Stay Curious. Stay Connected.
MailNewsletters♡Donate Now
Sign up
*Password must be at least 8 characters and contain one uppercase letter, one lowercase letter, one number and one symbol.
Already have an account?
By submitting, you consent that you are at least 18 years of age and to receive information about MPR's or APMG entities' programs and offerings. The personally identifying information you provide will not be sold, shared, or used for purposes other than to communicate with you about MPR, APMG entities, and its sponsors. You may opt-out at any time clicking the unsubscribe link at the bottom of any email communication. View our Privacy Policy.
Sign in to your profile
Forgot Password?
New to MPR News?
Welcome back
to news
for you
Reset Password

Enter the username on file and we'll send you a code to reset your password.

Still require assistance or not sure what your User Name is?
Welcome back
to news
for you
Email Verification

A verification code has been emailed to

Still awaiting the code?
Capitol View®
Catharine Richert

GOP lawmaker seeks end to annual cigarette tax hikes

Go Deeper.

Create an account or log in to save stories.

Like this?

Thanks for liking this story! We have added it to a list of your favorite stories.

The House tax committee debated a bill Wednesday that would prevent cigarette taxes from increasing in the future.

The legislation is sponsored by Rep. Greg Davids, R-Preston, who chairs the tax committee. His bill would put the breaks on automatic annual increases in the cigarette excise tax.

Legislators approved the automatic increases in 2013, and the first hike went into effect earlier this year.

Davids said the tax encourages cigarette smuggling across state lines.

“It seems with our tremendously high tobacco taxes in Minnesota, we are creating nefarious activities that we now seem to need to control," Davids said.

The Department of Revenue says it needs $1 million annually for 11 new inspectors to stop smugglers. The department estimates smuggled cigarettes will cost the state $2.6 million over two years in lost tax revenue.

The group ClearWay Minnesota, which works to help people stop smoking, opposes Davids' bill,  saying higher prices go a long way in helping people stop or avoid smoking, especially younger people who are especially concerned about money.

But others, including those who own gas stations and who represent the tobacco industry, say the tax and any future increases will mean lost business and lost jobs as Minnesotans go to places like North Dakota or Wisconsin to buy cigarettes.

Davids’ bill may be considered as part of a larger tax package.