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"If I were founding a university I would begin with a smoking room; next a dormitory; and then a decent reading room and a library. After that, if I still had more money that I couldn't use, I would hire a professor and get some text books" ~ Stephen Butler Leacock, Ph.D , FRSC (30 December 1869 – 28 March 1944) was a Canadian writer and economist.
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Cigarette and Tobacco News:

Border Zone Cigarette Taxation: Arkansas's Novel Solution to the Border Shopping Problem

Fiscal 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:

Garth Brooks was born in Tulsa, Oklahoma. He grew up in Yukon, Oklahoma.



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Tobacco History:
Cigarettes and Literature

The Social History of Smoking

George Latimer Apperson

Chapter 7:

The week-end habit was strong among London tradesmen in those days. Another Connoisseur paper of 1754 refers to the citizens' country-boxes as dusty retreats, because they were always built in close contiguity to the highway so that the inhabitants could watch the traffic, in the absence of anything more sensible to do, where "the want of London smoke is supplied by the smoke of Virginia tobacco," and where "our chief citizens are accustomed to pass the end and the beginning of every week." In the following year there is a description of a visit to Vauxhall by a worthy citizen with his wife and two daughters. After supper the poor man sadly laments that he cannot have his pipe, because his wife, with social ambitions, deems that it is "ungenteel to smoke, where any ladies are in company."

Again, in the Connoisseur's rival, the World, founded and conducted by Edward Moore, there is a letter, in the number dated February 19, 1756, from a citizen who says: "I have the honour to be a member of a certain club in this city, where it is a standing order, That the paper called the World be constantly brought upon the table, with clean glasses, pipes and tobacco, every Thursday after dinner."

Read More

The Social History of Smoking

George Latimer Apperson

Chapter 15:

Addison, in the twenty-eighth Spectator, April 2, 1711, took note of the severance which had taken place between sign and trade, and of the absurdity that the sign no longer had any significance. After satirizing first, the monstrous conjunctions in signs of "Dog and Gridiron," "Cat and Fiddle" and so forth; and next the absurd custom by which young tradesmen, at their first starting in business, added their own signs to those of the masters under whom they had served their apprenticeship; the essayist goes on to say: "In the third place I would enjoin every shop to make use of a sign which bears some affinity to the wares in which it deals. What can be more inconsistent than to see ... a tailor at the Lion? A cook should not live at the Boot, nor a Shoe-maker at the Roasted Pig; and yet for want of this regulation, I have seen a Goat set up before the door of a perfumer, and the French King's Head at a sword-cutler's."

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