IPCPR Legislative | Arkansas

Arkansas

arkansas

Arkansas State Contact Information

Arkansas Department of Finance and Administration
Miscellaneous Tax
(501) 682-7187
(501) 682-1103 fax
misc.tax@dfa.arkansas.gov

Arkansas Tobacco Control
(501) 682-9756
(501) 682-9760 fax
http://www.atc.ar.gov/contactUs/Pages/default.aspx

Arkansas Secretary of State
Elections Division
(501) 682-5070
electionsemail@sos.arkansas.gov

Taxation in Arkansas

 

Arkansas imposes excise or privilege taxes on tobacco products other than cigarettes that are offered for sale in the state. The taxes must be reported and paid by licensed wholesalers making the first sale in the state. However, retailers who purchase tobacco products directly from a manufacturer or from an unlicensed wholesaler and consumers who purchase untaxed tobacco products from outside the state are also liable for the tax.

 

Ark. Code § 26-57-208(2-3): Levy of tax; rates of tax
Ark. Code § 26-57-803(b): Additional tax; applicability
Ark. Code § 26-57-805: Additional tax of seven percent on tobacco products other than cigarettes
Ark. Code § 26-57-807: Additional tax of thirty-six percent on tobacco products other than cigarettes
Ark. Code § 26-57-1102: Additional tax; tobacco products other than cigarettes

 

Department of Finance and Administration staff reported that Arkansas localities do not levy additional taxes on tobacco products.

The tax on tobacco products other than cigarettes is 68% of the invoice price to a wholesaler or retailer, before discounts, except that the total amount of the excise or privilege taxes on cigars may not exceed $0.50 per cigar.

 

Ark. Code § 26-57-208(2): Levy of tax; rates of tax
Ark. Code § 26-57-803(b): Additional tax; applicability
Ark. Code § 26-57-805: Additional tax of seven percent on tobacco products other than cigarettes
Ark. Code § 26-57-807: Additional tax of thirty-six percent on tobacco products other than cigarettes
Ark. Code § 26-57-1102: Additional tax; tobacco products other than cigarettes

On or before the 15th day of each month, every wholesaler must file an Other Tobacco Products Excise Tax Return (Form OTP-1) and Schedule A, along with payment for taxes due. These forms are required to be filed monthly, even if no activity occurred. Retailers who purchase tobacco products directly from a manufacturer or from an unlicensed wholesaler and consumers who purchase untaxed tobacco products from outside the state are also liable for the tax. Form OTP-1 and Schedule A can be filed online through the Arkansas Taxpayer Access Point at https://atap.arkansas.gov/_/.

Form OTP-1: Other Tobacco Products Excise Tax Return Information and Instructions
http://www.dfa.arkansas.gov/offices/exciseTax/MiscTax/Documents/OTPReturnInstructions.pdf

 

Arkansas Taxpayer Access Point
https://atap.arkansas.gov/_/

Definitions in Arkansas

 

“Smoking” means inhaling, exhaling, burning, or carrying any lighted tobacco product, including cigarettes, cigars, and pipe tobacco, and other lighted combustible plant material.

 

Ark. Code § 20-27-1803(16)

 

“Tobacco products” means all products containing tobacco for consumption, including without limitation cigarettes, cigars, little cigars, cigarillos, chewing tobacco, smokeless tobacco, snuff, smoking tobacco, including pipe tobacco, and smoking tobacco substitutes.

 

Ark. Code § 26-57-203(31)

 

“Cigar” means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco, other than any roll of tobacco that is a cigarette.

 

Ark. Code § 26-57-203(3)

 

“Retailer” means a person that purchases tobacco products from licensed wholesalers for the purpose of selling the tobacco products over the counter at retail to consumers.

 

Ark. Code § 26-57-203(26)

 

“Wholesaler” means a person other than a manufacturer or a person owned or operated by a manufacturer that:

  • Does business within the state and purchases unstamped or untaxed cigarettes or other tobacco products directly from manufacturers that distribute tobacco products in the state, and
  • Sells to properly licensed cigarette or other tobacco product vendors or retailers

 

Ark. Code § 26-57-203(35)

 

“Manufacturer” means a person that produces or offers a tobacco product for sale, including without limitation federally licensed importers and distributors that deal in tobacco products as manufacturers and that are required under this subchapter to sell only to licensed wholesalers or licensed retailers located in the state.

 

Ark. Code § 26-57-203(18)

 

“First sale” means the sale of tobacco products made by a manufacturer to licensed wholesalers and licensed vendors or a licensed retailer.

 

Ark. Code § 26-57-203(11)

 

“Invoice price” means the price that a wholesaler or retailer of tobacco products pays to a manufacturer, importer, or distributor for tobacco products that the wholesaler or retailer subsequently sells in the state.

 

Ark. Code § 26-57-203(15)

 

“Sale” or “sell” means a transfer, exchange, or barter in any manner or by any means for any consideration, including distributing or shipping product in connection with a sale.

 

Ark. Code § 26-57-203(27)

CONTACT IPCPR LEGISLATIVE
Questions? Comments? Interested in Getting Involved? Contact the IPCPR Legislative Team!
CONTACT US
Thank You. We will contact you as soon as possible.