Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
 State of Arkansas                    As Engrossed:       S4/8/21
 93rd General Assembly                        A Bill
 Regular Session, 2021                                                             SENATE BILL 337
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 By: Senator Bledsoe
 By: Representatives Bryant, McKenzie
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                                   For An Act To Be Entitled
                  AN ACT TO REINSTATE THE BORDER CITY TAX RATE FOR
                  CIGARETTES AND OTHER TOBACCO PRODUCTS; AND FOR OTHER
                  PURPOSES.
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                                               Subtitle
                         AN ACT TO REINSTATE THE BORDER CITY TAX
                         RATE FOR CIGARETTES AND OTHER TOBACCO
                         PRODUCTS.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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         SECTION 1.        Arkansas Code  26-57-208(1), concerning the excise tax
 levied on cigarettes and other tobacco products, is amended to read as
 follows:
         (1)(A)      The excise or privilege tax on cigarettes sold in this state is
 ten dollars and fifty cents ($10.50) per one thousand (1,000) cigarettes
 sold.
                  (B)(i)     When two (2) adjoining cities each have a population of
 five thousand (5,000) or more and are 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 of Arkansas.
                           (ii)   The tax shall not exceed the tax upon cigarettes
 imposed by this subchapter.
                  (C)(i)     The 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 at the rate imposed by law on cigarettes sold in the
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     As Engrossed:       S4/8/21                                                        SB337
 adjoining state.
                        (ii)    The tax shall not exceed the tax upon cigarettes
 imposed by this subchapter.
               (D)(i)     The tax on cigarettes shall be at the rate imposed by law
 on cigarettes sold in the adjoining state when the cigarettes are sold in an
 Arkansas city or incorporated town whose corporate limits adjoin the
 corporate limits of an Arkansas border city.
                        (ii)    As used in subdivision (1)(D)(i) of this section,
 Arkansas border city means a city that is entitled to the border zone
 cigarette tax rate and is separated by a navigable river from a city in the
 other state that is located in a metropolitan statistical area designated by
 the United States Bureau of the Census with a population of at least one
 million (1,000,000).
                        (iii)     The tax shall not exceed the tax upon cigarettes
 otherwise imposed under Arkansas law.
               (E)(i)     The reduced border zone tax rates stated in subdivisions
 (1)(B)(D) of this section apply only to sales made at retail by Arkansas
 border zone retailers to actual consumers of the cigarettes.
                        (ii)(a)       The sale of cigarettes by an Arkansas border zone
 retailer to any other retailer or wholesaler does not qualify for the reduced
 border zone tax rate.
                                (b)    The full amount of Arkansas cigarette excise tax
 will be due on any cigarettes sold in such a manner; and
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      SECTION 2.        Arkansas Code  26-57-802(a), concerning an additional tax
 levied on cigarettes, is amended to read as follows:
      (a)(1)     In addition to any other taxes levied on cigarettes, there is
 levied a tax of fifty cents (50) per one thousand (1,000) cigarettes sold in
 the state.
               (2)    The additional tax levied in this section also applies to
 cigarettes sold in Arkansas within three hundred feet (300') of a state line
 or in any city that adjoins a state line.
               (3)    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
 taxed at the following rates:
                        (A)     The rate imposed by law on cigarettes sold in the
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     As Engrossed:       S4/8/21                                                       SB337
 adjoining state plus the fifty cents (50) per one thousand (1,000)
 cigarettes levied in this section and cited in  2657803(a)(2); or
                       (B)     The rate imposed by law on cigarettes sold in the
 adjoining state plus the twenty-five cents (25) per one thousand (1,000)
 cigarettes levied in this section and cited in  2657803(a)(3).
               (2)    The rate shall not exceed the total tax levied on cigarettes
 in this state.
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      SECTION 3.       Arkansas Code  26-57-803(a), concerning an additional tax
 levied on cigarettes and other tobacco products, is amended to read as
 follows:
      (a)(1)      In addition to the excise or privilege taxes levied under 
 2657208 and 2657802, 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)    When two (2) or more adjoining cities each have a population
 of five thousand (5,000) or more and are 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 of Arkansas
 plus the fifty cents (50) per one thousand (1,000) cigarettes presently
 imposed by  2657802. The tax shall not exceed the tax upon cigarettes
 imposed by this subchapter.
               (3)    Subdivision (a)(2) of this section does not apply to an
 Arkansas city or incorporated town:
                       (A)     That is separated by a navigable river from a city in
 another state that is located in a metropolitan statistical area designated
 by the United States Bureau of the Census as having a population of at least
 one million (1,000,000); or
                       (B)     Whose corporate borders adjoin a city that meets the
 criteria under subdivision (a)(3)(A) of this section.
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      SECTION 4.       Arkansas Code  26-57-804(a), concerning an additional tax
 levied on cigarettes, is amended to read as follows:
      (a)(1)      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.
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     As Engrossed:       S4/8/21                                                      SB337
               (2)(A)     When two (2) or more adjoining cities each have a
 population of five thousand (5,000) or more and are 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.
               (3)    Subdivision (a)(2) of this section does not apply to an
 Arkansas city or incorporated town:
                        (A)    That is separated by a navigable river from a city in
 another state that is located in a metropolitan statistical area designated
 by the United States Bureau of the Census as having a population of at least
 one million (1,000,000); or
                        (B)    Whose corporate borders adjoin a city that meets the
 criteria under subdivision (a)(3)(A) of this section.
               (4)(A)     A wholesaler or retailer shall not sell cigarettes to a
 retailer located outside a border zone described in subdivisions (a)(2) and
 (3) of this section unless the full amount of tax levied by this section and
  2657208, 2657802, 2657803, and 26571101 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 (a)(2) and (3) of this section shall not possess or offer for
 sale cigarettes unless the full amount of tax levied by this section and 
 2657208, 2657802, 2657803, and 26571101 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 (a) (4) is grounds for
 the suspension or revocation of a permit or license issued by the Director of
 Arkansas Tobacco Control.
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      SECTION 5.        Arkansas Code  26-57-806(a) and (b), concerning an
 additional tax levied on cigarettes, is amended to read as follows:
      (a)(1)     In addition to the excise or privilege taxes levied under 
 26-57-208, 26-57-802, 26-57-803, 26-57-804, and 26-57-1101, there is levied
 an additional tax of twenty-eight dollars ($28.00) per one thousand (1,000)
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     As Engrossed:   S4/8/21                                                        SB337
 cigarettes sold in the state.
             (2)(A)     When two (2) or more adjoining cities each have a
 population of five thousand (5,000) or more and are 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.
             (3)(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.
             (4)(A)     The tax on cigarettes sold in any Arkansas city or
 incorporated town whose corporate limits adjoin the corporate limits of an
 Arkansas border city shall be at the rate imposed by law on cigarettes sold
 in the adjoining state.
                      (B)   As used in subdivision (a)(4)(A) of this section,
 Arkansas border city means a city which is entitled to the border zone
 cigarette tax rate and is separated by a navigable river from the city in the
 other state that is located in a metropolitan statistical area designated by
 the United States Bureau of the Census with a population of at least one
 million (1,000,000).
                      (C)   The tax shall not exceed the tax upon cigarettes
 otherwise imposed under Arkansas law.
             (5)(A)     A wholesaler or retailer shall not sell cigarettes to a
 retailer located outside a border zone described in subdivisions (a)(1)(3)
 of this section unless the full amount of tax levied by this section and 
 26-57-208, 26-57-802, 26-57-803, 26-57-804, 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 (a)(1)(3) of this section shall not possess or offer for sale
 cigarettes unless the full amount of tax levied by this section and  26-57-
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     As Engrossed:   S4/8/21                                                    SB337
 208, 26-57-802, 26-57-803, 26-57-804, 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 (a)(4) is grounds for
 the suspension or revocation of a permit or license issued by the Director of
 Arkansas Tobacco Control.
      (b)   The exemptions and waivers allowed under  26-57-209 and 26-57-
 210 [repealed] shall apply to this section.
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                                     /s/Bledsoe
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Statutes affected: 
Old version SB337 Original - 2-22-2021 12:41 PM: 26-57-208(1), 26-57-802(a), 26-57-803(a), 26-57-804(a), 26-57-806(a)
Old version SB337 V2 - 4-8-2021 10:04 AM: 26-57-208(1), 26-57-802(a), 26-57-803(a), 26-57-804(a), 26-57-806(a)
SB 337: 26-57-208(1), 26-57-802(a), 26-57-803(a), 26-57-804(a), 26-57-806(a)