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Published February 26, 2013, 02:32 PM

Massive Tax Increase on Alcohol Being Considered in MN

Lawmakers in Minnesota are looking at a tax increase on alcohol in the State. The proposed increase could raise taxes nearly 300 percent.

Lawmakers in Minnesota are looking at a tax increase on alcohol in the State. The proposed increase could raise taxes nearly 300 percent.

Many bars and restaurants are worried that if the proposed bill passes, that much of a tax increase could close them down for good. A Minnesota state representative proposed the increase with the extra money going towards chemical dependency treatment and support. Many bar and liquor store owners however worry about customers just crossing over to North Dakota to get their alcohol.

An example of the proposed increase -- the current cost of tax on wine per gallon is 95 cents, with the increase it would be more than eight dollars per gallon. Beer is currently $2.40 per barrel, that would go up to nearly $14. Spirits would go from $5 per gallon to nearly $18. Local bar owners and managers say they pay enough in taxes already and are scared this will deter business and even run them into the ground. No action has been taken on the proposed bill yet in the legislature.

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