Cigarette Tax Hike Detailed 07 Jun 13

Minnesota is weeks away from having the nation’s 6th highest tax on cigarettes when the new $2.83 a-pack charge kicks in. Increases in tobacco taxes were key parts of the new state budget approved by the Legislature. The cigarette tax hike is effective July 1st. Minnesota smokers pay a $1.23 per-pack in taxes now, which is beneath the national average. New York is tops at $4.35 a pack. 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 1-time floor stock tax by early September. Proceeds from that floor tax have been earmarked for the new Minnesota Vikings stadium.