The proposed bill aims to amend the Arkansas Soft Drink Tax Act by introducing a phased reduction of the soft drink tax based on sales tax revenues collected from soft drink sales. It mandates the Department of Finance and Administration to certify the amount of sales tax revenues derived from soft drinks within ninety days after the end of each fiscal year. The bill outlines a structured reduction plan for the tax rates on soft drink syrup, bottled soft drinks, and other related products, with specific thresholds for revenue that trigger reductions in the tax rates over time.

Key provisions include the establishment of a new section in the Arkansas Code that requires annual revenue certification and detailed criteria for tax reductions. The tax on soft drink syrup, for instance, will decrease from $1.26 per gallon to as low as zero cents, depending on the certified revenue levels reaching specified milestones. Additionally, the bill includes a provision for the repeal of the Arkansas Soft Drink Tax Act once all taxes have been reduced to zero, ensuring that the act is removed from the Arkansas Code upon completion of this process.

Statutes affected:
Old version HB1636 Original - 3-3-2025 08:42 AM: 26-57-904(a)
Old version HB1636 V2 - 3-11-2025 10:03 AM: 26-57-904(a)
Old version HB1636 V3 - 3-12-2025 11:53 AM: 26-57-904(a)
HB 1636: 26-57-904(a)