ST. PAUL (AP) — Leading Minnesota lawmakers have sorted out a tax package that is the linchpin of the next state budget.

The top two percent of income earners will pay two percent more on a portion of their income. The per-pack tax on cigarettes will rise by $1.60. Some corporate tax preferences will go away. But there won't be any changes to the alcohol tax.

Gov. Mark Dayton, House Speaker Paul Thissen and Senate Majority Leader Tom Bakk say the agreement will pave the way for the Legislature to pass its budget before a mandatory Monday night adjournment to the session.

Combined, the taxes will generate $2 billion more for Minnesota's two-year budget. But the leaders say there is $400 million in potential property tax relief in their plan.

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