October 2, 2013 (Little Rock, Ark.) — Yesterday, the Arkansas premium cigar tax cap went into effect. Earlier this year working with CAA and the IPCPR state affiliate, the Arkansas Premium Cigar Council, we were able to pass legislation that caps the state excise tax on premium cigars at 50 cents per cigar. The previous tax rate in Arkansas was 68% of the manufacture’s price.
The cap will benefit retailers, consumers, and in turn the state by encouraging in-state purchases of premium cigars. The fixed tax rate will allow premium cigar retailers to better price compete with big box dealers and generate in-state jobs and tax revenue.
If you would like to have a tax cap enacted in your state IPCPR is ready to help! There are currently 26 state associations across the country and more forming every year. You can contact us directly for more information regarding an association in your state.
IPCPR is the voice of the premium cigar & pipe retailer, we appreciate your membership and will continue to keep you updated on legislative activity across the country.