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Published May 17, 2013, 05:54 PM

Liquor tax increase unlikely for Minnesota

Local Minnesotans may be crossing the river to buy cigarettes but it looks as though liquor taxes will stay the same.

Local Minnesotans may be crossing the river to buy cigarettes but it looks as though liquor taxes will stay the same.

A proposed plan would have increased liquor taxes by 600 percent in Minnesota, which posed concern for bar owners in East Grand Forks. The per-pack tax on cigarettes will rise by one dollar and sixty cents and there won't be any changes to the alcohol tax. Leading Minnesota lawmakers have sorted out a tax package that is the linchpin of the next state budget. The top two percent of income earners will pay two percent more on a portion of their income. Some corporate tax preferences will go away. Combined, the taxes will generate $2 billion more for Minnesota's two-year budget but leaders say there is $400 million in potential property tax relief in their plan.

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