House Passes Tobacco Tax, Extra Surcharge

May 6, 2003
Posted at: 2:00 p.m. CDT

LITTLE ROCK, Ark. -- The House this morning passed a compromise bill that includes a modest tobacco tax increase and a small income tax surcharge to generate revenue for a state budget.

The bill needed a supermajority, or three-quarters vote, and got it with six votes to spare with 81 in favor and 18 against.

The bill would be expected to generate $95 million.

It would add a three percent surcharge on state income tax, which would end in two years.

It would also add 25 cents per pack to the wholesale price for cigarettes and a seven percent wholesale hike on other tobacco products.

Earlier, a House Committee rejected a proposal to raise the sales tax by a quarter of a cent.

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