Senate File 209, which would repeal Minnesota’s illicit cannabis and controlled substance tax and remove the criminal penalty for failing to pay that tax, was recommended for passage and referral to the Judiciary and Public Safety Committee by the Senate Taxes Committee on Feb. 19.
The bill’s author, identified in the hearing as Senator Verbaten, told the committee the measure removes the tax codified in chapter 297D and the related penalty reference in chapter 609; it also removes a small cross-reference in chapter 13 governing data practices. “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 senator explained during the hearing.
Rayanna Lee, legislative and coalitions director for Americans for Prosperity–Minnesota, testified in support. Lee told the committee the stamp “brings in virtually no revenue and it’s quite frankly silly,” and said the measure would free resources for substance-abuse programs and other priorities.
Committee Chair Rest called for the motion; Senator Dibble moved the committee recommendation. The committee voice-voted the motion and the chair announced the motion prevailed and the bill will be recommended to pass and referred to the Judiciary and Public Safety Committee.
The committee packet included a repeal list, a Senate Counsel summary and a revenue estimate that the chair said shows a negligible fiscal effect, described in the hearing as “in favor of taxpayers.” No recorded roll-call tally was provided in the committee transcript; the motion passed on a voice vote.
The bill will next be considered by the Judiciary and Public Safety Committee for any legal or enforcement implications, per the committee referral.