Minnesota House Plans Alcohol, Cigarette Tax Hikes

Legislators seek a $1.60 per pack cigarette tax increase and alcohol tax hikes that would add 7 cents per beer, 47 cents per bottle of wine and $1.58 on a bottle of liquor.

April 18, 2013

ST. PAUL – Minnesota House Democrat leaders announced earlier this week a plan to raise taxes on alcohol and cigarettes, as well as a tax hike on the state’s top earners, WDAZ.com reports. 

The extra revenue would fund job creation, property tax relief and education initiatives, legislative leaders said.

“Those critical investments are not free,” state House Speaker Paul Thissen said. 

Thissen said the proposed alcohol tax increase would generate roughly $350 million over two years and would equate to about 7 cents per beer, 47 cents per bottle of wine and $1.58 on a bottle of liquor.

The cigarette tax hike would add $1.60 per pack, raising the tax to $2.83 per pack, and generate more than $400 million annually for the state. 

Republican Greg Davids said the excise taxes are problematic because they disproportionately affect low-income taxpayers.

Thissen said he expects the tax bill to go before the full House next week. Support for the increases are not strong outside the House.

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