Watch CBS News

New Minn. Cigarette Tax Unlikely To Exceed Wis.

ST. PAUL, Minn. (AP) -- Minnesota's cigarette tax is about to go up, but a top lawmaker says the new rate won't be more than Wisconsin's.

Minnesota Senate Majority Leader Tom Bakk says the final tax could match the $2.52 per pack rate charged in Wisconsin. That's $1.29 more than Minnesota assesses now.

The House had suggested a $1.60 boost.

The higher tobacco tax is part of a $2 billion plan to raise new money toward the state's next budget.

Bakk says the tax bill is likely to include a limited broadening of the sales tax base, but the concentration will be on warehousing and other business-to-business transactions. But Bakk says that the plan is to exempt local governments from all sales taxes, at a cost of more than $100 million per year.

Minnesota's current cigarette tax of $1.23 per pack is below South Dakota's ($1.53) and Iowa's ($1.36). North Dakota charges just 44 cents per pack in tax.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.