Minnesota’s tobacco tax went up by 10 cents and the sales taxes on cigarettes went up by two cents on Jan. 1, 2016. In 2013, the legislature increased the cigarette tax by $1.60, and set in place an automatic inflator that increases the tobacco tax every year in line with inflation. At $3 (plus $0.54 in sales tax), Minnesota now has the seventh-highest cigarette tax. Each pack also has a $1.01 federal tax per pack.
The Minnesota Legislature is in full swing and several tobacco -related bills have been introduced. Bills under consideration: S.F. 1836: Sen. Hayden (D-Minneapolis) authored this bill that would allocate funding for the Minnesota Department of Health to partner with community organizations to evaluate and develop strategies to address the high use of menthol cigarettes among… Continue reading Minnesota Legislative Update
By BETSY BROCK Moist smokeless tobacco brands such as Longhorn and Kayak have a new packaging scheme to avoid Minnesota’s minimum moist smokeless tobacco (MST) tax. As of Jan. 1, 2014, a minimum tax is applied to MST products. These products are taxed at 95 percent of wholesale price with a minimum tax of $2.90… Continue reading New Smokeless Tobacco Products Use Bulk Packaging to Avoid Taxes
By BETSY BROCK Two recently published studies provide findings about the impact of the substantial 2013 Minnesota tobacco tax increase. The first study measured the tobacco industry response to the tax increase. Results are published in Tobacco Control (Brock B, Choi K, Boyle RG, Moilanen M, & Schillo BA. January 6, 2015) in a paper… Continue reading Two New Studies Highlight Impact of Minnesota Tobacco Tax increase