| "Tobacco, divine, rare superexcellent tobacco, which goes far beyond all panaceas, potable gold and philosopher's stones, a sovereign remedy to all diseases." ~ Robert Burton (8 February 1577 – 25 January 1640) was an English scholar and vicar at Oxford University, best known for writing The Anatomy of Melancholy. |
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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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| | | Hawaii State Trivia and Facts:Oklahoma has the largest Native American population of any state in the U.S. Many of the 250,000 American Indians living in Oklahoma are descended from the 67 tribes who inhabited the Indian Territory. Oklahoma is tribal headquarters for 39 tribes. |
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| | | | Tobacco History:
Cigarettes and Literature | The Social History of SmokingGeorge Latimer AppersonChapter 8:If smoking had died out at Oxford its decline must have been rapid. When a certain young John James was an undergraduate of Queen's, 1778 to 1781, he and his correspondents spoke severely of the "miserable condition of Fellows who (under the liberal pretence of educating youth) spend half their lives in smoking tobacco and reading the newspapers." About 1800 the older or more old-fashioned of the Fellows at New College, "not liking the then newly introduced luxury of Turkey carpets," says Mr. G.V. Cox, in his "Recollections of Oxford," 1868, "often adjourned to smoke their pipe in a little room opposite to the Senior Common-room, now appropriated to other uses, but then kept as a smoking-room." A Mr. Rhodes, a one-time Fellow of Worcester College, who was elected Esquire Bedel in Medicine and Arts in 1792, had a very peculiar way of enjoying his tobacco. Mr. Cox says: "On one occasion, when I had to call upon him, I found him drinking rum and water, and enjoying (what he called his luxury) the fumes of tobacco, not through a pipe or in the shape of a cigar, but burnt in a dish!"
Read More | The Social History of Smoking
George Latimer Apperson
Chapter 4:Time brought its revenges. The dead Protector was not treated too respectfully by his soldiery. Evelyn, describing Cromwell's "superb funeral," says that the soldiers in the procession were "drinking and taking tobacco in the streets as they went."
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