1-time Minn. tobacco 'floor tax' yields $30.4M
ST. PAUL (AP) — A one-time tax on cigarette supplies has generated more than $30.4 million, most of which will be used as a backup funding stream for the new Minnesota Vikings stadium.
The Minnesota Department of Revenue released new details Tuesday. The tax was assessed on cigarettes already in stores or warehouses prior to July 1. It was imposed as a way to discourage stockpiling before the cigarette tax permanently rose by $1.60 per pack.
Gov. Mark Dayton's administration has earmarked $26.5 million for the stadium financing reserve fund. The initial hope that electronic pull-tabs would carry the weight hasn't panned out.
The amount the one-time tobacco tax brought in is less than the $32.4 million projected. That means fewer dollars will flow to the general treasury. All ongoing tax collections go there.