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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:Belle Starr one of the most famous women outlaws is buried in an isolated grave southwest of Porum, Oklahoma near the Eufuala Dam. |
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| |  | | Tobacco History: Cigarettes and Literature | The Social History of SmokingGeorge Latimer AppersonChapter 12:The prejudice against the pipe is not confined to places of indoor resort. There are many men who smoke pipes within doors, who yet would not care to be seen in London smoking a pipe in the street, or in the park. In some circumstances this is quite intelligible. The writer of the Morning Post article remarked with much force and good sense that "Apart from social environment, there is a certain affinity between pipes and clothes. It is considered 'bad form' for a man in a frock-coat and silk hat to be seen smoking a pipe in the streets. If you are wearing a bowler hat and a lounge suit you may walk along with a briar protruding from your lips, and no one will think ill of you. If you are a son of toil garbed in your habit as you work, there is nothing incongruous in a well-seasoned clay or a 'nose-warmer,' which, for convenience, you carry upside down. Not so very long ago it was considered unseemly to smoke a pipe at all in the street unless you belonged to the humbler orders, who inhale their nicotine through the stem of a clay and expectorate with a greater sense of freedom than of responsibility."
Read More | The Social History of Smoking
George Latimer Apperson
Chapter 4: Whether the use of tobacco prevailed as generally among the Cavalier forces is less certain; but as King Charles hated the weed, courtiers may have frowned upon its use. One distinguished cavalier, however, either smoked his pipe, or proposed to do so, on a historic occasion. In Markham's "Life of the Great Lord Fairfax" there is a lively account of how the Duke, then Marquis, of Newcastle, with his brother Charles Cavendish, drove in a coach and six to the field of Marston Moor on the afternoon before the battle. His Grace was in a very bad humour. "He applied to Rupert," says Markham, "for orders as to the disposal of his own most noble person, and was told that there would be no battle that night, and that he had better get into his coach and go to sleep, which he accordingly did." But the decision as to battle or no battle did not rest with Prince Rupert. Cromwell attacked the royal army with the most disastrous results to the King's cause. His Grace of Newcastle woke up, left his coach, and fought bravely, being, according to his Duchess, the last to ride off the fatal field, leaving his coach and six behind him.
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