FARGO (AP) - North Dakota retailers say they're reaping the benefits of a new cigarette tax in Minnesota. And retailers in Minnesota say the new tax is snuffing out their smokes sales.

Minnesota lawmakers added 75 cents on top of the state's previous 48-cent-per-pack cigarette tax on Aug. 1.

For Minnesota smokers, it created a 79-cent-per-pack difference from North Dakota that has sent them stocking up across the border.

Fargo Stamart manager Fred Fix said there's been a "dramatic increase" in cigarette sales at the store since the Minnesota law took effect.

He estimated the store is selling up to four times the amount of cigarettes now.

People from Minnesota are buying more and stocking up, he said. One customer bought a dozen cartons to take to relatives in Princeton, Minn.

"We're seeing a lot more carton business than we used to," Fix said.

The store has struggled to find room to store the additional cartons to keep up with demand, he said. He's also learning what additional brands to carry to serve his new customers.

"It's been an adjustment period," Fix said.

Fargo Cenex manager Joani Thomas also has seen a boost in cigarette sales. She estimates the store is selling 150 more cartons a week.

"People will come over and buy $100 and $200 in cigarettes," she said. "They just can't believe our cartons are this much cheaper than Minnesota's."

Gov. Tim Pawlenty proposed the 75-cent cigarette charge and insists it's a fee because proceeds will help offset the costs of subsidized health care for smokers. The law states the fee is also aimed at reducing tobacco use.

The increased duty on cigarettes and other tobacco charges is expected to raise more than $401 million in the next two years.

A spokesman for the Minnesota Department of Revenue said it was too early to tell if the expectations are on target.

Troy Sundby says it was a simple decision for customers to quit cold turkey coming into his Moorhead, Minn. business. Just 20 days after the new state law forced him to mark up his prices, the Tobacco City operations manager closed the store after nearly six years in business.

"The number of people visiting our store dropped significantly," Sundby said. "We just couldn't do it at that point."

North Dakota's 44-cent cigarette tax is also lower than the taxes in other surrounding states.

Montana residents pay a $1.70 tax per pack, while South Dakotans pay a 53-cent tax per pack.

Raising the state's tax wasn't discussed during the 2005 legislative session, said Kathleen Mangskau, director of North Dakota's Division of Tobacco Prevention and Control.

The focus was instead on creating a statewide law that restricts smoking in public places, she said.

Mangskau predicted the state's cigarette tax will be discussed during the next session.