New laws take effect today
Published 12:00 am Monday, August 1, 2005
MINNEAPOLIS (AP) &045; Jim and Dave Sarna enjoyed a late-July surge in sales at their father-and-son tobacco store on the city’s north side. They’re fretting an anticipated drop-off beginning Monday when the state slaps hefty new charges on cigarettes and cigars.
Customers have been stocking up to avoid the new 75-cent-per-pack duty on cigarettes &045; on top of an existing 48-cent tax &045; and more dramatic cost spikes for cigar, pipe and chewing tobacco. One man, Dave Sarna said, bought 30 cartons &045; 6,000 cigarettes &045; that will last his father nine months and save him $275. Others were walking out with boxes of cigars, aware they’ll be paying up to several dollars more for each smoke after the new charges kick in.
&uot;August is going to be a slow month,&uot; Jim Sarna lamented. Still, he’s not overly worried about the long-term demand for cigarettes, which makes up 70 percent of his sales. &uot;I’ve had very few people who say they are going to quit.&uot;
While smokers will be dropping extra quarters in the state till, another new law taking hold Monday will land extra dollars in the pockets of roughly 128,000 low-wage workers. For the first time since 1997, Minnesota’s minimum wage is on the way up &045; from $5.15 an hour to $6.15.
Carrie Thomas, policy director at the JOBS NOW Coalition, said the bump is a big deal for people at the bottom of the pay scale. Her group pushed for a bigger boost to catch up with inflation.
&uot;Those folks spend every dollar they earn regardless of what their role is as a contributor to their family,&uot; Thomas said. &uot;A dollar an hour increase is a big increase for someone who is living on $10,000 to $15,000 a year.&uot;
State officials estimate that 49,000 people earn the minimum and another 79,000 make less than $6.15 an hour. Steve Hine, research director at the Department of Employment and Economic Development, predicted businesses also would increase the pay of people who were already near the new minimum to stay competitive.
There are exceptions to the $6.15 wage. Employers with annual gross sales under $625,000 would have to pay their workers $5.25. There’s also a $4.90 training wage for teenagers in their first three months on the job.
Some other laws making their debut include:
&045;Predatory sex offenders whose crimes are particularly heinous will face life in prison without parole. Other sex offenders could face open-ended sentences, allowing prison officials to refuse release for convicts who pose a serious continuing risk.
&045;People caught manufacturing methamphetamine will face stiffer penalties, as will people whose meth-related activities pose particular dangers to children and vulnerable adults.
&045;Drinking and driving will be treated with less tolerance. The state’s threshold for a driving-while-intoxicated offense goes from 0.10 percent blood alcohol content to 0.08 percent, unifying the nation’s DWI standard.
&045;Doctors who perform abortions must offer anesthesia for any fetus at least 20 weeks old.
&045;The cost of a driver’s license will go up $3 to $21.50 for a regular license.
Back at Sarna’s Tobacco Depot, the new pricing structure will take some getting used to for customers.
A cigar that went for $15.09 in July will cost $20.37 from August on as the state’s 35 percent charge on cigars and other tobacco products will rise to 70 percent.
Dave Sarna said Internet cigar stores could lure away his customers.
The cigarette and other tobacco charges &045; Gov. Tim Pawlenty labeled them a Health Impact Fee while others say it’s a tax &045; are expected to bring in $400 million over the next two years to help balance the state budget. Advocates also say the higher costs should drive down smoking rates, which will save money in health care costs in the long run.
As he puffed on a cigarette outside the Sears department store in St. Paul last week, house painter Nate Jackson said he feels unfairly targeted.
&uot;It’s going to hurt,&uot; Jackson said, reflecting on his three-pack-a-week habit. &uot;I might quit. I don’t think I’m addicted, but I enjoy them.&uot;
(Brian Bakst can be reached at bbakst(at)ap.org)