Study: Cigarette Tax Increase Leads To Increased Sales In Neighboring States [AUDIO]

UNDATED - It's been a little over a year since Minnesota increased the tobacco tax in Minnesota, and a new study says retailers are feeling the effects.

Minnesota Retailers Association President Bruce Nustad says among the findings: 1,100 jobs have been cut, while nearly a quarter of all cigarettes consumed in Minnesota are now bought in other states. And, he says it's impacting non-tobacco products as well.

He says members are trying to make up for the lost sales in other areas.

The 2013 legislation also included a new automatic annual inflation adjustment of the cigarette tax, which kicks in next year.

Minnesota increased the tobacco tax by $1.60 a pack on July 1st of last year, giving our state the sixth highest tax on cigarettes.

Meanwhile, a strong supporter of the tobacco tax increase, Clearway Minnesota, isn't giving the study a lot of credibility. Spokeswoman Ann Mason says it's a biased report.

Mason says they're working with the State Health Department to put together own study. That should be released some time early next year.