Minn. Edges Toward 6th Highest Cigarette Tax

Posted at: 06/06/2013 3:27 PM

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ST. PAUL, Minn. (AP) - Minnesota is weeks away from having the nation's 6th highest tax on cigarettes when the new $2.83-a-pack charge kicks in.

The Minnesota Department of Revenue on Thursday put a finer point on tax changes the Legislature approved in May. Increases in tobacco taxes were key parts of a new state budget.

The cigarette tax hike is effective July 1. Minnesota smokers pay $1.23 per pack now, which is beneath the national average. New York is tops at $4.35.

As part of the tax conversion, retailers must take inventory on packs already in stores. By mid-July they must report their counts to the state and pay a one-time floor stock tax by early September. Proceeds from that floor tax have been earmarked to retire debt on the new Minnesota Vikings stadium.

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 This material may not be published, broadcast, rewritten or redistributed.)
 

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