ST. PAUL – The tobacco and
alcohol taxes in Minnesota might increase if the state Senate approves of a
bill passed by the Minnesota House of Representatives, Minnesota Public Radio
reports. The House okayed the tax bill by a slim margin this week.
The measure raises $2.6
billion for the state, which lawmakers say is desperately required to balance
the budget and funnel money to schools and other services. Part of those funds
will come from raising the cigarette tax $1.60 per pack to reach $2.83 per
pack, although Gov. Mark Dayton’s budget only calls for a 94 cent per pack
hike.
State Rep. Tina Liebling
is in favor of an increase in the tobacco tax. “This is a provision that will
literally save lives,” she said. “There are very few of us on the House floor
who haven't had a relative touched by the problems of cigarette smoking or
other tobacco consumption can cause.”
But state Rep. Deb Kiel
said the alcohol and cigarette tax hikes would drive away business to
neighboring North Dakota. “I might as well put a sign up in my district that
says ‘Don't bother coming here; just go over to North Dakota,’” she said.
“Because that's what we're doing. We're sending our business, we're sending our
people to places that do not tax this way.”
The House alcohol tax
would tack on 7 cents to a glass of beer or liquor shot, and 47 cents to a
bottle of wine. The Senate version does not have an alcohol tax increase. The
Senate will vote on a reconciled bill next week.