Senate Won't Back House Tax Bill

May 7, 2003
Posted at: 12:47 p.m. CDT

LITTLE ROCK, Ark. -- The Senate is showing signs it won't back a bill that cleared the House to combine a temporary income-tax surcharge with a tobacco tax increase.

Introduced before the Senate today is a bill that would raise the cent-per-pack cigarette tax to 36 cents. The House bill would raise the tax by 36 cents. The Senate measure would also raise the percentage increase on smokeless from seven percent, as put forth in the House, to eleven percent. The Senate bill omits the income-tax surcharge.

The Senate bill would raise $70 million, short by $20 million of what is needed.

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