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Tobacco companies challenge Minn. tax

ST. PAUL, Minn., Aug. 29 (UPI) -- Three cigarette manufacturers have gone to court in an attempt to roll back Minnesota's 75-cent-a-pack hike in taxes.

The Duluth News Tribune reports that the increase, which took effect Aug. 1, have driven many smokers to try quitting. Blue Cross and Blue Shield of Minnesota reported that the number of new enrollees in its stop-smoking program doubled in the first two weeks of August, and hot lines to provide information to would-be non-smokers report a huge increase in calls.

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The tobacco companies argue that the tax increase violates a 7-year-old settlement with Minnesota.

The Legislature and Gov. Tim Pawlenty agreed to increase cigarette taxes to resolve a budget impasse. The tax hike is expected to bring in $200 million in new revenue and makes Minnesota's tax the 14th highest in the country.

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