Minnesota House Backs Higher Income, Booze Taxes

ST. PAUL (AP) — Minnesota House lawmakers have voted to raise taxes on beer, wine and liquor for the first time in a generation.

The alcohol tax is part of a much larger tax bill that passed Wednesday on a 69-64 vote.

The tax bill would also assess higher tax rates on cigarettes, some corporations and certain incomes that are six figures and up. The overall $2.6 billion in new revenue would be used to balance the state budget and pay off past debts to schools and other entities.

The alcohol tax isn't in a companion Senate bill, so its fate beyond the House vote is uncertain.

The booze tax is assessed on the wholesale level. But consumers would likely pay more as the cost is passed through the production and retail chain.