Taxes Going Up Sunday

May 31, 2003
Posted at: 1:35 p.m. CDT

LITTLE ROCK, Ark. -- Tobacco users start paying more starting June 1, when higher state taxes go into effect.

The change raises the tax on a pack of cigarettes by 25 cents, and the price on other tobacco products goes up by seven percent.

In early May, the Legislature passed the increases as a way to help shore up the state budget. Governor Huckabee signed the measure into law.

The new rates are expected to generate about $55 million. That plus a three percent income tax surcharge will provide about $95 million more for prisons and government-subsidized health care for the poor, elderly and disabled.

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