Cigar Tax Cap Bill Signed Into Law

Cigar Tax Cap Bill Signed Into Law

Cigar Tax Cap Bill Signed Into Law

Cigar Tax Cap Bill Signed Into Law

Editors Note: Here’s an interesting piece of legal news hot off the presses.  Thankfully for all of us that enjoy cigars, Arkansas becomes yet another state to put limitations on their cigar tax laws in an attempt to slow the persecution of cigar enthusiasts.  There’s not a ton of new information quite yet, but here’s the latest release concerning House Bill 1531.

Arkansas: State Legislative Update #7 – March 26, 2013 – We are excited to inform you that Gov. Mike Beebe signed House Bill 1531 into law this morning; Act 551 of 2013, capping the excise tax on cigars at 50 cents per cigar, takes effect October 1st.

 SECTION 1. 
Arkansas Code § 26-57-208(2), concerning the levy of a tax on tobacco products, is amended to read as follows:
(2)(A)(i) The excise or privilege tax on tobacco products other than cigarettes on the sale by wholesalers to retailers, or by licensed retailers to the Director of the Department of Finance and Administration within the state is sixteen percent (16%) of the manufacturer’s selling  price.

Arkansas becomes the ninth state to cap its ad valorem tax rate on cigars, joining Connecticut, Iowa, Michigan, New Hampshire, Oregon, Rhode Island, Washington, and Wisconsin.

Again, thank you to the Arkansas IPCPR retailers for their support in working with the IPCPR and the Cigar Association of America (CAA) on this vital legislation.

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