Arkansas Tobacco Products Tax Act
of 1977 - ACA § 26-57-201 et Seq.
Copyright
© 1987-2007 by
The State of
All rights reserved.
***
CURRENT THROUGH THE 2007 REGULAR SESSION ***
Title 26 Taxation
Subtitle 5. State Taxes
Chapter 57 State Privilege Taxes
Subchapter 2 - Additional Tax on Tobacco Products
§ 26-57-801. Excise tax.
(a) Every person required by the Arkansas Tobacco
Products Tax Act of 1977, § 26-57-201 et seq., to pay the
excise tax on tobacco products and every other person selling
cigarette paper at wholesale within this state shall also pay
an excise tax on the sale of cigarette paper.
(b) The tax shall be in the amount of twenty-five cents
(25cent(s)) per package of approximately thirty-two (32)
sheets.
(c) The tax shall be remitted to the Director of the
Department of Finance and Administration at the same time and
in the same manner as prescribed by the Arkansas Tobacco
Products Tax Act of 1977, § 26-57-201 et seq.
(d) The Director of the Department of Finance and
Administration shall promulgate such regulations as he deems
necessary for the implementation of this section.
HISTORY: Acts
1987, No. 1045, § 1.
§ 26-57-802. Additional tax - Applicability - Reporting
and remitting.
(a) In addition to any other taxes levied on
cigarettes, there is levied a tax of fifty cents (50cent(s))
per one thousand (1000) cigarettes sold in the state.
(b) (1) The additional tax levied in this
section shall also be applicable to cigarettes sold in
Arkansas within three hundred feet (300') of a state line or
in any city that adjoins a state line. It is the intent of
this section that the rate of tax on cigarettes sold in
Arkansas within three hundred feet (300') of a state line or
in any Arkansas city that adjoins a state line shall be:
(A) The rate imposed by law on cigarettes sold in
the adjoining state plus the fifty cents (50cent(s)) per one
thousand (1,000) cigarettes levied in this section and cited
in § 26-57-803(a)(2); or
(B) The rate imposed by law on cigarettes sold in
the adjoining state plus the twenty-five cents (25cent(s)) per
one thousand (1,000) cigarettes levied in this section and
cited in § 26-57-803(a)(3).
(2) The rate shall not exceed the total tax levied
on cigarettes in this state.
(c) The additional tax levied in this section shall be
reported and remitted in the same manner and at the same time
as other taxes levied on cigarettes in the Arkansas Tobacco
Products Tax Act, §§ 26-57-201 - 26-57-254.
(d) (1) The first three million dollars
($3,000,000) of the net revenues derived from the additional
tax levied in this section shall be deposited into the State
Treasury to the credit of the Aging and Adult Services Fund
Account, to be used exclusively for transportation services
benefitting the elderly, including the Meals on Wheels Program
and the remainder shall be deposited into the State Treasury
as general revenues.
(2) As used in this subsection and pertaining to
taxes levied on cigarettes, "the first three million dollars
($3,000,000) of the net revenues derived from the additional
tax" means the first three million dollars ($3,000,000) each
year of the net revenues derived from the additional tax.
(e) As provided in § 26-57-244, the Director of the
Department of Finance and Administration may make a direct
assessment of excise tax against any person in possession of
an untaxed tobacco product or unstamped cigarettes.
HISTORY: Acts
1991, No. 1135, § 18; 1991, No. 1211, § 1-4; 2001, No. 1173, §
1; 2007, No. 817, § 3.
NOTES:
Publisher's Notes.
Acts 1991, No. 1211, § 5 provided:
"The tax levied herein shall be in effect on and after July 1,
1991."
Amendments.
The 2001 amendment rewrote the section.
The 2007 amendment added (e).
§ 26-57-803. Additional tax - Applicability.
(a) (1) In addition to the excise or
privilege taxes levied under §§ 26-57-208 and 26-57-802, there
is levied a tax of four dollars and seventy-five cents ($4.75)
per one thousand (1,000) cigarettes sold in the state.
(2) Whenever there are two (2) adjoining cities,
each with a population of five thousand (5,000) or more
separated by a state line, the tax on cigarettes sold in such
adjoining Arkansas city shall be at the rate imposed by law on
cigarettes sold in the adjoining city outside of Arkansas plus
the fifty cents (50cent(s)) per one thousand (1,000)
cigarettes presently imposed by § 26-57-802. The tax shall not
exceed the tax upon cigarettes imposed by this subchapter.
(3) The tax on cigarettes sold in Arkansas within
three hundred feet (300') of a state line, in any Arkansas
city which adjoins a state line, or in any city which is
separated only by a navigable river from a city which adjoins
a state line shall be at the rate imposed by law on cigarettes
sold in the adjoining state plus the twenty-five cents
(25cent(s)) per one thousand (1,000) cigarettes presently
imposed by § 26-57-802. The tax shall not exceed the tax upon
cigarettes imposed by this subchapter.
(b) In addition to the tax imposed by § 26-57-208(2),
there is levied an additional excise or privilege tax on the
sale of tobacco products other than cigarettes by wholesalers
to retailers or by licensed retailers to the Director of the
Department of Finance and Administration at seven percent (7%)
of the manufacturer's selling price. The tax shall be computed
before discounts.
(c) [Repealed.]
(d) (1) (A) The taxes levied by this
section shall be reported and paid by wholesalers licensed
pursuant to § 26-57-214.
(B) However, retailers shall be liable for
reporting and paying these taxes when a retailer purchases
tobacco products directly from a manufacturer or from a
wholesaler or distributor not licensed pursuant to §
26-57-214.
(2) (A) Any taxpayer who fails to report and
remit the tobacco tax due on tobacco products purchased from
manufacturers, distributors, or wholesalers who are not
licensed under § 26-57-214 shall be subject to the following
penalties:
(i) Five percent (5%) of the total tobacco tax
due for the first offense;
(ii) Twenty percent (20%) of the total tobacco
tax due for the second offense; and
(iii) Twenty-five percent (25%) of the total
tobacco tax due for the third and any subsequent offenses.
(B) In addition, the taxpayer's retail
cigarette/tobacco permit shall be revoked for a period of
ninety (90) days for the third and any subsequent offenses.
(3) The provisions of this subsection shall not
affect the provisions of § 26-57-228.
(e) As provided in § 26-57-244, the director may make a
direct assessment of excise tax against any person in
possession of an untaxed tobacco product or unstamped
cigarettes.
HISTORY: Acts 1992
(2nd Ex. Sess.), No. 2, §§ 1, 2, 5; 1993, No. 1177, § 1; 1997,
No. 1339, § 1; 1999, No. 1246, §§ 4, 5; 2007, No. 817, § 4;
2007, No. 827, § 230.
NOTES:
Publisher's Notes.
Acts 1997, No. 1339, became law without the Governor's
signature.
Amendments.
The 1993 amendment, effective retroactively to February 1,
1993, in (a)(3) inserted "or in any city which is separated
only by a navigable river from a city which adjoins a state
line" and substituted "the twenty-five cents (25cent(s))" for
"fifty cents (50cent(s))."
The 1997 amendment, in (b), substituted "other than
cigarettes, on the sale by wholesalers to retailers, or by
licensed retailers, to the Director of the Department of
Finance and Administration at nine percent" for "other than
cigarettes, on the first sale to wholesalers or retailers
within the state at nine percent," and substituted "computed
before discounts and shall" for "computed on the actual
manufacturer's invoice price before discounts and deals and
shall."
The 1999 amendment deleted "and shall be paid by the
wholesaler, or by the retailer if he purchases directly from
the manufacturer" from the end of (b); added (d); and made
stylistic changes.
The 2007 amendment by No. 817 added (e).
The 2007 amendment by No. 827 rewrote (a)(1) and (b), and
deleted (c).
§ 26-57-804. Additional tax on cigarettes.
(a) In addition to the excise or privilege taxes
levied under §§ 26-57-208, 26-57-802, 26-57-803, and
26-57-1101, there is levied an additional tax of twelve
dollars and fifty cents ($12.50) per one thousand (1,000)
cigarettes sold in the state.
(b) (1) (A) Whenever there are two (2)
adjoining cities each with a population of five thousand
(5,000) or more separated by a state line, the tax on
cigarettes sold in the adjoining Arkansas city shall be at the
rate imposed by law on cigarettes sold in the adjoining city
outside Arkansas.
(B) The tax shall not exceed the tax upon
cigarettes imposed by Arkansas law.
(2) (A) The tax on cigarettes sold in
Arkansas within three hundred feet (300') of a state line in
any Arkansas city that adjoins a state line or in any city
that is separated only by a navigable river from a city that
adjoins a state line shall be at the rate imposed by law on
cigarettes sold in the adjoining state.
(B) The tax shall not exceed the tax upon
cigarettes imposed by Arkansas law.
(3) (A) A wholesaler or retailer shall not
sell cigarettes to a retailer located outside a border zone
described in subdivisions (b)(1) and (2) of this section
unless the full amount of tax levied by this section and §§
26-57-208, 26-57-802, 26-57-803, and 26-57-1101 without regard
to any reduced border zone rate has been paid as evidenced by
cigarette stamps affixed to each container of cigarettes.
(B) A retailer located outside a border zone
described in subdivisions (b)(1) and (2) of this section shall
not possess or offer for sale cigarettes unless the full
amount of tax levied by this section and §§ 26-57-208,
26-57-802, 26-57-803, and 26-57-1101 without regard to any
reduced border zone rate has been paid as evidenced by
cigarette stamps affixed to each container of cigarettes.
(C) A violation of this subdivision (b)(3) shall
be grounds for the suspension or revocation of a permit or
license issued by the Director of the Arkansas Tobacco Control
Board.
(c) The exemptions and waivers allowed under §§
26-57-209 and 26-57-210 shall apply to this section.
(d) [Repealed.]
(e) The additional tax levied under this section shall
be imposed, reported, remitted, and administered in the same
manner and at the same time as other taxes levied on
cigarettes in the Arkansas Tobacco Products Tax Act of 1977, §
26-57-201 et seq.
(f) The Director of the Department of Finance and
Administration shall not pay the commission authorized by §
26-57-236(g) with respect to the tax levied by this section.
(g) The revenue derived from the additional tax imposed
by this section shall be credited to the General Revenue Fund
Account of the State Apportionment Fund, there to be
distributed with the other gross general revenue collections.
(h) As provided in § 26-57-244, the director may make a
direct assessment of excise tax against any person in
possession of unstamped cigarettes.
HISTORY: Acts 2003
(1st Ex. Sess.), No. 38, § 1; 2007, No. 817, § 5; 2007, No.
827, § 231.
NOTES:
A.C.R.C. Notes.
As enacted by Acts 2003 (1st Ex. Sess.), No. 38, § 1,
subsection (a) began:
"Beginning June 1, 2003,".
Amendments.
The 2007 amendment by No. 817 added (h).
The 2007 amendment by No. 827 deleted (d).
(a) (1) In addition to the excise or privilege taxes levied under §§ 26-57-208, 26-57-803, and 26-57-1102, there is levied an additional tax on tobacco products other than cigarettes on the first sale to wholesalers or retailers within the state at seven percent (7%) of the manufacturer's selling price.
(2) The tax shall be computed on the manufacturer's actual invoice price before discounts and deals.
(b) (1) The tax levied by this section shall be reported and paid by wholesalers licensed pursuant to § 26-57-214.
(2) However, retailers shall be liable for reporting and paying this tax when a retailer purchases tobacco products directly from a manufacturer or from a wholesaler or distributor not licensed pursuant to § 26-57-214.
(c) The exemptions and waivers allowed under §§ 26-57-209 and 26-57-210 shall apply to this section.
(d) The revenue derived from the additional tax imposed by this section shall be credited to the General Revenue Fund Account of the State Apportionment Fund, there to be distributed with the other gross general revenue collections for that month.
(e) As provided in § 26-57-244, the Director of the Department of Finance and Administration may make a direct assessment of excise tax against any person in possession of an untaxed tobacco product.
HISTORY: Acts 2003 (1st Ex. Sess.), No. 38, § 2; 2007, No. 817, § 6.
NOTES:
A.C.R.C. Notes.
As enacted by Acts 2003 (1st Ex. Sess.), No. 38, § 2, subdivision (a)(1) began:
"Beginning June 1, 2003,".
Amendments.
The 2007 amendment added (e).
Title 26 Taxation
Subtitle 5. State Taxes
Chapter 57 State Privilege Taxes
Subchapter 11 - Tax on Tobacco Products to Fund Breast
Cancer Control and Research
§ 26-57-1101. Additional
tax - Cigarettes.
(a) In addition to the excise or privilege taxes
levied under §§ 26-57-208 and 26-57-802 there is hereby levied
a tax of one dollar twenty-five cents ($1.25) per one thousand
(1000) cigarettes sold in the state.
(b) As provided in § 26-57-244, the Director of the
Department of Finance and Administration may make a direct
assessment of excise tax against any person in possession of
unstamped cigarettes.
HISTORY: Acts
1997, No. 434, § 5; 2007, No. 817, § 7.
NOTES:
Amendments.
The 2007 amendment added (b) and made a related change.
§ 26-57-1102. Additional tax - Tobacco products other
than cigarettes.
(a) (1) In addition to the tax imposed by §
26-57-208(2), there is imposed an additional excise or
privilege tax on tobacco products other than cigarettes on the
first sale to wholesalers or retailers within the state at two
percent (2%) of the manufacturer's selling price.
(2) The tax shall be computed on the actual
manufacturer's invoice price before discounts and deals.
(b) (1) (A) The taxes levied by this
section and § 26-57-1101 shall be reported and paid by
wholesalers licensed pursuant to § 26-57-214.
(B) However, retailers shall be liable for
reporting and paying these taxes when a retailer purchases
tobacco products directly from a manufacturer or from a
wholesaler or distributor not licensed pursuant to §
26-57-214.
(2) (A) Any taxpayer who fails to report and
remit the tobacco tax due on tobacco products purchased from
manufacturers, distributors, or wholesalers who are not
licensed under § 26-57-214 shall be subject to the following
penalties:
(i) Five percent (5%) of the total tobacco tax
due for the first offense;
(ii) Twenty percent (20%) of the total tobacco
tax due for the second offense; and
(iii) Twenty-five percent (25%) of the total
tobacco tax due for the third and any subsequent offenses.
(B) In addition, the taxpayer's retail
cigarette/tobacco permit shall be revoked for a period of
ninety (90) days for the third and any subsequent offenses.
(3) The provisions of this subsection shall not
affect the provisions of § 26-57-228.
(c) As provided in § 26-57-244, the Director of the
Department of Finance and Administration may make a direct
assessment of excise tax against any person in possession of
untaxed tobacco products.
HISTORY: Acts
1997, No. 434, § 6; 1999, No. 1246, § 6; 2007, No. 817, § 8.
NOTES:
Amendments.
The 1999 amendment added (b); and deleted "and shall be paid
by the wholesaler, or by the retailer if he purchases directly
from the manufacturer" from the end of present (a); and made
stylistic changes.
The 2007 amendment added (c).
§ 26-57-1103. Deposit of general
revenues.
(a) Notwithstanding Acts 2001 (1st Ex. Sess.), No. 2,
§ 11, beginning July 1, 2005, twenty-nine percent (29%) of all
moneys collected from the additional tax levied in §§
26-57-1101 and 26-57-1102 shall be deposited into the State
Treasury as special revenue and distributed as follows:
(1) Twenty-five percent (25%) shall be credited to
the University of Arkansas Medical Center Fund;
(2) Eight and one-third percent (81/3%) shall be
credited to the Breast Cancer Control Fund;
(3) Eight and one-third percent (81/3%) shall be
credited to the Breast Cancer Research Fund;
(4) Eight and one-third percent (81/3%) shall be
credited to the Miscellaneous Agencies Fund Account for the
Arkansas Prostate Cancer Foundation; and
(5) Fifty percent (50%) shall be credited to the
Aging and Adult Services Fund Account of the Department of
Human Services Fund to be used to assist the Meals-on-Wheels
Program.
(b) [Repealed]
HISTORY: Acts
1997, No. 434, § 9; 2001, No. 1669, § 33; 2001, No. 1698, § 2;
2005, No. 2219, § 1; 2007, No. 1236, § 17.
NOTES:
Amendments.
The 2001 amendment by Nos. 1669 and 1698 both substituted
"Twenty-nine percent (29%)" for "Ten percent (10%)," and
substituted "special revenue, fifty ... § 26-57-1106(a)" for
"general revenues."
The 2005 amendment rewrote this section.
The 2007 amendment, in (a)(1), substituted "Twenty" for
"Except as provided in subsection (b) of this section, twenty"
and substituted "University of Arkansas Medical Center Fund"
for "Arkansas Rx Program Fund"; and deleted former (b).
§ 26-57-1104. Reporting and remittance.
The additional taxes levied in §§ 26-57-1101 and 26-57-1102
shall be reported and remitted in the same manner and at the
same time as other taxes levied on cigarettes in the Arkansas
Tobacco Products Tax Act of 1977, §§ 26-57-201 - 26-57-254.
HISTORY: Acts
1997, No. 434, § 10.
§ 26-57-1105. Applicability.
The tax levied in §§ 26-57-1101 and 26-57-1102 shall be in
effect on and after July 1, 1997 and shall apply to any
inventory or stocks of cigarettes or tobacco products held by
a wholesaler or retailer on that date.
HISTORY: Acts
1997, No. 434, § 11.
§ 26-57-1106. Distribution of
funds for breast cancer research and control - Allocation of
moneys.
(a) All remaining moneys collected from the
additional tax levied in §§ 26-57-1101 and 26-57-1102 shall be
deposited into the State Treasury as special revenues to be
distributed as follows:
(1) Twenty percent (20%) shall be credited to the
Breast Cancer Research Fund, which is created on the books of
the Treasurer of State, the Auditor of State, and the Chief
Fiscal Officer of the State to be used exclusively for the
purposes set forth in § 20-15-1303; and
(2) (A) Eighty percent (80%) shall be
credited to the Breast Cancer Control Fund, which is created
on the books of the Treasurer of State, the Auditor of State,
and the Chief Fiscal Officer of the State to be used
exclusively for the purposes set forth in § 20-15-1304 and at
the option of the Department of Health in an amount not to
exceed the amount appropriated by the General Assembly for the
purpose of cervical cancer control.
(B) The Director of the Department of Health
shall be the disbursing officer for the Breast Cancer Control
Fund, and the Chancellor of the University of Arkansas for
Medical Sciences shall be the disbursing officer for the
Breast Cancer Research Fund.
(b) The moneys in the Breast Cancer Research Fund are
to be allocated to the Breast Cancer Research Program for the
awarding of grants, chairs, and contracts to researchers for
research with respect to the cause, cure, treatment,
prevention, and earlier detection of breast cancer and for
developing leadership in research in Arkansas.
(c) (1) The moneys in the Breast Cancer Control
Fund for the control of breast cancer are to be allocated
according to the recommendations of the Breast Cancer Control
Advisory Board, which shall establish the scope of services of
the program and programmatic priorities based on the analysis
of available information.
(2) The board shall also be responsible for
developing eligibility criteria to be applied in evaluating
requests for breast cancer control financial assistance from
screened women who are found to be in need of diagnostic and
treatment services.
(3) The board shall also review contractual
agreements for breast cancer control with providers who will
be rendering services through the program.
HISTORY: Acts
1997, No. 434, § 12; 2001, No. 1698, § 3; 2001, No. 1669, §
34.
NOTES:
Amendments.
The 2001 amendment by identical act Nos. 1698 and 1669
substituted "All remaining" for "Ninety percent (90%) of all"
in the introductory language of (a); substituted "the
Treasurer of State, Auditor of State and" for "the State
Treasurer, State Auditor and" in (a)(1) and (a)(2);
substituted " § 20-15-1303" for " § 20-15-303" in (a)(1);
substituted " § 20-15-1304 and, at ... cervical cancer
control" for " § 20-15-304" in (a)(2); in (c), inserted "for
the control of breast cancer," deleted "advisory" preceding
"board shall," and inserted "for breast cancer control";
subdivided (c); and made minor stylistic changes throughout.
§ 26-57-1107. Regulations.
The Department of Finance and Administration is hereby
authorized to promulgate regulations as necessary to implement
the tax provisions of this subchapter.
HISTORY: Acts
1997, No. 434, § 13.
§ 26-57-1108. Appropriation from general revenue fund -
Additional tax not collected.
(a) The taxes levied by this subchapter shall not be
collected during any fiscal year for which the General
Assembly has appropriated at least eight hundred thousand
dollars ($800,000) from general revenues to the Breast Cancer
Research Fund and at least three million two hundred thousand
dollars ($3,200,000) of general revenues to the Breast Cancer
Control Fund and funded those appropriations in Category A of
the Revenue Stabilization Law for that fiscal year.
(b) The commission authorized by § 26-57-236(g) shall
be at the rate of three and eight-tenths percent (3.8%) during
any fiscal year for which the General Assembly has
appropriated at least eight hundred thousand dollars
($800,000) from general revenues to the Breast Cancer Research
Fund and at least three million two hundred thousand dollars
($3,200,000) of general revenues to the Breast Cancer Control
Fund and funded those appropriations in Category A of the
Revenue Stabilization Law for that fiscal year, otherwise the
commission shall be as prescribed in § 26-57-236(g).
HISTORY: Acts
1997, No. 434, § 14.