ST PAUL – On July 1, Minnesota’s cigarette tax jumped $1.60 per pack — and triggered a decline in cigarette sales, Minnesota Public Radio reports. The Minnesota Department of Revenue said that stamp sales for cigarettes declined more than 35% July 2013 compared to July 2012, while stamp sales in August dropped 12% compared to a year earlier.

But those declining stamp sales haven’t impacted tobacco tax revenue, which, because of the higher tax, is up. The higher cigarette taxes in Minnesota have had a positive impact on tobacco sales in other states. In neighboring North Dakota, cigarette sales rose more than 9% in August 2013 compared to August 2012.

“It's very bad,” said Abdul Habit, a clerk at New Smokes. “It went down, like people [are] cutting back. People who used to buy a carton, now they buy five packs. People who used to buy a pack, now they just ask for single cigarette.”

Cigarette tax revenue jumped more than 56% for July and August over those months in 2012. However, initial reports indicate that tobacco tax revenue is $7 million under what was estimated for July and August. Before the tax went into effect, Minnesota residents purchased cigarettes in bulk to avoid paying the higher tax.