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| | | | Cigarette and Tobacco News:Border Zone Cigarette Taxation: Arkansas's Novel Solution to the Border Shopping ProblemFiscal Fact No. 168 Read complete article: Tax Foundation, 2009-04-09 Author: Mark Robyn
Summary: On February 12, the Arkansas General Assembly passed legislation to increase the state's excise rates on all tobacco products. As required by the bill, on March 1 the cigarette tax went from 59 cents to $1.15 per twenty-pack.1 But the same tax rate will not be enforced statewide. In a novel provision, the legislation, Act 180 of 2009, included a lower, variable rate for certain towns and stores located near the Arkansas border. . . .
Arkansas legislators are shrewdly acknowledging that cross-border shopping for low-tax cigarettes is a major problem for tax enforcement. To retain tax revenue and stop tax evasion, Arkansas has established a low-tax zone on its own side of the border. If this policy is successful in Arkansas other state legislatures may follow suit. To understand the rationale for this policy, the first of its kind among states, it is necessary to understand the problems that sometimes accompany cigarette taxation. . . .
It is important to note that this policy effectively shrinks the "tax border" of Arkansas. While there is still a minimum rate differential of three cents between Arkansas and any low-tax neighbor, this amount is small enough to provide almost no incentive for Arkansas residents to buy in other states. A significant tax differential does still exist however. The differential is now between different jurisdictions within the borders of Arkansas rather than between Arkansas and other states. . . .
Conclusion
Arkansas's border zone tax policy is a first in the world of cigarette excise taxation. This choice of policy is an acknowledgement of what many policy experts have been pointing out for a long time, that cigarette excise taxes are very susceptible to evasion through border shopping and other means, and that as tax differentials increase, these illegal activities become an increasing problem. Arkansas's policy may be successful enough that other states will consider similar policies in the future. While the policy will likely reduce border shopping and increase revenue to some degree, there are pros and cons that need to be weighed when states are considering whether to implement such a policy. The Arkansas experience will be instructive.
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| | | Black Hawk State Trivia and Facts:Arkansas contains over 600,000 acres of lakes and 9,700 miles of streams and rivers. |
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| |  | | Tobacco History: Cigarettes and Literature | The Social History of SmokingGeorge Latimer AppersonChapter 5:The year 1660 that restored Charles II to his throne, restored a gaiety and brightness, not to say frivolity of tone, that had long been absent from English life. The following song in praise of tobacco, taken from a collection which was printed in 1660, is touched with the spirit of the time; though it is really founded on, and to no small extent taken from, some verses in praise of tobacco written by Samuel Rowlands in his "Knave of Clubs," 1611:
To feed on flesh is gluttony, It maketh men fat like swine; But is not he a frugal man That on a leaf can dine? He needs no linnen for to foul His fingers' ends to wipe, That has his kitchin in a box, And roast meat in a pipe. The cause wherefore few rich men's sons Prove disputants in schools, Is that their fathers fed on flesh, And they begat fat fools. This fulsome feeding cloggs the brain And doth the stomach choak But he's a brave spark that can dine With one light dish of smoak.
There is nothing to show that King Charles smoked, nor what his personal attitude towards tobacco may have been.
Read More | The Social History of SmokingGeorge Latimer AppersonChapter 9:Cheroots seem to have been known somewhat earlier. The earliest mention of them is dated about 1670. Sir James Murray, in the great Oxford Dictionary, gives the following interesting extract from an unpublished MS. relating to India, written between 1669 and 1679: "The Poore Sort of Inhabitants vizt. yet Gentues, Mallabars, &c., Smoke theire Tobacco after a very meane, but I judge Original manner, Onely ye leafe rowled up, and light one end, holdinge ye other between their lips ... this is called a bunko, and by ye Portugals a Cheroota." The condemnation of cheroot-or cigar-smoking as a mean method of taking tobacco has an odd look in the light of modern habits and customs. The use of cigars in this country began to come in early in the last century; and by at least 1830 they were being freely, if privately, smoked. It is probable that the reduction of the duty on cigars from 18s. to 9s. a lb., in 1829, had its effect in making cigars more popular. Croker, in 1831, commenting on Johnson's saying that smoking had gone out, said: "The taste for smoking, however, has revived, probably from the military habits of Europe during the French wars; but instead of the sober sedentary pipe, the ambulatory cigar is chiefly used." Croker's shrewd suggestion was probably not far wide of the truth. It is quite likely, if not highly probable, that the revival of smoking in the shape of the cigar was directly connected with the experiences of British officers in Spain and Portugal during the Peninsular War.
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