Cigarette Tax Goes Into Effect July 1 in Minnesota

By KBJR News 1

June 6, 2013 Updated Jun 6, 2013 at 7:07 PM CDT

Duluth, MN (NNCNOW.com) --- Minnesota lawmakers approved a budget plan to help solve the state's $627 million dollar deficit that included a hefty tax on cigarettes.

So what does that mean for the consumer?

On Thursday, the Minnesota Department of Revenue released more information on the cigarette tax...and in short, smokers will be paying quite a bit more to light up.

Smokers will be charged an extra $2.83 per pack beginning July 1st.

Also on July First retailers and distributors will have to conduct an inventory and pay a one-time floor stock tax on every pack of cigarettes they have.

The Department of Revenue estimates that the price increase could result in a sales decrease, but still says it shouldn't affect the end plan of bringing more money into the state.

"That takes into account people who quit smoking or smoke less and will change their buying patterns. So we take that into account but we'll have to watch and see what happens with buying patterns," said Commissioner Myron Frans.

Chewing tobacco will also increase by $2.83 per container beginning in January of next year.

The department of revenue will be updating its website every Thursday to help make taxpayers aware of the upcoming changes.

For the latest on all of the law changes during the 2013 legislative session, check out this website Minnesota Department of Revenue Website

Posted to the web by Raeanna Marnati