, which establishes the tax. "Senate file 209 repeals the illegal cannabis and controlled substance tax or chapter 297D and then it also removes the criminal penalties for the failure to pay this tax referenced in chapter 609," the sponsor said during the committee presentation.

Rayanna K. Lee, legislative and coalitions director for Americans for Prosperity – Minnesota, testified in support. Lee said the stamp-and-tax approach brings in virtually no revenue and has become more of a curiosity than a revenue tool. "The stamp is actually often more the subject of jokes and a collector's item than it actually is a serious tool for generating meaningful revenue," Lee told the committee, urging lawmakers to focus on other substance-abuse policy solutions.

Committee members were provided written materials including the bill language and a revenue estimate that characterized the fiscal effect as negligible and slightly in favor of taxpayers. With no recorded roll-call, the committee chair called for the voice vote; the motion prevailed and the bill was recommended to pass and be referred to Judiciary and Public Safety.

The bill also includes a narrow data-practices cross-reference change related to chapter 13 noted in committee materials.

Senate File 209 will proceed to the Judiciary Committee as recommended by Taxes Committee members for further consideration.