ALBERT LEA, Minn. — Drive farther or pay more for cigarettes. That's the choice confronting smokers in border towns now that a higher cigarette tax has taken effect in Minnesota.
Northern Iowa convenience shops are anecdotally reporting a slight uptick in sales since Minnesota boosted its per-pack tax by $1.60 on July 1, the Albert Lea Tribune reported this week (http://bit.ly/16eo6Z5 ).
When adopting the higher tax, Minnesota lawmakers said the aim was two-fold. They wanted to discourage smoking and hoped to raise more revenue. Including other changes to tobacco taxes, analysts projected the state would generate about $200 million more per year. Officials are conscious of sales that can bleed across borders due to tax disparities.
Iowa's tax on cigarettes is $1.36 per pack — less than half the $2.83 now charged in Minnesota. Among the state's other neighbors: Wisconsin charges $2.52, South Dakota's tax is $1.53 and North Dakota assesses only 44 cents.
At Fallgatter's Market in Northwood, in northern Iowa, a lead clerk said she's selling 20 to 25 more cartons per week.
"I've been having people come down and buy a carton or two," said Johnna Emond, lead daytime cashier at the store.
Jackie Villela, cashier at Don's Motor Mart in Lake Mills, Iowa, said traffic has picked up a bit, partly from Minnesota residents who work in Iowa but are making a concerted effort to buy their cigarettes before heading home.
"We expect quite a bit more business in the next month or so," Villela said.