Report: Cigarette Sales Down, Tax Haul Up In Minn.

ST. PAUL, Minn. (AP) — As tobacco sellers feared, Minnesota’s increased tax on cigarettes has dampened sales since taking effect on July 1.

Minnesota Public Radio News reported Thursday that early Department of Revenue figures show a double-digit percentage fall in demand for the stamps affixed to each pack of cigarettes over the same period last year. The stamps are proof that state taxes have been paid. Wholesalers and retailers pin the dip on the extra $1.60 per pack tax, especially in border towns.

The department reports that tax collections are up anyway, though they are slightly lagging projections used when lawmakers built the tax increase into their newly enacted state budget.

Anti-smoking groups say the higher cigarette tax is having its intended effect: Getting people to consider quitting.

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 This material may not be published, broadcast, rewritten or redistributed.)


Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From WCCO | CBS Minnesota

Good Question

Listen Live