Wintry mix spreads across Minnesota

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A coalition of retailers and business organizations is calling for an end to automatic cigarette and tobacco tax increases in Minnesota. 


Business groups say high tobacco prices in Minnesota encourage smuggling and end up costing the state money and jobs. The groups sent Gov. Mark Dayton a letter protesting the pending increase to $3.54 per pack, a figure they characterized as "astounding."

Cigarette sellers say tax hike will drive buyers to other states

Lance Klatt, who directs the Minnesota Service Station Association, said high tobacco taxes are cutting into all kinds of sales, especially in border communities.


"When you look at not only the tax revenue on cigarettes and tobacco you're losing, you've lost the revenue on your gasoline sales, you've lost  the tax revenue on inside-store sales, and  then on top of that, when the store goes out of business, you're losing property taxes from the store," Klatt said.


The state tax on tobacco is set to rise Jan. 1, based on inflation.

Higher Minnesota cigarette prices drive more to try to quit

Business and Economic News

Health

Mark Zdechlik

Author

The increase, indexed to inflation, will put the tax per pack of cigarettes at $3.54.

Business groups protest automatic tobacco tax hike

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