Report: Minnesota cigarette sales down, tax revenue up - KMSP-TV

Report: Minnesota cigarette sales down, tax revenue up

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ST. PAUL, Minn. (KMSP) -

Minnesota's cigarette tax increase has led to a big drop in sales since July 1 – the exact effect tobacco sellers feared and anti-smoking groups hoped for.

Minnesota Public Radio News reported Thursday that early Department of Revenue figures show a double-digit percentage drop in demand for the stamps attached to each pack of cigarettes over the same period last year.

The stamps on cigarette packs are proof that state taxes have been paid.

Wholesalers and retailers told MPR News the lower sales are a result of the $1.60 per pack tax hike, especially in border towns.

The Department of Revenue reports that tax collections are up, but still lagging behind projections included in the state budget.

The Associated Press contributed to this report

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