Fewer Cigarettes Sell in Arkansas, But Revenues Rise - KAIT Jonesboro, AR - Region 8 News, weather, sports

Little Rock, AR

Fewer Cigarettes Sell in Arkansas, But Revenues Rise

JANUARY 25, 2006 - Posted at 8:04 a.m. CST

 

LITTLE ROCK, AR - Althought slightly fewer cigarettes were sold in Arkansas last year, the state enjoyed about a $4 million increase in cigarette sales tax revenues, thanks mostly to neighboring Oklahoma.

Arkansas' cigarette tax collections rose from more than $125 million in 2004 to more than $129 million last year.  But the number of cigarette packs sold in the state fell from more than $228 million to more than $227 million.

Assistant Revenue Commissioner John Theis says that when Oklahoma's tax increased from 23 cents a pack to $1.03 per pack, nearby Arkansas cities could no longer charge a tax lower than the Arkansas rate of 59 cents per pack.  The tax in those cities rose from 26 cents per pack to the statewide rate.

The end result was Arkansas collected more sales taxes because Oklahomans were buying cigarettes in Arkansas and Arkansans who previously paid less in sales taxes for their cigarettes were paying more.

(Copyright 2006 by The Associated Press.  All Rights Reserved.)

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