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State's tax on cigarettes

  • Feb. 17th, 2009 at 1:29 PM

Local lawmakers and smokers commented on the bill approved last week that will raise the state's tax on cigarettes by 56 cents a pack as well as increasing other tobacco taxes to pay for a statewide trauma system and other health programs.

Speaker of the House Robbie Wills said, "I'm certainly glad it passed the Senate. We worked hard on the House end. Now we have the funding we need to get a statewide trauma system, to help us keep our community health centers open and the in-home care program for seniors. I think it's a great day for Arkansas and the health care for our people."

Kareem Kattom, manager of the Horton's Sinclair gas station on Harkrider Street, reaches for a pack of cigars for a customer on Saturday. LIBERTY PARKS PHOTO

Wills noted Arkansas is the only state in the country without a level one trauma center and one of three without a trauma system. The new funding will go toward technology upgrades, training for first responders and funding for staffing of the trauma team, he said.

State Sen. Gilbert Baker said "I voted against the tax. I strongly support funding a level one trauma system. I just don't think in these hard economic times that we should be raising taxes on anybody."

According to the AP, Gov. Mike Beebe's office is planning a signing ceremony this week, and the tax increase will become effective March 1. The increase will place the tax on cigarettes at $1.15 per pack. The legislation will also raise the tax on other tobacco products, such as cigars and pipe and chewing tobacco, from 32 percent of the wholesale price to 68 percent.

Some local smokers say they are not happy about the new state tax.

LaToya Robinson of Conway said, "I think it's unfair. I think it's hypocritical. The argument was because cigarette smoking is bad for you and it affects the quality of life, to tax the smokers. Why not do something to help people stop smoking?" She favored funding children's education and adult smoking cessation programs.

"I think that's a better method than raising taxes," she said. "Now not only are we hurting our lungs and our heart, now we're hurting our pocket."

Upon hearing information about the statewide trauma system, she said, "If it's going to something like this, that's cool." She insisted some of the revenue should go toward youth smoking prevention."

"Unless you want to create more smokers to make money off us," she added.

Michelle McDaniel of Conway said of the tax, "I don't like it. I feel like all smokers are being picked on. I'll probably buy less cigarettes."

Kareem Kattom of Horton's Sinclair convenience store said he has not seen a change in people's smoking habits when prices have increased in the past.

"The bad thing about it for me, I have to keep the same inventory, but it's worth more," Kattom said. "People complain, but they're still buying them."

The increase precedes a federal tax increase on cigarettes from 39 cents a pack to almost $1.01 on April 1, the AP reported. Two major U.S. cigarette companies, Altria Group Inc., which owns Philip Morris USA, and Lorillard Inc., which makes Newport brand cigarettes, increased their carton and pack prices recently, the AP said.