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if the bordering state does not levy a state income tax.9 There is also a border equalization law for the states motor fuels tax that keeps the tax rate in qualified border areas from being more than 1 cent greater than the neighboring jurisdiction.10 These policies, along with the new cigarette tax policy outlined above, are unique to Arkansas and represent an acknowledgement of the fact that tax competition and tax evasion are real and are significant concerns for lawmakers when they are creating tax policy

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