| "A cigarette is the perfect type of a perfect pleasure. It is exquisite, and it leaves one unsatisfied. What more can one want?" ~ from The Picture of Dorian Gray, by Oscar Wilde, (October 16, 1854 – November 30, 1900) was an Irish playwright, poet, writer and novelist. |
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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:Known as the Antique Capital of Oklahoma, Jenks is home to the state's best variety of: Antique Stores, Gift Shops, Galleries, Museums, Crafters Malls, and Collectible Retailers. |
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| |  | | Tobacco History: Cigarettes and Literature | The Social History of SmokingGeorge Latimer AppersonChapter 10:Colonel Harold Malet at the same time wrote—"When I was a cadet at Sandhurst in 1855-58, Milo's cutty pipes were quite the thing, and the selection by cadets of a good one out of a fresh consignment packed in sawdust was eagerly watched by the 'Johns.' Of course we were imitating our parents." It was no doubt these cutty pipes which are referred to in one of the sporting books of Robert Surtees as the "clay pipes of gentility."
Read More | The Social History of Smoking
George Latimer Apperson
Chapter 2:
The properly accomplished gallant not only professed to be curiously learned in pipes and tobacco, but his knowledge of prices and their fluctuations, of the apothecaries' and other shops where the herb was sold, and of the latest and most fashionable ways of inhaling and exhaling the smoke, was, like Mr. Weller's knowledge of London, "extensive and peculiar." It was knowledge of this kind that gained for a gallant reputation and respect by no means to be acquired by mere scholarship and learning.
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