In Arkansas tax rates have been upped as far as alcoholic drinks and cigarettes are concerned. This AR tax measure has been taken so that shortfalls persisting in state’s budget could be addressed and amended to a certain degree.
This Ark tax measure has drawn ire of consumers of these products as they have cited mostly psychological reasons saying that these items have helped them cope up with various financial problems surrounding them like recession and job loss for example.
This tax of Arkansas has been increased in March 2009 itself and there are some other states that are considering about introduction of same tax measures such as Connecticut, Mississippi, Florida, North Carolina, Michigan and Oregon. States like California, Hawaii and New York
Latest carton tax in Arkansas has come into effect since 1st March 2009. Rate of taxation, as is in effect, is $5.60 for every pack of cigarettes. It was passed on 12th February 2009. This has caused cigarette brands like Marlboro to raise prices of their products in order to cope up with increasing amount of taxes they have to pay. At present price of a pack of cigarettes in Arkansas is $50.
Average rate of cigarette tax at Arkansas in all these years has been 60 cents lower than what is case for United States of America. Present rate of Arkansas tax is 36 percent more than previous tax. This increase is being calculated on selling price of cigarettes. An addition of 32 percent has already been made to these taxes and this has made it a combined increase of 68 percent.
As per business rules and regulations it is mandatory for every pack of cigarette to have a stamp of Arizona tax for it to be deemed a legal product. If aggregate value of Arkansas tax on cigarettes that have not been stamped is in excess of $100 then that seller would be facing a maximum of ten and a minimum of three years in prison.
In February state government had agreed to an Arkansas tax increase of $86.2 million but is now looking to introduce tax deductions. This increase was mainly done with purpose of financing health care programs in this state.