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Cigarette Taxes in Arkansas

Tax News

There are currently no proposals to increase cigarette taxes in Arkansas.
However, your help is still needed to fight potential federal excise tax increases. Contact your member of congress today and make your voice heard:



Tax Facts

The excise tax on one pack of cigarettes in Arkansas is currently $1.15.


Take a closer look at the cigarette tax dollars being collected in Arkansas in FY2008.


Excise Taxes Sales Taxes Tobacco Settlement Payments Total Smoker Payments FY2008
State:
Local:
$128,865,000
$0
$51,546,000
$0
$57,300,000 $237,711,000


Total tobacco settlement payments to Arkansas to date (1998-2008): $505,200,000


Economic and Tax Profile of Arkansas Smokers

The impact of smoker payments on the incomes of working families was disproportionately greater — more than THREE TIMES higher — than the impact on the minority of smokers who have higher incomes.

  • Arkansas smokers' median household income: $29,988
  • Arkansas non-smokers' median household income: $46,414
  • 42.6% of Arkansas smokers had household incomes LESS THAN $25,000
  • Only 10.6% of Arkansas smokers had household incomes EQUAL TO or GREATER THAN $75,000

Average Tobacco Taxes and Payments

Tax and settlement payment liability paid only by smokers in FY2007 were:

Total average paid per Arkansas smoker in excise and sales taxes: $380
Cost per Arkansas smoker for settlement payments to Arkansas: $120
Total annual payments to Arkansas per smoker: $500

Smoker Payment Comparisons

Payments by Arkansas smokers in FY2008 were:
  • Nearly six times FY2008 revenues from alcoholic beverages ($41.2 million)
  • Nearly two and one-half times as large as FY2008 insurance tax revenues ($95.2 million)
  • Nearly 12 times as large as FY2008 severance tax revenues ($18.4 million)

Arkansas smoker payments of OVER $237 MILLION were large enough to support FY2008 funding for:
  • State Police ($102.9 million) AND Department of Community Correction ($75.8 million) AND Department of Emergency Management ($33 million)
    OR
  • Municipal Aid ($103.5 million) AND Department of Environmental Quality ($46.1 million) AND Game and Fish Commission ($71 million)


Total Smoker Cigarette Payments

Average Cigarette Profits
click to enlarge image
Per year: $237,711,000
Per day: $650,817
Per hour: $27,117
Per minute: $452
Per second: $7.53


Help prevent more state tobacco tax increases.
Call 1.877.857.8074 or email your state representative.