NEIGHBORHOOD STORE ASSOCIATION
Winter 2006
Vol. 8 No. 1
Smokers Take Minnesota’s ‘Health Impact Fee’ to Court
Three smokers in Minnesota have filed a class action lawsuit alleging that the state’s 75 cent per pack “health impact fee”--disguised as a cigarette excise tax increase--is illegal and they want a refund, reported the Associated Press.
Whether the state can legally charge the extra 75 cents hit a high note for smokers on December 20, 2005 when Ramsey County District Judge Michael Fetsch struck down the 75 cent per pack tax hike. Fetsch ruled the fee is in violation of the state’s 1998 tobacco settlement. In his ruling, he ordered the state to “pay refunds or give credits” to the tobacco companies for fees paid since the law took effect in August 2005.
The state is appealing the ruling. The Minnesota Supreme Court has agreed to hear the case in April. Until then, the state is still collecting “about $20 million a month, but is required to bank the money while the appeal is pending.”
NACS Online, January 25, 2006
Inside:
Tobacco Taxes headed for the Ballot again?
Supreme Court Upholds Tax Despite Indian Casino Claim
Governor Pataki Confirms Cigarette Excise Tax Plan
New California Initiative Proposes $2.60 Increase…