| "They threaten me with lung cancer, and still I smoke and smoke. If they'd only threaten me with hard work, I might stop." ~ The Second Neurotic's Notebook, 1966 by Mignon McLaughlin (June 6, 1913 - December 20, 1983), an American journalist and author. |
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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:Clinton Riggs designed the YIELD sign. It was first used on a trial basis in Tulsa, Oklahoma. |
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| |  | | Tobacco History: Cigarettes and Literature | The Social History of SmokingGeorge Latimer AppersonChapter 14: Another eighteenth-century clerical worthy, the famous Dr. Parr, an inveterate smoker, was accustomed to do what Mr. Disney prevented Archbishop Blackburn from doing—he smoked in his vestry at Hatton. This he did before the sermon, while the congregation were singing a hymn, and apparently both parties were pleased, for Parr would say: "My people like long hymns; but I prefer a long clay." Robert Hall, the famous Baptist preacher, having once upon a time strongly denounced smoking as an "odious custom," learned to smoke himself as a result of his acquaintance with Dr. Parr. Parr was such a continual smoker that anyone who came into his company, if he had never smoked before, had to learn the use of a pipe as a means of self-defence. Hall, who became a heavy smoker, is said to have smoked in his vestry at intervals in the service. He probably found some relief in tobacco from the severe internal pains with which for many years he was afflicted.
Read More | The Social History of SmokingGeorge Latimer AppersonChapter 15:Other significant early tobacconists' signs were "Sir Walter Raleigh," "The Virginian" and "The Tobacco Roll." "Sir Walter," as the reputed introducer of tobacco, was naturally chosen as a sign, and his portrait adorns several shop-bills in the Banks Collection. The American Indians, represented under the figure of "The Virginian," and the negroes were hopelessly confused by the early tobacconists, with results which were sometimes surprising from an ethnological point of view. As the first tobacco imported into this country came from Virginia, a supposed "Virginian" was naturally adopted as a tobacco-seller's sign at an early date. An "Indian" or a "Negro" or a figure which was a combination of both, was commonly represented wearing a kilt or a girdle of tobacco leaves, a feathered head-dress, and smoking a pipe. A tobacco-paper, dating from about the time of Queen Anne, bears rudely engraved the figure of a negro smoking, and holding a roll of tobacco in his hand. Above his head is a crown; behind are two ships in full sail, with the sun just appearing from the right-hand corner above. The foreground shows four little black boys planting and packing tobacco, and below them is the name of the ingenious tradesman-"John Winkley, Tobacconist, near ye Bridge, in the Burrough, Southwark." Sixty years or so ago a wooden figure, representing a negro with a gilt loin-cloth and band with feathered head, and sometimes with a tobacco roll, was still a frequent ornament of tobacconists' shops.
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