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Minnesota Edges Toward 6th Highest Cigarette Tax

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ST. PAUL, Minn. (AP) – Minnesota is weeks away from having the nation’s 6th highest tax on cigarettes when the new $2.83-a-pack charge kicks in.

The Minnesota Department of Revenue on Thursday put a finer point on tax changes the Legislature approved in May. Increases in tobacco taxes were key parts of a new state budget.

The cigarette tax hike is effective July 1. Minnesota smokers pay $1.23 per pack now, which is beneath the national average. New York is tops at $4.35.

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 one-time floor stock tax by early September. Proceeds from that floor tax have been earmarked to retire debt on the new Minnesota Vikings stadium.

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