Wednesday, December 21, 2005
MN Cigarette "Fee" Tax Struck Down
The 75-cents-a-pack cigarette tax approved by the Legislature last summer has been struck down. A Ramsey County judge says the tax flies in the face of a settlement reached with tobacco companies in 1998. That agreement exacted billions of dollars from the tobacco industry to cover costs incurred upon government health programs because of smoking. The settlement also banned the state from making future claims on tobacco companies. Legislators approved the cigarette tax over the summer to help solve the state's budget crisis, estimating it would generate $400 million over the next two years. Lawmakers are now speculating on what the loss of that revenue cushion could do to the state's current budget surplus.
The anti-smoking Nazis recently took this hit.
Is Minnesota turning into the new Marlboro Country?
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