| "If I'd taken my doctor's advice and quit smoking when he advised me to, I wouldn't have lived to go to his funeral," ~ George Burns (Jan 20, 1896 to March 9, 1996) was a famous American comedian and actor. |
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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:Antlers bill itself as "The Deer Capital of the World and gateway to Southeast Oklahoma." |
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| | | | Tobacco History:
Cigarettes and Literature | The Social History of SmokingGeorge Latimer AppersonChapter 10:George Fitz-Boodle recounts how, as a boy, he was flogged for smoking, and how, at Oxford, smoking among other villainies led to his rustication. Later his tobacco, combined with insolence to his tobacco-hating colonel, conducted him out of the army into the retirement of civil life; and so on and so on. There is, of course, an element of exaggeration in all this; but Mr. Fitz-Boodle's experiences and reflections throw much light on the social history of smoking in the early decades of the nineteenth century. Mr. Harry Furniss, in the preface to his edition of Thackeray, has an admirably terse and pertinent paragraph on this aspect of the "Fitz-Boodle Papers." He says—"No gentleman in those days was seen smoking even a 'weed' in the streets. Cigarettes were practically unheard of in England, and outside one's private smoking-room pipes were tabooed. Men in Society slunk into their smoking-rooms, or, when there was no smoking-room, into the kitchen or servants' hall, after the domestics had retired. A smoking-jacket was worn in the place of their ordinary evening coat, and their well-oiled, massive head of hair was protected by a gorgeously decorated smoking-cap. Thus the odour of tobacco was not brought into the drawing-room."
Read More | The Social History of Smoking
George Latimer Apperson
Chapter 2:
Peers and squires and parsons and peasants alike smoked. The parson of Thornton, in Buckinghamshire, was so devoted to tobacco that when his supply of the weed ran short, he is said to have cut up the bell-ropes and smoked them! This is dated about 1630. In the well-known description of the famous country squire, Mr. Hastings, who was remarkable for keeping up old customs in the early years of the seventeenth century, we read of how his hall tables were littered with hawks' hoods, bells, old hats with their crowns thrust in, full of pheasants' eggs; tables, dice, cards, and store of tobacco-pipes.
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