Raising cigarette tax goes on task force lists

Some members of the Legislature's tax-overhaul task force want to explore the possibility of raising the state's excise tax on cigarettes, including an increase of 15 cents a pack, to raise more revenue to compensate for cutting income taxes.

The current tax on cigarettes is $1.15 a pack. Lawmakers also discussed the possibility of imposing an excise tax on e-cigarettes, which are subject to sales taxes but not to any tobacco-specific levies.

Other task force members intend to check out other options, such as imposing a special sales tax on cigarettes and alcohol; increasing excise taxes on beer and wine; and overhauling fuel taxes to raise more money for highways. The committee met this week, heard testimony and then listed preferences for further study.

"I want to be clear that this is not a recommendation of the task force," one of the co-chairmen, Sen. Jim Hendren, R-Sulphur Springs, said Thursday before he read a list of excise and miscellaneous taxes that each of the members indicated on paper that they want to review for possible changes. "This is not a proposal. This is simply a member wanting more information of consideration about some possible change."

Read more: http://www.arkansasonline.com/news/2018/jun/23/raising-cigarette-tax-goes-on-task-forc-1/