Ark. Code Ann. § 26-57-1303 — AR Code / Title 26 / Chapter 57 / Subchapter 13 / Section 26-57-1303
Certifications - Directory - Tax stamps
Status: in_force

(a) Certification. (1) No later than April 30 each year, every tobacco product manufacturer whose cigarettes are sold in the state, whether directly or through a wholesaler, retailer, or similar intermediary or intermediaries, shall execute and deliver on a form prescribed by the Attorney General a certification to the Attorney General certifying under penalty of perjury that as of the date of the certification the tobacco product manufacturer either: (A) Is a participating manufacturer; or (B) Is in full compliance with §§ 26-57-260 and 26-57-261 , including all quarterly installment payments that may be required under § 26-57-1305(e) . (2) (A) A participating manufacturer shall include in its certification a list of its brand families. (B) The participating manufacturer shall update the list required under subdivision (a)(2)(A) of this section thirty (30) calendar days before an addition to or modification of the participating manufacturer's brand families by executing and delivering a supplemental certification to the Attorney General. (3) A nonparticipating manufacturer shall include in its certification: (A) An electronic mail address and fax number to which notices from the Attorney General may be sent and a list of all of its brand families and the number of units sold for each brand family that were sold in the state during the preceding calendar year; and (B) A list of the nonparticipating manufacturer's brand families that have been sold in the state at any time during the current calendar year: (i) Indicating by an asterisk any brand family sold in the state during the preceding calendar year but that is no longer being sold in the state as of the date of the certification; and (ii) Identifying by name and address any other manufacturer of the brand families in the preceding or current calendar year. (4) The nonparticipating manufacturer shall update the list required under subdivision (a)(3) of this section thirty (30) calendar days before an addition to or modification of the nonparticipating manufacturer's brand families by executing and delivering a supplemental certification to the Attorney General. (5) The certification for a nonparticipating manufacturer shall further certify: (A) That the nonparticipating manufacturer is registered to do business in the state or has appointed a resident agent for service of process and provided notice thereof as required by § 26-57-1304 ; (B) That the nonparticipating manufacturer: (i) Has established and continues to maintain a qualified escrow fund; and (ii) Has executed a qualified escrow agreement that has been reviewed and approved by the Attorney General and that governs the qualified escrow fund; (C) That the nonparticipating manufacturer is in full compliance with §§ 26-57-260 and 26-57-261 , this subchapter, and the rules promulgated under §§ 26-57-260 and 26-57-261 and this subchapter; (D) The name, address, and telephone number of the financial institution with which the nonparticipating manufacturer has established the qualified escrow fund required under §§ 26-57-260 and 26-57-261 and the rules promulgated under §§ 26-57-260 and 26-57-261 ; (E) The account number of the qualified escrow fund and any subaccount number for the state; (F) The amount the nonparticipating manufacturer placed in the fund for cigarettes sold in the state during the preceding calendar year, the date and amount of each deposit, and the evidence or verification the Attorney General deems necessary to confirm the requirements of this subsection; (G) The amount and date of each withdrawal or transfer of funds the nonparticipating manufacturer made from the fund or from any other qualified escrow fund into which it made escrow payments under §§ 26-57-260 and 26-57-261 and the rules promulgated under §§ 26-57-260 and 26-57-261 ; (H) (i) That the nonparticipating manufacturer consents to be sued in the courts of the state for purposes of the Attorney General's enforcing §§ 26-57-260 and 26-57-261 , this subchapter, or the rules promulgated under §§ 26-57-260 and 26-57-261 . (ii) The consent to suit under subdivision (a)(5)(H)(i) of this section shall be demonstrated by the execution and submission of a consent-to-suit form prepared by the Attorney General, with proof of authority to consent and execute the form; (I) (i) In the case of a nonparticipating manufacturer located outside of the United States, that it has provided a declaration on a form prescribed by the Attorney General from each of its importers into the United States of any of its brand families to be sold in the state that the importer accepts joint and several liability with the nonparticipating manufacturer for all escrow deposits due under § 26-57-261 and for all penalties assessed under § 26-57-261 . (ii) A declaration under subdivision (a)(5)(I)(i) of this section shall appoint for the declarant a resident agent for service of process in Arkansas under § 26-57-1304 ; and (J) That the nonparticipating manufacturer has posted the bond required by § 26-57-1308 and provided proof to the Attorney General of the posting of the bond required by § 26-57-1308 . (6) A tobacco product manufacturer may not include a brand family in its certification unless: (A) In the case of a participating manufacturer, the participating manufacturer affirms that the brand family is its cigarettes for purposes of calculating its payments under the Master Settlement Agreement for the relevant year in the volume and shares determined under the Master Settlement Agreement; and (B) In the case of a nonparticipating manufacturer, the nonparticipating manufacturer affirms that the brand family is its cigarettes for purposes of §§ 26-57-260 and 26-57-261 . (7) Subdivision (a)(6) of this section does not limit or otherwise affect the state's right to maintain that a brand family constitutes cigarettes of a different tobacco product manufacturer for purposes of calculating payments under the Master Settlement Agreement or for purposes of §§ 26-57-260 and 26-57-261 . (8) Tobacco product manufacturers shall maintain all invoices and documentation of sales and other information relied upon for the certification for a period of five (5) years unless otherwise required by law to maintain them for a greater period of time. (9) A tobacco product manufacturer shall include in its certification a statement that it holds a valid permit under 26 U.S.C. § 5713 , as it existed on January 1, 2011, and shall provide a copy of the permit to the Attorney General upon request. (10) A tobacco product manufacturer shall certify that it is in compliance with all applicable requirements imposed under federal law and federal regulations related to the manufacturer and distribution of cigarettes. (11) (A) It is unlawful for a person to submit a certification required by this section that asserts the truth of any material matter that the person knows to be false or inaccurate. (B) In addition to any other provision of law, the Attorney General may seek a civil penalty in an amount not to exceed ten thousand dollars ($10,000) against a person that violates this subsection. (C) A civil penalty collected under this section is general revenue of the state. (b) Directory of Cigarettes Approved for Stamping and Sale. (1) Not later than the last business day of May of each year, the Attorney General shall develop and make available for public inspection and shall publish on the Attorney General's website a directory listing all tobacco product manufacturers that have provided current and accurate certifications conforming to the requirements of subsection (a) of this section and all brand families that are listed in the certifications except as provided in this section. (2) The Attorney General shall not include or retain in the directory described in this subsection the name or brand families of any manufacturer that has failed to provide the required certification or whose certification the Attorney General determines is not in compliance with subsection (a) of this section unless the Attorney General has determined that the violation has been cured to the satisfaction of the Attorney General. (3) Neither a tobacco product manufacturer nor brand family shall be included or retained in the directory described in this subsection if the Attorney General concludes in the case of a nonparticipating manufacturer that: (A) An escrow payment required under §§ 26-57-260 and 26-57-261 for any period for any brand family, whether or not listed by the nonparticipating manufacturer, has not been fully paid into a qualified escrow fund governed by a qualified escrow agreement that has been approved by the Attorney General; (B) An outstanding final judgment, including interest on the judgment, for a violation of §§ 26-57-260 and 26-57-261 has not been fully satisfied for the brand family or the manufacturer; or (C) The total nationwide reported sales of cigarettes on which federal excise tax is paid exceeds the sum of its nationwide reports under 15 U.S.C. § 376 , as it existed on January 1, 2011, and any interstate reports by more than five percent (5%) of its total sales unless the nonparticipating manufacturer cures or satisfactorily explains the discrepancy within thirty (30) days after receiving notice of the discrepancy. (4) A tobacco product manufacturer or brand family shall not be maintained in the directory described in this subsection if the Attorney General concludes that: (A) The tobacco product manufacturer knowingly sold cigarettes to a stamp deputy whose appointment and commission has been revoked by the Secretary of the Department of Finance and Administration under § 26-57-236 ; (B) The tobacco product manufacturer or any of the tobacco product manufacturer's affiliates, sales entity affiliates, officers, or directors has pleaded guilty or nolo contendere to or been found guilty of a felony crime relating to the sale or taxation of cigarettes or tobacco products; or (C) (i) The tobacco product manufacturer or the tobacco product manufacturer's brand families, whether or not listed by the nonparticipating manufacturer, have been removed, excluded, or are otherwise ineligible for listing from the directory of another state based on acts or omissions that would, if done in this state, serve as a basis for removal from the directory maintained by the Attorney General under this section, unless the tobacco product manufacturer demonstrates that the removal from the other state's directory was effected without due process. (ii) A tobacco product manufacturer that is removed or excluded from the state directory, or is otherwise ineligible for listing in the state directory under this subsection may be eligible for relisting in the directory described in this subsection upon the curing of the violation. (5) The Attorney General shall update the directory described in this subsection as necessary in order to correct mistakes and to add or remove a tobacco product manufacturer or brand family to keep the directory in conformity with the requirements of this subchapter. (6) Every wholesaler shall provide and update as necessary an electronic mail address to the Attorney General for the purpose of receiving any notifications as may be required by this subchapter. (7) (A) The Attorney General may not remove the manufacturer or its brand families from the directory until at least fifteen (15) days after the manufacturer has been given notice of an intended action. (B) Notice under subdivision (b)(7)(A) of this section shall be sufficient and be deemed immediately received by a manufacturer if the notice is sent either electronically or by facsimile to an electronic mail address or facsimile number, as the case may be, provided by the manufacturer in its most recent certification filed under subsection (a) of this section. (c) Prohibition Against Stamping, Sale, or Import of Cigarettes Not in Directory. (1) It is unlawful for any person or entity to: (A) Affix a tax stamp to a package or other container of cigarettes of a tobacco product manufacturer or brand family that the person or entity knows is not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section; or (B) Sell, offer, or possess in this state, or import for personal consumption in this state, cigarettes of a tobacco product manufacturer or brand family that the person or entity knows is not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section. (2) Persons and entities are deemed to have received notice that cigarettes of a tobacco product manufacturer or a brand family are not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section at the time the Attorney General's website fails to list any such cigarettes in the directory or at the time the Attorney General removes the cigarettes from the directory. (3) A person or entity purchasing cigarettes for resale shall not be in violation of this subchapter if: (A) At the time of purchase the manufacturer and brand families of the cigarettes are included in the directory maintained by the Attorney General pursuant to subsection (b) of this section and the cigarettes are lawfully stamped and sold within twenty-one (21) days of the date the manufacturer and brand families were removed from the directory; or (B) (i) In the case of a retailer, the cigarettes are sold or delivered to retail customers within twenty-one (21) days after receipt of delivery of the cigarettes from a wholesaler so long as the cigarettes in question were lawfully purchased from the same wholesaler and the twenty-one-day period has not expired. (ii) Possession of cigarettes after the twenty-one-day period in subdivision (c)(3)(B)(i) of this section has expired is a violation of subdivision (c)(1) of this section. (4) No brand families may be purchased by or delivered to a wholesaler once the manufacturer and brand families are removed from the directory. (5) Any manufacturer, wholesaler, or retailer selling cigarettes for resale of a manufacturer or brand family that has been removed from the directory maintained by the Attorney General pursuant to subsection (b) of this section shall notify the purchaser of the cigarettes of that fact at the time of delivery of the cigarettes. (6) (A) Unless otherwise provided by contract or purchase agreement, a purchaser shall be entitled to a refund of the purchase price from the manufacturer, wholesaler, or retailer from whom the cigarettes were purchased of any cigarettes that are the product of a manufacturer or a brand family that has been removed from the directory maintained by the Attorney General pursuant to subsection (b) of this section. (B) The Department of Finance and Administration may by rule provide for a refund of the price of tax stamps that have been lawfully affixed to cigarettes that may not be sold under this subsection. Amended by Act 2021, No. 929,§ 4, eff. 7/28/2021. Amended by Act 2021, No. 929,§ 3, eff. 7/28/2021. Amended by Act 2021, No. 929,§ 2, eff. 7/28/2021. Amended by Act 2021, No. 929,§ 1, eff. 7/28/2021. Amended by Act 2019, No. 910,§ 4224, eff. 7/1/2019. Acts 2003, No. 1073, § 3; 2005, No. 384, § 2; 2009, No. 655, § 98; 2009, No. 785, § 32; 2011, No. 836, § 14.

(a) Certification. (1) No later than April 30 each year, every tobacco product manufacturer whose cigarettes are sold in the state, whether directly or through a wholesaler, retailer, or similar intermediary or intermediaries, shall execute and deliver on a form prescribed by the Attorney General a certification to the Attorney General certifying under penalty of perjury that as of the date of the certification the tobacco product manufacturer either: (A) Is a participating manufacturer; or (B) Is in full compliance with §§ 26-57-260 and 26-57-261 , including all quarterly installment payments that may be required under § 26-57-1305(e) . (2) (A) A participating manufacturer shall include in its certification a list of its brand families. (B) The participating manufacturer shall update the list required under subdivision (a)(2)(A) of this section thirty (30) calendar days before an addition to or modification of the participating manufacturer's brand families by executing and delivering a supplemental certification to the Attorney General. (3) A nonparticipating manufacturer shall include in its certification: (A) An electronic mail address and fax number to which notices from the Attorney General may be sent and a list of all of its brand families and the number of units sold for each brand family that were sold in the state during the preceding calendar year; and (B) A list of the nonparticipating manufacturer's brand families that have been sold in the state at any time during the current calendar year: (i) Indicating by an asterisk any brand family sold in the state during the preceding calendar year but that is no longer being sold in the state as of the date of the certification; and (ii) Identifying by name and address any other manufacturer of the brand families in the preceding or current calendar year. (4) The nonparticipating manufacturer shall update the list required under subdivision (a)(3) of this section thirty (30) calendar days before an addition to or modification of the nonparticipating manufacturer's brand families by executing and delivering a supplemental certification to the Attorney General. (5) The certification for a nonparticipating manufacturer shall further certify: (A) That the nonparticipating manufacturer is registered to do business in the state or has appointed a resident agent for service of process and provided notice thereof as required by § 26-57-1304 ; (B) That the nonparticipating manufacturer: (i) Has established and continues to maintain a qualified escrow fund; and (ii) Has executed a qualified escrow agreement that has been reviewed and approved by the Attorney General and that governs the qualified escrow fund; (C) That the nonparticipating manufacturer is in full compliance with §§ 26-57-260 and 26-57-261 , this subchapter, and the rules promulgated under §§ 26-57-260 and 26-57-261 and this subchapter; (D) The name, address, and telephone number of the financial institution with which the nonparticipating manufacturer has established the qualified escrow fund required under §§ 26-57-260 and 26-57-261 and the rules promulgated under §§ 26-57-260 and 26-57-261 ; (E) The account number of the qualified escrow fund and any subaccount number for the state; (F) The amount the nonparticipating manufacturer placed in the fund for cigarettes sold in the state during the preceding calendar year, the date and amount of each deposit, and the evidence or verification the Attorney General deems necessary to confirm the requirements of this subsection; (G) The amount and date of each withdrawal or transfer of funds the nonparticipating manufacturer made from the fund or from any other qualified escrow fund into which it made escrow payments under §§ 26-57-260 and 26-57-261 and the rules promulgated under §§ 26-57-260 and 26-57-261 ; (H) (i) That the nonparticipating manufacturer consents to be sued in the courts of the state for purposes of the Attorney General's enforcing §§ 26-57-260 and 26-57-261 , this subchapter, or the rules promulgated under §§ 26-57-260 and 26-57-261 . (ii) The consent to suit under subdivision (a)(5)(H)(i) of this section shall be demonstrated by the execution and submission of a consent-to-suit form prepared by the Attorney General, with proof of authority to consent and execute the form; (I) (i) In the case of a nonparticipating manufacturer located outside of the United States, that it has provided a declaration on a form prescribed by the Attorney General from each of its importers into the United States of any of its brand families to be sold in the state that the importer accepts joint and several liability with the nonparticipating manufacturer for all escrow deposits due under § 26-57-261 and for all penalties assessed under § 26-57-261 . (ii) A declaration under subdivision (a)(5)(I)(i) of this section shall appoint for the declarant a resident agent for service of process in Arkansas under § 26-57-1304 ; and (J) That the nonparticipating manufacturer has posted the bond required by § 26-57-1308 and provided proof to the Attorney General of the posting of the bond required by § 26-57-1308 . (6) A tobacco product manufacturer may not include a brand family in its certification unless: (A) In the case of a participating manufacturer, the participating manufacturer affirms that the brand family is its cigarettes for purposes of calculating its payments under the Master Settlement Agreement for the relevant year in the volume and shares determined under the Master Settlement Agreement; and (B) In the case of a nonparticipating manufacturer, the nonparticipating manufacturer affirms that the brand family is its cigarettes for purposes of §§ 26-57-260 and 26-57-261 . (7) Subdivision (a)(6) of this section does not limit or otherwise affect the state's right to maintain that a brand family constitutes cigarettes of a different tobacco product manufacturer for purposes of calculating payments under the Master Settlement Agreement or for purposes of §§ 26-57-260 and 26-57-261 . (8) Tobacco product manufacturers shall maintain all invoices and documentation of sales and other information relied upon for the certification for a period of five (5) years unless otherwise required by law to maintain them for a greater period of time. (9) A tobacco product manufacturer shall include in its certification a statement that it holds a valid permit under 26 U.S.C. § 5713 , as it existed on January 1, 2011, and shall provide a copy of the permit to the Attorney General upon request. (10) A tobacco product manufacturer shall certify that it is in compliance with all applicable requirements imposed under federal law and federal regulations related to the manufacturer and distribution of cigarettes. (11) (A) It is unlawful for a person to submit a certification required by this section that asserts the truth of any material matter that the person knows to be false or inaccurate. (B) In addition to any other provision of law, the Attorney General may seek a civil penalty in an amount not to exceed ten thousand dollars ($10,000) against a person that violates this subsection. (C) A civil penalty collected under this section is general revenue of the state.

(1) No later than April 30 each year, every tobacco product manufacturer whose cigarettes are sold in the state, whether directly or through a wholesaler, retailer, or similar intermediary or intermediaries, shall execute and deliver on a form prescribed by the Attorney General a certification to the Attorney General certifying under penalty of perjury that as of the date of the certification the tobacco product manufacturer either: (A) Is a participating manufacturer; or (B) Is in full compliance with §§ 26-57-260 and 26-57-261 , including all quarterly installment payments that may be required under § 26-57-1305(e) .

(A) Is a participating manufacturer; or

(B) Is in full compliance with §§ 26-57-260 and 26-57-261 , including all quarterly installment payments that may be required under § 26-57-1305(e) .

(2) (A) A participating manufacturer shall include in its certification a list of its brand families. (B) The participating manufacturer shall update the list required under subdivision (a)(2)(A) of this section thirty (30) calendar days before an addition to or modification of the participating manufacturer's brand families by executing and delivering a supplemental certification to the Attorney General.

(A) A participating manufacturer shall include in its certification a list of its brand families.

(B) The participating manufacturer shall update the list required under subdivision (a)(2)(A) of this section thirty (30) calendar days before an addition to or modification of the participating manufacturer's brand families by executing and delivering a supplemental certification to the Attorney General.

(3) A nonparticipating manufacturer shall include in its certification: (A) An electronic mail address and fax number to which notices from the Attorney General may be sent and a list of all of its brand families and the number of units sold for each brand family that were sold in the state during the preceding calendar year; and (B) A list of the nonparticipating manufacturer's brand families that have been sold in the state at any time during the current calendar year: (i) Indicating by an asterisk any brand family sold in the state during the preceding calendar year but that is no longer being sold in the state as of the date of the certification; and (ii) Identifying by name and address any other manufacturer of the brand families in the preceding or current calendar year.

(A) An electronic mail address and fax number to which notices from the Attorney General may be sent and a list of all of its brand families and the number of units sold for each brand family that were sold in the state during the preceding calendar year; and

(B) A list of the nonparticipating manufacturer's brand families that have been sold in the state at any time during the current calendar year: (i) Indicating by an asterisk any brand family sold in the state during the preceding calendar year but that is no longer being sold in the state as of the date of the certification; and (ii) Identifying by name and address any other manufacturer of the brand families in the preceding or current calendar year.

(i) Indicating by an asterisk any brand family sold in the state during the preceding calendar year but that is no longer being sold in the state as of the date of the certification; and

(ii) Identifying by name and address any other manufacturer of the brand families in the preceding or current calendar year.

(4) The nonparticipating manufacturer shall update the list required under subdivision (a)(3) of this section thirty (30) calendar days before an addition to or modification of the nonparticipating manufacturer's brand families by executing and delivering a supplemental certification to the Attorney General.

(5) The certification for a nonparticipating manufacturer shall further certify: (A) That the nonparticipating manufacturer is registered to do business in the state or has appointed a resident agent for service of process and provided notice thereof as required by § 26-57-1304 ; (B) That the nonparticipating manufacturer: (i) Has established and continues to maintain a qualified escrow fund; and (ii) Has executed a qualified escrow agreement that has been reviewed and approved by the Attorney General and that governs the qualified escrow fund; (C) That the nonparticipating manufacturer is in full compliance with §§ 26-57-260 and 26-57-261 , this subchapter, and the rules promulgated under §§ 26-57-260 and 26-57-261 and this subchapter; (D) The name, address, and telephone number of the financial institution with which the nonparticipating manufacturer has established the qualified escrow fund required under §§ 26-57-260 and 26-57-261 and the rules promulgated under §§ 26-57-260 and 26-57-261 ; (E) The account number of the qualified escrow fund and any subaccount number for the state; (F) The amount the nonparticipating manufacturer placed in the fund for cigarettes sold in the state during the preceding calendar year, the date and amount of each deposit, and the evidence or verification the Attorney General deems necessary to confirm the requirements of this subsection; (G) The amount and date of each withdrawal or transfer of funds the nonparticipating manufacturer made from the fund or from any other qualified escrow fund into which it made escrow payments under §§ 26-57-260 and 26-57-261 and the rules promulgated under §§ 26-57-260 and 26-57-261 ; (H) (i) That the nonparticipating manufacturer consents to be sued in the courts of the state for purposes of the Attorney General's enforcing §§ 26-57-260 and 26-57-261 , this subchapter, or the rules promulgated under §§ 26-57-260 and 26-57-261 . (ii) The consent to suit under subdivision (a)(5)(H)(i) of this section shall be demonstrated by the execution and submission of a consent-to-suit form prepared by the Attorney General, with proof of authority to consent and execute the form; (I) (i) In the case of a nonparticipating manufacturer located outside of the United States, that it has provided a declaration on a form prescribed by the Attorney General from each of its importers into the United States of any of its brand families to be sold in the state that the importer accepts joint and several liability with the nonparticipating manufacturer for all escrow deposits due under § 26-57-261 and for all penalties assessed under § 26-57-261 . (ii) A declaration under subdivision (a)(5)(I)(i) of this section shall appoint for the declarant a resident agent for service of process in Arkansas under § 26-57-1304 ; and (J) That the nonparticipating manufacturer has posted the bond required by § 26-57-1308 and provided proof to the Attorney General of the posting of the bond required by § 26-57-1308 .

(A) That the nonparticipating manufacturer is registered to do business in the state or has appointed a resident agent for service of process and provided notice thereof as required by § 26-57-1304 ;

(B) That the nonparticipating manufacturer: (i) Has established and continues to maintain a qualified escrow fund; and (ii) Has executed a qualified escrow agreement that has been reviewed and approved by the Attorney General and that governs the qualified escrow fund;

(i) Has established and continues to maintain a qualified escrow fund; and

(ii) Has executed a qualified escrow agreement that has been reviewed and approved by the Attorney General and that governs the qualified escrow fund;

(C) That the nonparticipating manufacturer is in full compliance with §§ 26-57-260 and 26-57-261 , this subchapter, and the rules promulgated under §§ 26-57-260 and 26-57-261 and this subchapter;

(D) The name, address, and telephone number of the financial institution with which the nonparticipating manufacturer has established the qualified escrow fund required under §§ 26-57-260 and 26-57-261 and the rules promulgated under §§ 26-57-260 and 26-57-261 ;

(E) The account number of the qualified escrow fund and any subaccount number for the state;

(F) The amount the nonparticipating manufacturer placed in the fund for cigarettes sold in the state during the preceding calendar year, the date and amount of each deposit, and the evidence or verification the Attorney General deems necessary to confirm the requirements of this subsection;

(G) The amount and date of each withdrawal or transfer of funds the nonparticipating manufacturer made from the fund or from any other qualified escrow fund into which it made escrow payments under §§ 26-57-260 and 26-57-261 and the rules promulgated under §§ 26-57-260 and 26-57-261 ;

(H) (i) That the nonparticipating manufacturer consents to be sued in the courts of the state for purposes of the Attorney General's enforcing §§ 26-57-260 and 26-57-261 , this subchapter, or the rules promulgated under §§ 26-57-260 and 26-57-261 . (ii) The consent to suit under subdivision (a)(5)(H)(i) of this section shall be demonstrated by the execution and submission of a consent-to-suit form prepared by the Attorney General, with proof of authority to consent and execute the form;

(i) That the nonparticipating manufacturer consents to be sued in the courts of the state for purposes of the Attorney General's enforcing §§ 26-57-260 and 26-57-261 , this subchapter, or the rules promulgated under §§ 26-57-260 and 26-57-261 .

(ii) The consent to suit under subdivision (a)(5)(H)(i) of this section shall be demonstrated by the execution and submission of a consent-to-suit form prepared by the Attorney General, with proof of authority to consent and execute the form;

(I) (i) In the case of a nonparticipating manufacturer located outside of the United States, that it has provided a declaration on a form prescribed by the Attorney General from each of its importers into the United States of any of its brand families to be sold in the state that the importer accepts joint and several liability with the nonparticipating manufacturer for all escrow deposits due under § 26-57-261 and for all penalties assessed under § 26-57-261 . (ii) A declaration under subdivision (a)(5)(I)(i) of this section shall appoint for the declarant a resident agent for service of process in Arkansas under § 26-57-1304 ; and

(i) In the case of a nonparticipating manufacturer located outside of the United States, that it has provided a declaration on a form prescribed by the Attorney General from each of its importers into the United States of any of its brand families to be sold in the state that the importer accepts joint and several liability with the nonparticipating manufacturer for all escrow deposits due under § 26-57-261 and for all penalties assessed under § 26-57-261 .

(ii) A declaration under subdivision (a)(5)(I)(i) of this section shall appoint for the declarant a resident agent for service of process in Arkansas under § 26-57-1304 ; and

(J) That the nonparticipating manufacturer has posted the bond required by § 26-57-1308 and provided proof to the Attorney General of the posting of the bond required by § 26-57-1308 .

(6) A tobacco product manufacturer may not include a brand family in its certification unless: (A) In the case of a participating manufacturer, the participating manufacturer affirms that the brand family is its cigarettes for purposes of calculating its payments under the Master Settlement Agreement for the relevant year in the volume and shares determined under the Master Settlement Agreement; and (B) In the case of a nonparticipating manufacturer, the nonparticipating manufacturer affirms that the brand family is its cigarettes for purposes of §§ 26-57-260 and 26-57-261 .

(A) In the case of a participating manufacturer, the participating manufacturer affirms that the brand family is its cigarettes for purposes of calculating its payments under the Master Settlement Agreement for the relevant year in the volume and shares determined under the Master Settlement Agreement; and

(B) In the case of a nonparticipating manufacturer, the nonparticipating manufacturer affirms that the brand family is its cigarettes for purposes of §§ 26-57-260 and 26-57-261 .

(7) Subdivision (a)(6) of this section does not limit or otherwise affect the state's right to maintain that a brand family constitutes cigarettes of a different tobacco product manufacturer for purposes of calculating payments under the Master Settlement Agreement or for purposes of §§ 26-57-260 and 26-57-261 .

(8) Tobacco product manufacturers shall maintain all invoices and documentation of sales and other information relied upon for the certification for a period of five (5) years unless otherwise required by law to maintain them for a greater period of time.

(9) A tobacco product manufacturer shall include in its certification a statement that it holds a valid permit under 26 U.S.C. § 5713 , as it existed on January 1, 2011, and shall provide a copy of the permit to the Attorney General upon request.

(10) A tobacco product manufacturer shall certify that it is in compliance with all applicable requirements imposed under federal law and federal regulations related to the manufacturer and distribution of cigarettes.

(11) (A) It is unlawful for a person to submit a certification required by this section that asserts the truth of any material matter that the person knows to be false or inaccurate. (B) In addition to any other provision of law, the Attorney General may seek a civil penalty in an amount not to exceed ten thousand dollars ($10,000) against a person that violates this subsection. (C) A civil penalty collected under this section is general revenue of the state.

(A) It is unlawful for a person to submit a certification required by this section that asserts the truth of any material matter that the person knows to be false or inaccurate.

(B) In addition to any other provision of law, the Attorney General may seek a civil penalty in an amount not to exceed ten thousand dollars ($10,000) against a person that violates this subsection.

(C) A civil penalty collected under this section is general revenue of the state.

(b) Directory of Cigarettes Approved for Stamping and Sale. (1) Not later than the last business day of May of each year, the Attorney General shall develop and make available for public inspection and shall publish on the Attorney General's website a directory listing all tobacco product manufacturers that have provided current and accurate certifications conforming to the requirements of subsection (a) of this section and all brand families that are listed in the certifications except as provided in this section. (2) The Attorney General shall not include or retain in the directory described in this subsection the name or brand families of any manufacturer that has failed to provide the required certification or whose certification the Attorney General determines is not in compliance with subsection (a) of this section unless the Attorney General has determined that the violation has been cured to the satisfaction of the Attorney General. (3) Neither a tobacco product manufacturer nor brand family shall be included or retained in the directory described in this subsection if the Attorney General concludes in the case of a nonparticipating manufacturer that: (A) An escrow payment required under §§ 26-57-260 and 26-57-261 for any period for any brand family, whether or not listed by the nonparticipating manufacturer, has not been fully paid into a qualified escrow fund governed by a qualified escrow agreement that has been approved by the Attorney General; (B) An outstanding final judgment, including interest on the judgment, for a violation of §§ 26-57-260 and 26-57-261 has not been fully satisfied for the brand family or the manufacturer; or (C) The total nationwide reported sales of cigarettes on which federal excise tax is paid exceeds the sum of its nationwide reports under 15 U.S.C. § 376 , as it existed on January 1, 2011, and any interstate reports by more than five percent (5%) of its total sales unless the nonparticipating manufacturer cures or satisfactorily explains the discrepancy within thirty (30) days after receiving notice of the discrepancy. (4) A tobacco product manufacturer or brand family shall not be maintained in the directory described in this subsection if the Attorney General concludes that: (A) The tobacco product manufacturer knowingly sold cigarettes to a stamp deputy whose appointment and commission has been revoked by the Secretary of the Department of Finance and Administration under § 26-57-236 ; (B) The tobacco product manufacturer or any of the tobacco product manufacturer's affiliates, sales entity affiliates, officers, or directors has pleaded guilty or nolo contendere to or been found guilty of a felony crime relating to the sale or taxation of cigarettes or tobacco products; or (C) (i) The tobacco product manufacturer or the tobacco product manufacturer's brand families, whether or not listed by the nonparticipating manufacturer, have been removed, excluded, or are otherwise ineligible for listing from the directory of another state based on acts or omissions that would, if done in this state, serve as a basis for removal from the directory maintained by the Attorney General under this section, unless the tobacco product manufacturer demonstrates that the removal from the other state's directory was effected without due process. (ii) A tobacco product manufacturer that is removed or excluded from the state directory, or is otherwise ineligible for listing in the state directory under this subsection may be eligible for relisting in the directory described in this subsection upon the curing of the violation. (5) The Attorney General shall update the directory described in this subsection as necessary in order to correct mistakes and to add or remove a tobacco product manufacturer or brand family to keep the directory in conformity with the requirements of this subchapter. (6) Every wholesaler shall provide and update as necessary an electronic mail address to the Attorney General for the purpose of receiving any notifications as may be required by this subchapter. (7) (A) The Attorney General may not remove the manufacturer or its brand families from the directory until at least fifteen (15) days after the manufacturer has been given notice of an intended action. (B) Notice under subdivision (b)(7)(A) of this section shall be sufficient and be deemed immediately received by a manufacturer if the notice is sent either electronically or by facsimile to an electronic mail address or facsimile number, as the case may be, provided by the manufacturer in its most recent certification filed under subsection (a) of this section.

(1) Not later than the last business day of May of each year, the Attorney General shall develop and make available for public inspection and shall publish on the Attorney General's website a directory listing all tobacco product manufacturers that have provided current and accurate certifications conforming to the requirements of subsection (a) of this section and all brand families that are listed in the certifications except as provided in this section.

(2) The Attorney General shall not include or retain in the directory described in this subsection the name or brand families of any manufacturer that has failed to provide the required certification or whose certification the Attorney General determines is not in compliance with subsection (a) of this section unless the Attorney General has determined that the violation has been cured to the satisfaction of the Attorney General.

(3) Neither a tobacco product manufacturer nor brand family shall be included or retained in the directory described in this subsection if the Attorney General concludes in the case of a nonparticipating manufacturer that: (A) An escrow payment required under §§ 26-57-260 and 26-57-261 for any period for any brand family, whether or not listed by the nonparticipating manufacturer, has not been fully paid into a qualified escrow fund governed by a qualified escrow agreement that has been approved by the Attorney General; (B) An outstanding final judgment, including interest on the judgment, for a violation of §§ 26-57-260 and 26-57-261 has not been fully satisfied for the brand family or the manufacturer; or (C) The total nationwide reported sales of cigarettes on which federal excise tax is paid exceeds the sum of its nationwide reports under 15 U.S.C. § 376 , as it existed on January 1, 2011, and any interstate reports by more than five percent (5%) of its total sales unless the nonparticipating manufacturer cures or satisfactorily explains the discrepancy within thirty (30) days after receiving notice of the discrepancy.

(A) An escrow payment required under §§ 26-57-260 and 26-57-261 for any period for any brand family, whether or not listed by the nonparticipating manufacturer, has not been fully paid into a qualified escrow fund governed by a qualified escrow agreement that has been approved by the Attorney General;

(B) An outstanding final judgment, including interest on the judgment, for a violation of §§ 26-57-260 and 26-57-261 has not been fully satisfied for the brand family or the manufacturer; or

(C) The total nationwide reported sales of cigarettes on which federal excise tax is paid exceeds the sum of its nationwide reports under 15 U.S.C. § 376 , as it existed on January 1, 2011, and any interstate reports by more than five percent (5%) of its total sales unless the nonparticipating manufacturer cures or satisfactorily explains the discrepancy within thirty (30) days after receiving notice of the discrepancy.

(4) A tobacco product manufacturer or brand family shall not be maintained in the directory described in this subsection if the Attorney General concludes that: (A) The tobacco product manufacturer knowingly sold cigarettes to a stamp deputy whose appointment and commission has been revoked by the Secretary of the Department of Finance and Administration under § 26-57-236 ; (B) The tobacco product manufacturer or any of the tobacco product manufacturer's affiliates, sales entity affiliates, officers, or directors has pleaded guilty or nolo contendere to or been found guilty of a felony crime relating to the sale or taxation of cigarettes or tobacco products; or (C) (i) The tobacco product manufacturer or the tobacco product manufacturer's brand families, whether or not listed by the nonparticipating manufacturer, have been removed, excluded, or are otherwise ineligible for listing from the directory of another state based on acts or omissions that would, if done in this state, serve as a basis for removal from the directory maintained by the Attorney General under this section, unless the tobacco product manufacturer demonstrates that the removal from the other state's directory was effected without due process. (ii) A tobacco product manufacturer that is removed or excluded from the state directory, or is otherwise ineligible for listing in the state directory under this subsection may be eligible for relisting in the directory described in this subsection upon the curing of the violation.

(A) The tobacco product manufacturer knowingly sold cigarettes to a stamp deputy whose appointment and commission has been revoked by the Secretary of the Department of Finance and Administration under § 26-57-236 ;

(B) The tobacco product manufacturer or any of the tobacco product manufacturer's affiliates, sales entity affiliates, officers, or directors has pleaded guilty or nolo contendere to or been found guilty of a felony crime relating to the sale or taxation of cigarettes or tobacco products; or

(C) (i) The tobacco product manufacturer or the tobacco product manufacturer's brand families, whether or not listed by the nonparticipating manufacturer, have been removed, excluded, or are otherwise ineligible for listing from the directory of another state based on acts or omissions that would, if done in this state, serve as a basis for removal from the directory maintained by the Attorney General under this section, unless the tobacco product manufacturer demonstrates that the removal from the other state's directory was effected without due process. (ii) A tobacco product manufacturer that is removed or excluded from the state directory, or is otherwise ineligible for listing in the state directory under this subsection may be eligible for relisting in the directory described in this subsection upon the curing of the violation.

(i) The tobacco product manufacturer or the tobacco product manufacturer's brand families, whether or not listed by the nonparticipating manufacturer, have been removed, excluded, or are otherwise ineligible for listing from the directory of another state based on acts or omissions that would, if done in this state, serve as a basis for removal from the directory maintained by the Attorney General under this section, unless the tobacco product manufacturer demonstrates that the removal from the other state's directory was effected without due process.

(ii) A tobacco product manufacturer that is removed or excluded from the state directory, or is otherwise ineligible for listing in the state directory under this subsection may be eligible for relisting in the directory described in this subsection upon the curing of the violation.

(5) The Attorney General shall update the directory described in this subsection as necessary in order to correct mistakes and to add or remove a tobacco product manufacturer or brand family to keep the directory in conformity with the requirements of this subchapter.

(6) Every wholesaler shall provide and update as necessary an electronic mail address to the Attorney General for the purpose of receiving any notifications as may be required by this subchapter.

(7) (A) The Attorney General may not remove the manufacturer or its brand families from the directory until at least fifteen (15) days after the manufacturer has been given notice of an intended action. (B) Notice under subdivision (b)(7)(A) of this section shall be sufficient and be deemed immediately received by a manufacturer if the notice is sent either electronically or by facsimile to an electronic mail address or facsimile number, as the case may be, provided by the manufacturer in its most recent certification filed under subsection (a) of this section.

(A) The Attorney General may not remove the manufacturer or its brand families from the directory until at least fifteen (15) days after the manufacturer has been given notice of an intended action.

(B) Notice under subdivision (b)(7)(A) of this section shall be sufficient and be deemed immediately received by a manufacturer if the notice is sent either electronically or by facsimile to an electronic mail address or facsimile number, as the case may be, provided by the manufacturer in its most recent certification filed under subsection (a) of this section.

(c) Prohibition Against Stamping, Sale, or Import of Cigarettes Not in Directory. (1) It is unlawful for any person or entity to: (A) Affix a tax stamp to a package or other container of cigarettes of a tobacco product manufacturer or brand family that the person or entity knows is not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section; or (B) Sell, offer, or possess in this state, or import for personal consumption in this state, cigarettes of a tobacco product manufacturer or brand family that the person or entity knows is not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section. (2) Persons and entities are deemed to have received notice that cigarettes of a tobacco product manufacturer or a brand family are not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section at the time the Attorney General's website fails to list any such cigarettes in the directory or at the time the Attorney General removes the cigarettes from the directory. (3) A person or entity purchasing cigarettes for resale shall not be in violation of this subchapter if: (A) At the time of purchase the manufacturer and brand families of the cigarettes are included in the directory maintained by the Attorney General pursuant to subsection (b) of this section and the cigarettes are lawfully stamped and sold within twenty-one (21) days of the date the manufacturer and brand families were removed from the directory; or (B) (i) In the case of a retailer, the cigarettes are sold or delivered to retail customers within twenty-one (21) days after receipt of delivery of the cigarettes from a wholesaler so long as the cigarettes in question were lawfully purchased from the same wholesaler and the twenty-one-day period has not expired. (ii) Possession of cigarettes after the twenty-one-day period in subdivision (c)(3)(B)(i) of this section has expired is a violation of subdivision (c)(1) of this section. (4) No brand families may be purchased by or delivered to a wholesaler once the manufacturer and brand families are removed from the directory. (5) Any manufacturer, wholesaler, or retailer selling cigarettes for resale of a manufacturer or brand family that has been removed from the directory maintained by the Attorney General pursuant to subsection (b) of this section shall notify the purchaser of the cigarettes of that fact at the time of delivery of the cigarettes. (6) (A) Unless otherwise provided by contract or purchase agreement, a purchaser shall be entitled to a refund of the purchase price from the manufacturer, wholesaler, or retailer from whom the cigarettes were purchased of any cigarettes that are the product of a manufacturer or a brand family that has been removed from the directory maintained by the Attorney General pursuant to subsection (b) of this section. (B) The Department of Finance and Administration may by rule provide for a refund of the price of tax stamps that have been lawfully affixed to cigarettes that may not be sold under this subsection.

(1) It is unlawful for any person or entity to: (A) Affix a tax stamp to a package or other container of cigarettes of a tobacco product manufacturer or brand family that the person or entity knows is not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section; or (B) Sell, offer, or possess in this state, or import for personal consumption in this state, cigarettes of a tobacco product manufacturer or brand family that the person or entity knows is not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section.

(A) Affix a tax stamp to a package or other container of cigarettes of a tobacco product manufacturer or brand family that the person or entity knows is not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section; or

(B) Sell, offer, or possess in this state, or import for personal consumption in this state, cigarettes of a tobacco product manufacturer or brand family that the person or entity knows is not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section.

(2) Persons and entities are deemed to have received notice that cigarettes of a tobacco product manufacturer or a brand family are not included in the directory maintained by the Attorney General pursuant to subsection (b) of this section at the time the Attorney General's website fails to list any such cigarettes in the directory or at the time the Attorney General removes the cigarettes from the directory.

(3) A person or entity purchasing cigarettes for resale shall not be in violation of this subchapter if: (A) At the time of purchase the manufacturer and brand families of the cigarettes are included in the directory maintained by the Attorney General pursuant to subsection (b) of this section and the cigarettes are lawfully stamped and sold within twenty-one (21) days of the date the manufacturer and brand families were removed from the directory; or (B) (i) In the case of a retailer, the cigarettes are sold or delivered to retail customers within twenty-one (21) days after receipt of delivery of the cigarettes from a wholesaler so long as the cigarettes in question were lawfully purchased from the same wholesaler and the twenty-one-day period has not expired. (ii) Possession of cigarettes after the twenty-one-day period in subdivision (c)(3)(B)(i) of this section has expired is a violation of subdivision (c)(1) of this section.

(A) At the time of purchase the manufacturer and brand families of the cigarettes are included in the directory maintained by the Attorney General pursuant to subsection (b) of this section and the cigarettes are lawfully stamped and sold within twenty-one (21) days of the date the manufacturer and brand families were removed from the directory; or

(B) (i) In the case of a retailer, the cigarettes are sold or delivered to retail customers within twenty-one (21) days after receipt of delivery of the cigarettes from a wholesaler so long as the cigarettes in question were lawfully purchased from the same wholesaler and the twenty-one-day period has not expired. (ii) Possession of cigarettes after the twenty-one-day period in subdivision (c)(3)(B)(i) of this section has expired is a violation of subdivision (c)(1) of this section.

(i) In the case of a retailer, the cigarettes are sold or delivered to retail customers within twenty-one (21) days after receipt of delivery of the cigarettes from a wholesaler so long as the cigarettes in question were lawfully purchased from the same wholesaler and the twenty-one-day period has not expired.

(ii) Possession of cigarettes after the twenty-one-day period in subdivision (c)(3)(B)(i) of this section has expired is a violation of subdivision (c)(1) of this section.

(4) No brand families may be purchased by or delivered to a wholesaler once the manufacturer and brand families are removed from the directory.

(5) Any manufacturer, wholesaler, or retailer selling cigarettes for resale of a manufacturer or brand family that has been removed from the directory maintained by the Attorney General pursuant to subsection (b) of this section shall notify the purchaser of the cigarettes of that fact at the time of delivery of the cigarettes.

(6) (A) Unless otherwise provided by contract or purchase agreement, a purchaser shall be entitled to a refund of the purchase price from the manufacturer, wholesaler, or retailer from whom the cigarettes were purchased of any cigarettes that are the product of a manufacturer or a brand family that has been removed from the directory maintained by the Attorney General pursuant to subsection (b) of this section. (B) The Department of Finance and Administration may by rule provide for a refund of the price of tax stamps that have been lawfully affixed to cigarettes that may not be sold under this subsection.

(A) Unless otherwise provided by contract or purchase agreement, a purchaser shall be entitled to a refund of the purchase price from the manufacturer, wholesaler, or retailer from whom the cigarettes were purchased of any cigarettes that are the product of a manufacturer or a brand family that has been removed from the directory maintained by the Attorney General pursuant to subsection (b) of this section.

(B) The Department of Finance and Administration may by rule provide for a refund of the price of tax stamps that have been lawfully affixed to cigarettes that may not be sold under this subsection.

Amended by Act 2021, No. 929,§ 4, eff. 7/28/2021.

Amended by Act 2021, No. 929,§ 3, eff. 7/28/2021.

Amended by Act 2021, No. 929,§ 2, eff. 7/28/2021.

Amended by Act 2021, No. 929,§ 1, eff. 7/28/2021.

Amended by Act 2019, No. 910,§ 4224, eff. 7/1/2019.

Acts 2003, No. 1073, § 3; 2005, No. 384, § 2; 2009, No. 655, § 98; 2009, No. 785, § 32; 2011, No. 836, § 14.
Ark. Code Ann. § 26-57-807 — AR Code / Title 26 / Chapter 57 / Subchapter 8 / Section 26-57-807
Additional tax of thirty-six percent on tobacco products other than cigarettes
Status: in_force

(a) (1) In addition to other taxes imposed by law, there is levied an additional excise or privilege tax on the first sale of tobacco products other than cigarettes at the rate of thirty-six percent (36%) of the invoice price to a wholesaler or retailer, before discounts. (2) However, the excise or privilege tax levied under subdivision (a)(1) of this section is subject to the limitation stated in § 26-57-208(2)(B) . (3) As used in this subsection, "invoice price" means the same as defined in § 26-57-203 . (b) (1) The tax levied by this section shall be reported and paid by wholesalers that shall be licensed under § 26-57-214 . (2) However, unless a retailer has confirmed and establishes by clear and convincing evidence that the tax levied under this section has been paid previously on the tobacco products, the retailer is liable for reporting and paying this tax when the retailer obtains tobacco products from a person other than a wholesaler licensed under § 26-57-214 . (c) The exemptions and waivers allowed under §§ 26-57-209 and 26-57-210 [repealed] shall apply to this section. (d) 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. (e) 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 in accordance with the Revenue Stabilization Law, § 19-5-201 et seq. (f) As provided in § 26-57-244 , the Secretary 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. (g) (1) A taxpayer that fails to report and remit the tobacco tax due on tobacco products obtained from a person other than a wholesaler that is licensed under § 26-57-214 is subject to the following penalties: (A) For the first offense, five percent (5%) of the total tobacco tax due; (B) For the second offense, twenty percent (20%) of the total tobacco tax due; and (C) For the third and any subsequent offenses, twenty-five percent (25%) of the total tobacco tax due. (2) In addition, a taxpayer's cigarette or tobacco permit shall be revoked for a period of ninety (90) days for the third and subsequent offenses. Amended by Act 2019, No. 910,§ 4192, eff. 7/1/2019. Amended by Act 2015, No. 1119,§ 13, eff. 4/6/2015. Amended by Act 2015, No. 1119,§ 12, eff. 4/6/2015. Amended by Act 2013, No. 510,§ 4, eff. the first day of the second calendar month following the effective date of the act. Acts 2009, No. 180, § 5.

(a) (1) In addition to other taxes imposed by law, there is levied an additional excise or privilege tax on the first sale of tobacco products other than cigarettes at the rate of thirty-six percent (36%) of the invoice price to a wholesaler or retailer, before discounts. (2) However, the excise or privilege tax levied under subdivision (a)(1) of this section is subject to the limitation stated in § 26-57-208(2)(B) . (3) As used in this subsection, "invoice price" means the same as defined in § 26-57-203 .

(1) In addition to other taxes imposed by law, there is levied an additional excise or privilege tax on the first sale of tobacco products other than cigarettes at the rate of thirty-six percent (36%) of the invoice price to a wholesaler or retailer, before discounts.

(2) However, the excise or privilege tax levied under subdivision (a)(1) of this section is subject to the limitation stated in § 26-57-208(2)(B) .

(3) As used in this subsection, "invoice price" means the same as defined in § 26-57-203 .

(b) (1) The tax levied by this section shall be reported and paid by wholesalers that shall be licensed under § 26-57-214 . (2) However, unless a retailer has confirmed and establishes by clear and convincing evidence that the tax levied under this section has been paid previously on the tobacco products, the retailer is liable for reporting and paying this tax when the retailer obtains tobacco products from a person other than a wholesaler licensed under § 26-57-214 .

(1) The tax levied by this section shall be reported and paid by wholesalers that shall be licensed under § 26-57-214 .

(2) However, unless a retailer has confirmed and establishes by clear and convincing evidence that the tax levied under this section has been paid previously on the tobacco products, the retailer is liable for reporting and paying this tax when the retailer obtains tobacco products from a person other than a wholesaler licensed under § 26-57-214 .

(c) The exemptions and waivers allowed under §§ 26-57-209 and 26-57-210 [repealed] shall apply to this section.

(d) 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.

(e) 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 in accordance with the Revenue Stabilization Law, § 19-5-201 et seq.

(f) As provided in § 26-57-244 , the Secretary 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.

(g) (1) A taxpayer that fails to report and remit the tobacco tax due on tobacco products obtained from a person other than a wholesaler that is licensed under § 26-57-214 is subject to the following penalties: (A) For the first offense, five percent (5%) of the total tobacco tax due; (B) For the second offense, twenty percent (20%) of the total tobacco tax due; and (C) For the third and any subsequent offenses, twenty-five percent (25%) of the total tobacco tax due. (2) In addition, a taxpayer's cigarette or tobacco permit shall be revoked for a period of ninety (90) days for the third and subsequent offenses.

(1) A taxpayer that fails to report and remit the tobacco tax due on tobacco products obtained from a person other than a wholesaler that is licensed under § 26-57-214 is subject to the following penalties: (A) For the first offense, five percent (5%) of the total tobacco tax due; (B) For the second offense, twenty percent (20%) of the total tobacco tax due; and (C) For the third and any subsequent offenses, twenty-five percent (25%) of the total tobacco tax due.

(A) For the first offense, five percent (5%) of the total tobacco tax due;

(B) For the second offense, twenty percent (20%) of the total tobacco tax due; and

(C) For the third and any subsequent offenses, twenty-five percent (25%) of the total tobacco tax due.

(2) In addition, a taxpayer's cigarette or tobacco permit shall be revoked for a period of ninety (90) days for the third and subsequent offenses.

Amended by Act 2019, No. 910,§ 4192, eff. 7/1/2019.

Amended by Act 2015, No. 1119,§ 13, eff. 4/6/2015.

Amended by Act 2015, No. 1119,§ 12, eff. 4/6/2015.

Amended by Act 2013, No. 510,§ 4, eff. the first day of the second calendar month following the effective date of the act.

Acts 2009, No. 180, § 5.
Ark. Code Ann. § 26-74-613 — AR Code / Title 26 / Chapter 74 / Subchapter 6 / Section 26-74-613
Administration of Local Sales and Use Tax Trust Fund
Status: in_force

(a) (1) There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund for the remittance of local sales and use taxes that shall be known as the "Local Sales and Use Tax Trust Fund". (2) (A) There is also created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund which shall be known as the "Identification Pending Trust Fund for Local Sales and Use Taxes". (B) (i) Money reported as local sales and use taxes that was collected in local taxing jurisdictions that are not immediately identifiable and money collected in local jurisdictions that have no tax shall be deposited into the Identification Pending Trust Fund for Local Sales and Use Taxes. (ii) When a local tax jurisdiction is identified for money that has been deposited into the Identification Pending Trust Fund for Local Sales and Use Taxes, the money shall be transferred to the Local Sales and Use Tax Trust Fund. (iii) When the total amount in the Identification Pending Trust Fund for Local Sales and Use Taxes exceeds fifty thousand dollars ($50,000), the Treasurer of State shall transfer any amount in excess of fifty thousand dollars ($50,000) to general revenues. (b) (1) As the administrator of the Local Sales and Use Tax Trust Fund, the Treasurer of State shall review the flow of money through the Local Sales and Use Tax Trust Fund in the State Treasury for the purpose of estimating the amount of the moneys as may be surplus to the immediate requirements of the Local Sales and Use Tax Trust Fund. (2) (A) After making the estimate, the Treasurer of State shall invest the estimated surplus amount in certificates of deposit issued by any financial institution located in the State of Arkansas. (B) All interest income derived from the certificates of deposit shall be credited as trust fund income to the Local Sales and Use Tax Trust Fund. (3) The Treasurer of State shall transmit monthly to the county treasurer the county's proportionate share of the interest derived from investment of the Local Sales and Use Tax Trust Fund. Acts 2001, No. 1796, § 1.

(a) (1) There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund for the remittance of local sales and use taxes that shall be known as the "Local Sales and Use Tax Trust Fund". (2) (A) There is also created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund which shall be known as the "Identification Pending Trust Fund for Local Sales and Use Taxes". (B) (i) Money reported as local sales and use taxes that was collected in local taxing jurisdictions that are not immediately identifiable and money collected in local jurisdictions that have no tax shall be deposited into the Identification Pending Trust Fund for Local Sales and Use Taxes. (ii) When a local tax jurisdiction is identified for money that has been deposited into the Identification Pending Trust Fund for Local Sales and Use Taxes, the money shall be transferred to the Local Sales and Use Tax Trust Fund. (iii) When the total amount in the Identification Pending Trust Fund for Local Sales and Use Taxes exceeds fifty thousand dollars ($50,000), the Treasurer of State shall transfer any amount in excess of fifty thousand dollars ($50,000) to general revenues.

(1) There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund for the remittance of local sales and use taxes that shall be known as the "Local Sales and Use Tax Trust Fund".

(2) (A) There is also created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund which shall be known as the "Identification Pending Trust Fund for Local Sales and Use Taxes". (B) (i) Money reported as local sales and use taxes that was collected in local taxing jurisdictions that are not immediately identifiable and money collected in local jurisdictions that have no tax shall be deposited into the Identification Pending Trust Fund for Local Sales and Use Taxes. (ii) When a local tax jurisdiction is identified for money that has been deposited into the Identification Pending Trust Fund for Local Sales and Use Taxes, the money shall be transferred to the Local Sales and Use Tax Trust Fund. (iii) When the total amount in the Identification Pending Trust Fund for Local Sales and Use Taxes exceeds fifty thousand dollars ($50,000), the Treasurer of State shall transfer any amount in excess of fifty thousand dollars ($50,000) to general revenues.

(A) There is also created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund which shall be known as the "Identification Pending Trust Fund for Local Sales and Use Taxes".

(B) (i) Money reported as local sales and use taxes that was collected in local taxing jurisdictions that are not immediately identifiable and money collected in local jurisdictions that have no tax shall be deposited into the Identification Pending Trust Fund for Local Sales and Use Taxes. (ii) When a local tax jurisdiction is identified for money that has been deposited into the Identification Pending Trust Fund for Local Sales and Use Taxes, the money shall be transferred to the Local Sales and Use Tax Trust Fund. (iii) When the total amount in the Identification Pending Trust Fund for Local Sales and Use Taxes exceeds fifty thousand dollars ($50,000), the Treasurer of State shall transfer any amount in excess of fifty thousand dollars ($50,000) to general revenues.

(i) Money reported as local sales and use taxes that was collected in local taxing jurisdictions that are not immediately identifiable and money collected in local jurisdictions that have no tax shall be deposited into the Identification Pending Trust Fund for Local Sales and Use Taxes.

(ii) When a local tax jurisdiction is identified for money that has been deposited into the Identification Pending Trust Fund for Local Sales and Use Taxes, the money shall be transferred to the Local Sales and Use Tax Trust Fund.

(iii) When the total amount in the Identification Pending Trust Fund for Local Sales and Use Taxes exceeds fifty thousand dollars ($50,000), the Treasurer of State shall transfer any amount in excess of fifty thousand dollars ($50,000) to general revenues.

(b) (1) As the administrator of the Local Sales and Use Tax Trust Fund, the Treasurer of State shall review the flow of money through the Local Sales and Use Tax Trust Fund in the State Treasury for the purpose of estimating the amount of the moneys as may be surplus to the immediate requirements of the Local Sales and Use Tax Trust Fund. (2) (A) After making the estimate, the Treasurer of State shall invest the estimated surplus amount in certificates of deposit issued by any financial institution located in the State of Arkansas. (B) All interest income derived from the certificates of deposit shall be credited as trust fund income to the Local Sales and Use Tax Trust Fund. (3) The Treasurer of State shall transmit monthly to the county treasurer the county's proportionate share of the interest derived from investment of the Local Sales and Use Tax Trust Fund.

(1) As the administrator of the Local Sales and Use Tax Trust Fund, the Treasurer of State shall review the flow of money through the Local Sales and Use Tax Trust Fund in the State Treasury for the purpose of estimating the amount of the moneys as may be surplus to the immediate requirements of the Local Sales and Use Tax Trust Fund.

(2) (A) After making the estimate, the Treasurer of State shall invest the estimated surplus amount in certificates of deposit issued by any financial institution located in the State of Arkansas. (B) All interest income derived from the certificates of deposit shall be credited as trust fund income to the Local Sales and Use Tax Trust Fund.

(A) After making the estimate, the Treasurer of State shall invest the estimated surplus amount in certificates of deposit issued by any financial institution located in the State of Arkansas.

(B) All interest income derived from the certificates of deposit shall be credited as trust fund income to the Local Sales and Use Tax Trust Fund.

(3) The Treasurer of State shall transmit monthly to the county treasurer the county's proportionate share of the interest derived from investment of the Local Sales and Use Tax Trust Fund.

Acts 2001, No. 1796, § 1.
Ark. Code Ann. § 26-51-509 — AR Code / Title 26 / Chapter 51 / Subchapter 5 / Section 26-51-509
Apprenticeship program - Definition
Status: in_force

(a) As used in this section, "apprentice" means a worker who is at least sixteen (16) years of age and is employed: (1) To learn an apprenticeable occupation under 29 C.F.R. § 29.1 et seq., as it existed on January 1, 1995; or (2) In an apprenticeship or work-based learning program that meets: (A) Either the standards of program design for a nationally recognized curriculum or business, industry, or trade association standards; and (B) The criteria for vocationally approved apprentice or work-based learning programs. (b) (1) (A) A taxpayer who employs an apprentice is allowed an income tax credit in the amount of two thousand dollars ($2,000) or ten percent (10%) of the wages earned by the apprentice, whichever is less, against the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., for each apprentice. (B) However, the total amount of the income tax credit that a taxpayer may claim under this section for a tax year shall not exceed ten thousand dollars ($10,000). (2) (A) A partner's or member's distributive share of the income tax credit shall be determined by the partnership or limited liability company agreement, unless the agreement does not have substantial economic effect or does not provide for the allocation of the income tax credits. (B) If the agreement does not have substantial economic effect or does not provide for the allocation of the income tax credit, the income tax credit shall be allocated according to the partner's or member's interest in the partnership or limited liability company, pursuant to 26 U.S.C. § 704(b) , as in effect on January 1, 1995. (c) (1) To claim the benefits of this section, a taxpayer shall obtain a certification from the following, certifying to the Department of Finance and Administration that the taxpayer has met all the requirements and qualifications stated in this section: (A) If the apprentice is employed as described in subdivision (a)(1) of this section, the United States Office of Apprenticeship; or (B) If the apprentice is employed as described in subdivision (a)(2) of this section, the Office of Skills Development. (2) The certification to the department shall include the total amount of wages paid to each apprentice employed by the taxpayer or organization exempt from taxation under 26 U.S.C. § 501(c)(3) in the taxable year for which the taxpayer claims the income tax credit provided in this section. (d) (1) The amount of the income tax credit that may be used by a taxpayer for a taxable year may not exceed the amount of individual or corporate income tax otherwise due. (2) Any unused income tax credit may be carried over for a maximum of two (2) consecutive taxable years. (e) If the business is an S corporation, the pass-through provisions of § 26-51-409 , as in effect for the taxable year the income tax credit is earned, shall be applicable. (f) A taxpayer who trains an apprentice as provided in subsection (b) of this section is entitled to the income tax credit provided in this section for the apprentice, even though the apprentice receives his or her wages for such training from an organization exempt from taxation under 26 U.S.C. § 501(c)(3) . (g) (1) The department shall promulgate such rules as may be deemed necessary to carry out the purposes of this section. (2) The department shall consult with the United States Office of Apprenticeship and the Office of Skills Development during the promulgation of the rules. Amended by Act 2019, No. 213,§ 2, eff. 7/24/2019. Amended by Act 2019, No. 213,§ 1, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 2399, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 2398, eff. 7/1/2019. Amended by Act 2017, No. 1042,§ 1, eff. for tax years beginning on or after 1/1/2018. Acts 1995, No. 1103, §§ 1-5.

(a) As used in this section, "apprentice" means a worker who is at least sixteen (16) years of age and is employed: (1) To learn an apprenticeable occupation under 29 C.F.R. § 29.1 et seq., as it existed on January 1, 1995; or (2) In an apprenticeship or work-based learning program that meets: (A) Either the standards of program design for a nationally recognized curriculum or business, industry, or trade association standards; and (B) The criteria for vocationally approved apprentice or work-based learning programs.

(1) To learn an apprenticeable occupation under 29 C.F.R. § 29.1 et seq., as it existed on January 1, 1995; or

(2) In an apprenticeship or work-based learning program that meets: (A) Either the standards of program design for a nationally recognized curriculum or business, industry, or trade association standards; and (B) The criteria for vocationally approved apprentice or work-based learning programs.

(A) Either the standards of program design for a nationally recognized curriculum or business, industry, or trade association standards; and

(B) The criteria for vocationally approved apprentice or work-based learning programs.

(b) (1) (A) A taxpayer who employs an apprentice is allowed an income tax credit in the amount of two thousand dollars ($2,000) or ten percent (10%) of the wages earned by the apprentice, whichever is less, against the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., for each apprentice. (B) However, the total amount of the income tax credit that a taxpayer may claim under this section for a tax year shall not exceed ten thousand dollars ($10,000). (2) (A) A partner's or member's distributive share of the income tax credit shall be determined by the partnership or limited liability company agreement, unless the agreement does not have substantial economic effect or does not provide for the allocation of the income tax credits. (B) If the agreement does not have substantial economic effect or does not provide for the allocation of the income tax credit, the income tax credit shall be allocated according to the partner's or member's interest in the partnership or limited liability company, pursuant to 26 U.S.C. § 704(b) , as in effect on January 1, 1995.

(1) (A) A taxpayer who employs an apprentice is allowed an income tax credit in the amount of two thousand dollars ($2,000) or ten percent (10%) of the wages earned by the apprentice, whichever is less, against the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., for each apprentice. (B) However, the total amount of the income tax credit that a taxpayer may claim under this section for a tax year shall not exceed ten thousand dollars ($10,000).

(A) A taxpayer who employs an apprentice is allowed an income tax credit in the amount of two thousand dollars ($2,000) or ten percent (10%) of the wages earned by the apprentice, whichever is less, against the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., for each apprentice.

(B) However, the total amount of the income tax credit that a taxpayer may claim under this section for a tax year shall not exceed ten thousand dollars ($10,000).

(2) (A) A partner's or member's distributive share of the income tax credit shall be determined by the partnership or limited liability company agreement, unless the agreement does not have substantial economic effect or does not provide for the allocation of the income tax credits. (B) If the agreement does not have substantial economic effect or does not provide for the allocation of the income tax credit, the income tax credit shall be allocated according to the partner's or member's interest in the partnership or limited liability company, pursuant to 26 U.S.C. § 704(b) , as in effect on January 1, 1995.

(A) A partner's or member's distributive share of the income tax credit shall be determined by the partnership or limited liability company agreement, unless the agreement does not have substantial economic effect or does not provide for the allocation of the income tax credits.

(B) If the agreement does not have substantial economic effect or does not provide for the allocation of the income tax credit, the income tax credit shall be allocated according to the partner's or member's interest in the partnership or limited liability company, pursuant to 26 U.S.C. § 704(b) , as in effect on January 1, 1995.

(c) (1) To claim the benefits of this section, a taxpayer shall obtain a certification from the following, certifying to the Department of Finance and Administration that the taxpayer has met all the requirements and qualifications stated in this section: (A) If the apprentice is employed as described in subdivision (a)(1) of this section, the United States Office of Apprenticeship; or (B) If the apprentice is employed as described in subdivision (a)(2) of this section, the Office of Skills Development. (2) The certification to the department shall include the total amount of wages paid to each apprentice employed by the taxpayer or organization exempt from taxation under 26 U.S.C. § 501(c)(3) in the taxable year for which the taxpayer claims the income tax credit provided in this section.

(1) To claim the benefits of this section, a taxpayer shall obtain a certification from the following, certifying to the Department of Finance and Administration that the taxpayer has met all the requirements and qualifications stated in this section: (A) If the apprentice is employed as described in subdivision (a)(1) of this section, the United States Office of Apprenticeship; or (B) If the apprentice is employed as described in subdivision (a)(2) of this section, the Office of Skills Development.

(A) If the apprentice is employed as described in subdivision (a)(1) of this section, the United States Office of Apprenticeship; or

(B) If the apprentice is employed as described in subdivision (a)(2) of this section, the Office of Skills Development.

(2) The certification to the department shall include the total amount of wages paid to each apprentice employed by the taxpayer or organization exempt from taxation under 26 U.S.C. § 501(c)(3) in the taxable year for which the taxpayer claims the income tax credit provided in this section.

(d) (1) The amount of the income tax credit that may be used by a taxpayer for a taxable year may not exceed the amount of individual or corporate income tax otherwise due. (2) Any unused income tax credit may be carried over for a maximum of two (2) consecutive taxable years.

(1) The amount of the income tax credit that may be used by a taxpayer for a taxable year may not exceed the amount of individual or corporate income tax otherwise due.

(2) Any unused income tax credit may be carried over for a maximum of two (2) consecutive taxable years.

(e) If the business is an S corporation, the pass-through provisions of § 26-51-409 , as in effect for the taxable year the income tax credit is earned, shall be applicable.

(f) A taxpayer who trains an apprentice as provided in subsection (b) of this section is entitled to the income tax credit provided in this section for the apprentice, even though the apprentice receives his or her wages for such training from an organization exempt from taxation under 26 U.S.C. § 501(c)(3) .

(g) (1) The department shall promulgate such rules as may be deemed necessary to carry out the purposes of this section. (2) The department shall consult with the United States Office of Apprenticeship and the Office of Skills Development during the promulgation of the rules.

(1) The department shall promulgate such rules as may be deemed necessary to carry out the purposes of this section.

(2) The department shall consult with the United States Office of Apprenticeship and the Office of Skills Development during the promulgation of the rules.

Amended by Act 2019, No. 213,§ 2, eff. 7/24/2019.

Amended by Act 2019, No. 213,§ 1, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 2399, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 2398, eff. 7/1/2019.

Amended by Act 2017, No. 1042,§ 1, eff. for tax years beginning on or after 1/1/2018.

Acts 1995, No. 1103, §§ 1-5.
Ark. Code Ann. § 26-51-427 — AR Code / Title 26 / Chapter 51 / Subchapter 4 / Section 26-51-427
Deductions - Net operating loss carryover - Definitions
Status: in_force

In addition to other deductions allowed by this chapter, there is allowed as a deduction from gross income a net operating loss carryover under the following rules: (1) (A) The net operating loss for any taxable year may be carried over to the next-succeeding taxable year and annually thereafter for a total period of three (3) years next succeeding the year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of any succeeding year, whichever is earlier, if the net operating loss occurred in an income year beginning before January 1, 1987. The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(A). (B) The net operating loss for any year ending on or after the passage of the Income Tax Act of 1929, § 26-51-101 et seq., and for any succeeding taxable year before January 1, 2020, may be carried over to the next-succeeding taxable year and annually thereafter for a total period of five (5) years next succeeding the year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of any succeeding year, whichever is earlier, if the net operating loss occurred in an income year beginning on or after January 1, 1987, and before January 1, 2020. The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(B). (C) (i) For net operating losses occurring in taxable years beginning on or after January 1, 2020, the net operating loss may be carried over to the next succeeding taxable year and annually thereafter for the following number of years next succeeding the tax year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of a succeeding year, whichever is earlier: (a) For net operating losses occurring in the tax year beginning January 1, 2020, a total period of eight (8) years; and (b) For net operating losses occurring in tax years beginning on or after January 1, 2021, a total period of ten (10) years. (ii) The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(C). (D) As used in this section, "taxable income" or "net income" means the net income computed without benefit of the deduction for income taxes, personal exemptions, and credit for dependents. The net income of the taxable period to which the net operating loss deduction, as adjusted, is carried is the net income before the deduction of federal income taxes, personal exemption, and credit for dependents. The income taxes, exemptions, and credits described in this subdivision (1)(D) shall not be used to increase the net operating loss that may be carried to any other taxable period. (E) (i) As used in this section, "qualified medical company" means a corporation engaged in: (a) Research and development in the medical field; and (b) The manufacture and distribution of medical products, including therapeutic and diagnostic products. (ii) In the case of a qualified medical company, a net operating loss for any taxable year shall be a net operating loss carryover to each of the fifteen (15) taxable years following the taxable year of the loss. (iii) If the qualified medical company is a Subchapter S corporation, the pass-through provisions of § 26-51-409 , as in effect for the taxable year of the net operating loss, are applicable. (iv) The net operating loss provisions stated in this subdivision (1)(E), which resulted from the operation of a qualified medical company, are effective for taxable years beginning on and after January 1, 1987; (2) As used in this section, "net operating loss" means the excess of allowable deductions over gross income for the taxable year, subject to the following adjustments: (A) There shall be added to gross income all nontaxable income not required by law to be reported as gross income less any expenses properly and reasonably incurred in earning nontaxable income, which expenses would otherwise be nondeductible; (B) In the case of a taxpayer other than a corporation, deductions, not including federal income taxes, not attributable to the operation of the trade or business, are eliminated from the deductions otherwise allowable for the taxable year to the extent that they exceed gross income not derived from trade or business. Personal exemptions and credit for dependents are not a deduction for the purpose of computing a net operating loss; (C) A net operating loss deduction shall not be allowed; and (D) In the case of a taxpayer other than a Subchapter C corporation, as defined in 26 U.S.C. § 1361 , as in effect on January 1, 1985: (i) The amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includable on account of gains from sales or exchanges of capital assets; and (ii) The deduction for long-term capital gains provided by 26 U.S.C. § 1202 [repealed], as in effect on January 1, 1985, shall not be allowed; and (3) In the case of the acquisition of assets of one (1) corporation by another corporation, the acquiring corporation shall succeed to and take into account any net operating loss carryover apportionable to Arkansas, under the Uniform Division of Income for Tax Purposes Act, § 26-51-701 et seq., that the acquired corporation could have claimed had it not been acquired, subject to the following conditions: (A) The net operating loss may not be carried forward to a taxable year that ends more than three (3) years after the taxable year in which the net operating loss occurred if the net operating loss occurred in an income year beginning before January 1, 1987; (B) The net operating loss may not be carried forward to a taxable year that ends more than five (5) years after the taxable year in which the net operating loss occurred if the net operating loss occurred in an income year beginning on or after January 1, 1987, and before January 1, 2020; (C) The net operating loss may not be carried forward to a taxable year that ends more than the number of years stated in subdivision (1)(C) of this section after the taxable year in which the net operating loss occurred if the net operating loss occurred in an income year beginning on or after January 1, 2020; and (D) The net operating loss may be claimed only when the ownership of both the acquired and acquiring corporations is substantially the same in that not less than eighty percent (80%) of the voting stock of each corporation is owned by the same person or, before the acquisition, the acquiring corporation owned at least eighty percent (80%) of the voting stock of the acquired corporation. The carryover losses are allowed only in those cases in which the assets of the corporation going out of existence earn sufficient profits apportionable to Arkansas under the Uniform Division of Income for Tax Purposes Act, § 26-51-701 et seq., in the post-merger period to absorb the carryover losses claimed by the surviving corporation. Amended by Act 2019, No. 822,§ 5, eff. for tax years beginning on or after 1/1/2020. Acts 1929, No. 118, Art. 3, § 13; Pope's Dig., § 14036; Acts 1957, No. 147, § 1; 1975, No. 676, § 1; 1979, No. 740, § 1; 1985, No. 848, § 2; 1985 (1st Ex. Sess.), No. 20, § 2; 1985 (1st Ex. Sess.), No. 32, § 2; A.S.A. 1947, § 84-2016; Acts 1987, No. 382, §§ 18, 19; 1989, No. 615, § 1; 1995, No. 586, § 4.

In addition to other deductions allowed by this chapter, there is allowed as a deduction from gross income a net operating loss carryover under the following rules:

(1) (A) The net operating loss for any taxable year may be carried over to the next-succeeding taxable year and annually thereafter for a total period of three (3) years next succeeding the year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of any succeeding year, whichever is earlier, if the net operating loss occurred in an income year beginning before January 1, 1987. The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(A). (B) The net operating loss for any year ending on or after the passage of the Income Tax Act of 1929, § 26-51-101 et seq., and for any succeeding taxable year before January 1, 2020, may be carried over to the next-succeeding taxable year and annually thereafter for a total period of five (5) years next succeeding the year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of any succeeding year, whichever is earlier, if the net operating loss occurred in an income year beginning on or after January 1, 1987, and before January 1, 2020. The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(B). (C) (i) For net operating losses occurring in taxable years beginning on or after January 1, 2020, the net operating loss may be carried over to the next succeeding taxable year and annually thereafter for the following number of years next succeeding the tax year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of a succeeding year, whichever is earlier: (a) For net operating losses occurring in the tax year beginning January 1, 2020, a total period of eight (8) years; and (b) For net operating losses occurring in tax years beginning on or after January 1, 2021, a total period of ten (10) years. (ii) The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(C). (D) As used in this section, "taxable income" or "net income" means the net income computed without benefit of the deduction for income taxes, personal exemptions, and credit for dependents. The net income of the taxable period to which the net operating loss deduction, as adjusted, is carried is the net income before the deduction of federal income taxes, personal exemption, and credit for dependents. The income taxes, exemptions, and credits described in this subdivision (1)(D) shall not be used to increase the net operating loss that may be carried to any other taxable period. (E) (i) As used in this section, "qualified medical company" means a corporation engaged in: (a) Research and development in the medical field; and (b) The manufacture and distribution of medical products, including therapeutic and diagnostic products. (ii) In the case of a qualified medical company, a net operating loss for any taxable year shall be a net operating loss carryover to each of the fifteen (15) taxable years following the taxable year of the loss. (iii) If the qualified medical company is a Subchapter S corporation, the pass-through provisions of § 26-51-409 , as in effect for the taxable year of the net operating loss, are applicable. (iv) The net operating loss provisions stated in this subdivision (1)(E), which resulted from the operation of a qualified medical company, are effective for taxable years beginning on and after January 1, 1987;

(A) The net operating loss for any taxable year may be carried over to the next-succeeding taxable year and annually thereafter for a total period of three (3) years next succeeding the year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of any succeeding year, whichever is earlier, if the net operating loss occurred in an income year beginning before January 1, 1987. The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(A).

(B) The net operating loss for any year ending on or after the passage of the Income Tax Act of 1929, § 26-51-101 et seq., and for any succeeding taxable year before January 1, 2020, may be carried over to the next-succeeding taxable year and annually thereafter for a total period of five (5) years next succeeding the year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of any succeeding year, whichever is earlier, if the net operating loss occurred in an income year beginning on or after January 1, 1987, and before January 1, 2020. The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(B).

(C) (i) For net operating losses occurring in taxable years beginning on or after January 1, 2020, the net operating loss may be carried over to the next succeeding taxable year and annually thereafter for the following number of years next succeeding the tax year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of a succeeding year, whichever is earlier: (a) For net operating losses occurring in the tax year beginning January 1, 2020, a total period of eight (8) years; and (b) For net operating losses occurring in tax years beginning on or after January 1, 2021, a total period of ten (10) years. (ii) The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(C).

(i) For net operating losses occurring in taxable years beginning on or after January 1, 2020, the net operating loss may be carried over to the next succeeding taxable year and annually thereafter for the following number of years next succeeding the tax year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of a succeeding year, whichever is earlier: (a) For net operating losses occurring in the tax year beginning January 1, 2020, a total period of eight (8) years; and (b) For net operating losses occurring in tax years beginning on or after January 1, 2021, a total period of ten (10) years.

(a) For net operating losses occurring in the tax year beginning January 1, 2020, a total period of eight (8) years; and

(b) For net operating losses occurring in tax years beginning on or after January 1, 2021, a total period of ten (10) years.

(ii) The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(C).

(D) As used in this section, "taxable income" or "net income" means the net income computed without benefit of the deduction for income taxes, personal exemptions, and credit for dependents. The net income of the taxable period to which the net operating loss deduction, as adjusted, is carried is the net income before the deduction of federal income taxes, personal exemption, and credit for dependents. The income taxes, exemptions, and credits described in this subdivision (1)(D) shall not be used to increase the net operating loss that may be carried to any other taxable period.

(E) (i) As used in this section, "qualified medical company" means a corporation engaged in: (a) Research and development in the medical field; and (b) The manufacture and distribution of medical products, including therapeutic and diagnostic products. (ii) In the case of a qualified medical company, a net operating loss for any taxable year shall be a net operating loss carryover to each of the fifteen (15) taxable years following the taxable year of the loss. (iii) If the qualified medical company is a Subchapter S corporation, the pass-through provisions of § 26-51-409 , as in effect for the taxable year of the net operating loss, are applicable. (iv) The net operating loss provisions stated in this subdivision (1)(E), which resulted from the operation of a qualified medical company, are effective for taxable years beginning on and after January 1, 1987;

(i) As used in this section, "qualified medical company" means a corporation engaged in: (a) Research and development in the medical field; and (b) The manufacture and distribution of medical products, including therapeutic and diagnostic products.

(a) Research and development in the medical field; and

(b) The manufacture and distribution of medical products, including therapeutic and diagnostic products.

(ii) In the case of a qualified medical company, a net operating loss for any taxable year shall be a net operating loss carryover to each of the fifteen (15) taxable years following the taxable year of the loss.

(iii) If the qualified medical company is a Subchapter S corporation, the pass-through provisions of § 26-51-409 , as in effect for the taxable year of the net operating loss, are applicable.

(iv) The net operating loss provisions stated in this subdivision (1)(E), which resulted from the operation of a qualified medical company, are effective for taxable years beginning on and after January 1, 1987;

(2) As used in this section, "net operating loss" means the excess of allowable deductions over gross income for the taxable year, subject to the following adjustments: (A) There shall be added to gross income all nontaxable income not required by law to be reported as gross income less any expenses properly and reasonably incurred in earning nontaxable income, which expenses would otherwise be nondeductible; (B) In the case of a taxpayer other than a corporation, deductions, not including federal income taxes, not attributable to the operation of the trade or business, are eliminated from the deductions otherwise allowable for the taxable year to the extent that they exceed gross income not derived from trade or business. Personal exemptions and credit for dependents are not a deduction for the purpose of computing a net operating loss; (C) A net operating loss deduction shall not be allowed; and (D) In the case of a taxpayer other than a Subchapter C corporation, as defined in 26 U.S.C. § 1361 , as in effect on January 1, 1985: (i) The amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includable on account of gains from sales or exchanges of capital assets; and (ii) The deduction for long-term capital gains provided by 26 U.S.C. § 1202 [repealed], as in effect on January 1, 1985, shall not be allowed; and

(A) There shall be added to gross income all nontaxable income not required by law to be reported as gross income less any expenses properly and reasonably incurred in earning nontaxable income, which expenses would otherwise be nondeductible;

(B) In the case of a taxpayer other than a corporation, deductions, not including federal income taxes, not attributable to the operation of the trade or business, are eliminated from the deductions otherwise allowable for the taxable year to the extent that they exceed gross income not derived from trade or business. Personal exemptions and credit for dependents are not a deduction for the purpose of computing a net operating loss;

(C) A net operating loss deduction shall not be allowed; and

(D) In the case of a taxpayer other than a Subchapter C corporation, as defined in 26 U.S.C. § 1361 , as in effect on January 1, 1985: (i) The amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includable on account of gains from sales or exchanges of capital assets; and (ii) The deduction for long-term capital gains provided by 26 U.S.C. § 1202 [repealed], as in effect on January 1, 1985, shall not be allowed; and

(i) The amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includable on account of gains from sales or exchanges of capital assets; and

(ii) The deduction for long-term capital gains provided by 26 U.S.C. § 1202 [repealed], as in effect on January 1, 1985, shall not be allowed; and

(3) In the case of the acquisition of assets of one (1) corporation by another corporation, the acquiring corporation shall succeed to and take into account any net operating loss carryover apportionable to Arkansas, under the Uniform Division of Income for Tax Purposes Act, § 26-51-701 et seq., that the acquired corporation could have claimed had it not been acquired, subject to the following conditions: (A) The net operating loss may not be carried forward to a taxable year that ends more than three (3) years after the taxable year in which the net operating loss occurred if the net operating loss occurred in an income year beginning before January 1, 1987; (B) The net operating loss may not be carried forward to a taxable year that ends more than five (5) years after the taxable year in which the net operating loss occurred if the net operating loss occurred in an income year beginning on or after January 1, 1987, and before January 1, 2020; (C) The net operating loss may not be carried forward to a taxable year that ends more than the number of years stated in subdivision (1)(C) of this section after the taxable year in which the net operating loss occurred if the net operating loss occurred in an income year beginning on or after January 1, 2020; and (D) The net operating loss may be claimed only when the ownership of both the acquired and acquiring corporations is substantially the same in that not less than eighty percent (80%) of the voting stock of each corporation is owned by the same person or, before the acquisition, the acquiring corporation owned at least eighty percent (80%) of the voting stock of the acquired corporation. The carryover losses are allowed only in those cases in which the assets of the corporation going out of existence earn sufficient profits apportionable to Arkansas under the Uniform Division of Income for Tax Purposes Act, § 26-51-701 et seq., in the post-merger period to absorb the carryover losses claimed by the surviving corporation.

(A) The net operating loss may not be carried forward to a taxable year that ends more than three (3) years after the taxable year in which the net operating loss occurred if the net operating loss occurred in an income year beginning before January 1, 1987;

(B) The net operating loss may not be carried forward to a taxable year that ends more than five (5) years after the taxable year in which the net operating loss occurred if the net operating loss occurred in an income year beginning on or after January 1, 1987, and before January 1, 2020;

(C) The net operating loss may not be carried forward to a taxable year that ends more than the number of years stated in subdivision (1)(C) of this section after the taxable year in which the net operating loss occurred if the net operating loss occurred in an income year beginning on or after January 1, 2020; and

(D) The net operating loss may be claimed only when the ownership of both the acquired and acquiring corporations is substantially the same in that not less than eighty percent (80%) of the voting stock of each corporation is owned by the same person or, before the acquisition, the acquiring corporation owned at least eighty percent (80%) of the voting stock of the acquired corporation. The carryover losses are allowed only in those cases in which the assets of the corporation going out of existence earn sufficient profits apportionable to Arkansas under the Uniform Division of Income for Tax Purposes Act, § 26-51-701 et seq., in the post-merger period to absorb the carryover losses claimed by the surviving corporation.

Amended by Act 2019, No. 822,§ 5, eff. for tax years beginning on or after 1/1/2020.

Acts 1929, No. 118, Art. 3, § 13; Pope's Dig., § 14036; Acts 1957, No. 147, § 1; 1975, No. 676, § 1; 1979, No. 740, § 1; 1985, No. 848, § 2; 1985 (1st Ex. Sess.), No. 20, § 2; 1985 (1st Ex. Sess.), No. 32, § 2; A.S.A. 1947, § 84-2016; Acts 1987, No. 382, §§ 18, 19; 1989, No. 615, § 1; 1995, No. 586, § 4.
Ark. Code Ann. § 26-57-236 — AR Code / Title 26 / Chapter 57 / Subchapter 2 / Section 26-57-236
Stamp deputies - Appointment and revocation of appointment - Reporting
Status: in_force

(a) The Secretary of the Department of Finance and Administration shall furnish tax stamps to licensed wholesalers through stamp deputies. (b) (1) The secretary may appoint and commission stamp deputies to handle the stamps and collect the tax on cigarettes before sales of cigarettes are made to the retailers. (2) The secretary shall not appoint and commission a person as a stamp deputy unless the person: (A) Is the owner or officer of a wholesaler licensed under this subchapter; (B) Certifies each calendar quarter on a form prescribed by the secretary that the person has and will comply with the requirements of this subchapter; (C) Consents to the jurisdiction of the state to enforce the requirements of this subchapter and waives any claim of sovereign immunity to the contrary; (D) Provides complete and accurate reports as required by this subchapter; (E) Waives the confidentiality laws necessary to permit the secretary to: (i) Create and make available the list described in subdivision (b)(6) of this section; and (ii) Share information reported under this subchapter and other laws with the taxing authorities or law enforcement authorities of other states or with any other entity permitted by the secretary to aggregate the data; (F) Has furnished a bond in an amount and in the form prescribed by the secretary; and (G) If located outside of the state, has appointed an agent in this state to act as agent for the service of process for the purpose of enforcing this subchapter. (3) An appointment and commission as a stamp deputy by the secretary is effective for one (1) year. (4) A stamp deputy acting within the scope of the stamp deputy's authority is an agent of the secretary and is accountable as such for any wrongful acts. (5) A stamp deputy's open account shall not exceed seventy-five percent (75%) of the total amount of the bond provided by the stamp deputy. (6) (A) The secretary shall list on the website of the Department of Finance and Administration the names of all persons appointed and commissioned as stamp deputies under this section. (B) Manufacturers, importers, and sales entity affiliates are entitled to rely on the list described in subdivision (b)(6)(A) of this section in selling cigarettes. (c) (1) A stamp deputy's appointment and commission are subject to revocation if the stamp deputy: (A) Fails to submit a report required under this subchapter or the Tobacco Products Reporting Act, § 26-57-1401 et seq.; (B) Files an incomplete or inaccurate report or an inaccurate certification; (C) Fails to pay taxes due under this subchapter; (D) Sells cigarettes in or into the state in a package that bears a stamp permitted under this subchapter that is not the correct stamp and provides for a lower level of tax than the correct stamp; (E) Sells unstamped cigarettes in, into, or from the state or possesses unstamped cigarettes in the state except as permitted under this subchapter; (F) Purchases, sells in or into the state, or affixes a tax stamp to a package containing cigarettes of a manufacturer or brand family that is not listed on the directory of cigarettes approved for stamping and sale published by the Attorney General under § 26-57-1303 , or possesses cigarettes described in this subdivision (c)(1)(F) more than twenty-one (21) days after receiving notice that the manufacturer or brand family is not on the state directory, except as otherwise permitted under this subchapter; (G) Purchases or sells cigarettes in violation of this subchapter; or (H) Has his or her appointment and commission or similar license or permit revoked or terminated in any other state based on acts or omissions that would, if done in Arkansas, be grounds for the revocation of the stamp deputy's appointment and commission under this section unless the stamp deputy demonstrates that the revocation or termination in the other state was effected without due process. (2) (A) If a stamp deputy commits a violation under subdivisions (c)(1)(A)-(D) of this section that was not knowing, the stamp deputy is entitled to cure the violation within thirty (30) days of the violation. (B) The appointment and commission of a stamp deputy who fully cures the violation under subdivision (c)(2)(A) of this section shall not be revoked as a result of the violation. (C) A violation that has been cured under this subdivision (c)(2) is not a violation for purposes of subdivision (c)(3) of this section and subsection (d) of this section. (3) (A) If a stamp deputy commits a knowing violation under subdivision (c)(1) of this section, the stamp deputy is subject to the following civil penalties: (i) For a first violation, up to one thousand dollars ($1,000); and (ii) For a second or subsequent violation, up to five thousand dollars ($5,000) per violation. (B) For violations under subdivisions (c)(1)(E)-(H) of this section, each sale constitutes a separate violation. (4) (A) The secretary shall: (i) Promptly remove from the list of stamp deputies maintained under subdivision (b)(6) of this section a stamp deputy whose appointment and commission has been revoked; and (ii) Publish a notice of the termination on the department's website. (B) Beginning ten (10) days following the publication of a notice under subdivision (c)(4)(A) of this section, a person shall not sell cigarettes to or purchase cigarettes from a stamp deputy whose appointment and commission have been revoked. (5) If a stamp deputy whose appointment and commission have been revoked is also the manufacturer of cigarettes, the stamp deputy and its brand families shall be removed from the directory of cigarettes approved for stamping and sale maintained by the Attorney General under § 26-57-1303 . (d) A stamp deputy whose appointment and commission have been revoked under subsection (c) of this section is eligible for reinstatement: (1) Ninety (90) days following revocation for a first violation under subdivisions (c)(1)(A)-(D) of this section that was not knowing; (2) One hundred eighty (180) days following revocation for a second failure under subdivisions (c)(1)(A)-(D) of this section that was not knowing; (3) One (1) year following revocation for a third or subsequent violation under subdivisions (c)(1)(A)-(D) of this section that was not knowing; (4) One (1) year following revocation for a first knowing violation under subdivision (c)(1) of this section; and (5) Three (3) years following revocation for a second or subsequent knowing violation under subdivision (c)(1) of this section. (e) (1) (A) By the fifteenth day of each month, a stamp deputy shall file a report in the form prescribed by the secretary, and the stamp deputy shall certify to the state that the report is complete and accurate. (B) The report required under subdivision (e)(1)(A) of this section shall contain the following information identified by name and number of cigarettes and the manufacturer and brand family of the cigarettes: (i) The total number of cigarettes acquired by the stamp deputy during the month for sale in or into the state and for sale from Arkansas into another state; (ii) The total number of cigarettes sold in or into the state by the stamp deputy during the month; (iii) The total number of cigarettes held in inventory in the state or for sale into the state by the stamp deputy as of the end of the previous month; (iv) The total number of stamps the stamp deputy affixed during the month, including the following: (a) How many of each type of stamp the stamp deputy affixed by number; (b) The total dollar amount of tax paid; and (c) The total number of cigarettes contained in the packages to which the stamp deputy affixed each type of tax stamp; and (v) Any additional information required by the secretary to assist in the enforcement of this chapter, §§ 26-57-260 , 27-57-261 , and 26-57-1301 - 26-57-1308 . (2) In addition to the reports submitted under this section, the stamp deputy shall submit any information required by the secretary, including without limitation the manufacturer, brand family, and number of the cigarettes on which the reports are submitted. (3) The secretary may share the information reported under this section with the taxing authorities or law enforcement authorities of Arkansas or another state or with any other entity permitted by the secretary to aggregate the data. (f) (1) The secretary shall pay a commission to each stamp deputy for the sale of cigarette tax stamps, the affixing of a cigarette tax stamp to each package of cigarettes, and the collection of cigarette taxes. (2) The commission paid under subdivision (f)(1) of this section shall not be less than three percent (3%) of the total aggregate cigarette tax collected by the stamp deputy. (g) (1) All deposits held by a bank for a stamp deputy that represent the sales of stamps are trust funds and shall be held as special deposits. (2) If the bank becomes insolvent, the deposits under subdivision (g)(1) of this section shall be classed and considered as preferred claims of the state. Amended by Act 2019, No. 910,§ 4144, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4143, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4142, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4141, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4140, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4139, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4138, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4137, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4136, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4135, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4134, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4133, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4132, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4131, eff. 7/1/2019. Acts 1977, No. 546, §§ 13, 14; A.S.A. 1947, §§ 84-4513, 84-4514; Acts 1997, No. 1337, § 19; 2009, No. 180, § 2; 2009, No. 542, § 1; 2009, No. 655, § 73; 2011, No. 836, § 7.

(a) The Secretary of the Department of Finance and Administration shall furnish tax stamps to licensed wholesalers through stamp deputies.

(b) (1) The secretary may appoint and commission stamp deputies to handle the stamps and collect the tax on cigarettes before sales of cigarettes are made to the retailers. (2) The secretary shall not appoint and commission a person as a stamp deputy unless the person: (A) Is the owner or officer of a wholesaler licensed under this subchapter; (B) Certifies each calendar quarter on a form prescribed by the secretary that the person has and will comply with the requirements of this subchapter; (C) Consents to the jurisdiction of the state to enforce the requirements of this subchapter and waives any claim of sovereign immunity to the contrary; (D) Provides complete and accurate reports as required by this subchapter; (E) Waives the confidentiality laws necessary to permit the secretary to: (i) Create and make available the list described in subdivision (b)(6) of this section; and (ii) Share information reported under this subchapter and other laws with the taxing authorities or law enforcement authorities of other states or with any other entity permitted by the secretary to aggregate the data; (F) Has furnished a bond in an amount and in the form prescribed by the secretary; and (G) If located outside of the state, has appointed an agent in this state to act as agent for the service of process for the purpose of enforcing this subchapter. (3) An appointment and commission as a stamp deputy by the secretary is effective for one (1) year. (4) A stamp deputy acting within the scope of the stamp deputy's authority is an agent of the secretary and is accountable as such for any wrongful acts. (5) A stamp deputy's open account shall not exceed seventy-five percent (75%) of the total amount of the bond provided by the stamp deputy. (6) (A) The secretary shall list on the website of the Department of Finance and Administration the names of all persons appointed and commissioned as stamp deputies under this section. (B) Manufacturers, importers, and sales entity affiliates are entitled to rely on the list described in subdivision (b)(6)(A) of this section in selling cigarettes.

(1) The secretary may appoint and commission stamp deputies to handle the stamps and collect the tax on cigarettes before sales of cigarettes are made to the retailers.

(2) The secretary shall not appoint and commission a person as a stamp deputy unless the person: (A) Is the owner or officer of a wholesaler licensed under this subchapter; (B) Certifies each calendar quarter on a form prescribed by the secretary that the person has and will comply with the requirements of this subchapter; (C) Consents to the jurisdiction of the state to enforce the requirements of this subchapter and waives any claim of sovereign immunity to the contrary; (D) Provides complete and accurate reports as required by this subchapter; (E) Waives the confidentiality laws necessary to permit the secretary to: (i) Create and make available the list described in subdivision (b)(6) of this section; and (ii) Share information reported under this subchapter and other laws with the taxing authorities or law enforcement authorities of other states or with any other entity permitted by the secretary to aggregate the data; (F) Has furnished a bond in an amount and in the form prescribed by the secretary; and (G) If located outside of the state, has appointed an agent in this state to act as agent for the service of process for the purpose of enforcing this subchapter.

(A) Is the owner or officer of a wholesaler licensed under this subchapter;

(B) Certifies each calendar quarter on a form prescribed by the secretary that the person has and will comply with the requirements of this subchapter;

(C) Consents to the jurisdiction of the state to enforce the requirements of this subchapter and waives any claim of sovereign immunity to the contrary;

(D) Provides complete and accurate reports as required by this subchapter;

(E) Waives the confidentiality laws necessary to permit the secretary to: (i) Create and make available the list described in subdivision (b)(6) of this section; and (ii) Share information reported under this subchapter and other laws with the taxing authorities or law enforcement authorities of other states or with any other entity permitted by the secretary to aggregate the data;

(i) Create and make available the list described in subdivision (b)(6) of this section; and

(ii) Share information reported under this subchapter and other laws with the taxing authorities or law enforcement authorities of other states or with any other entity permitted by the secretary to aggregate the data;

(F) Has furnished a bond in an amount and in the form prescribed by the secretary; and

(G) If located outside of the state, has appointed an agent in this state to act as agent for the service of process for the purpose of enforcing this subchapter.

(3) An appointment and commission as a stamp deputy by the secretary is effective for one (1) year.

(4) A stamp deputy acting within the scope of the stamp deputy's authority is an agent of the secretary and is accountable as such for any wrongful acts.

(5) A stamp deputy's open account shall not exceed seventy-five percent (75%) of the total amount of the bond provided by the stamp deputy.

(6) (A) The secretary shall list on the website of the Department of Finance and Administration the names of all persons appointed and commissioned as stamp deputies under this section. (B) Manufacturers, importers, and sales entity affiliates are entitled to rely on the list described in subdivision (b)(6)(A) of this section in selling cigarettes.

(A) The secretary shall list on the website of the Department of Finance and Administration the names of all persons appointed and commissioned as stamp deputies under this section.

(B) Manufacturers, importers, and sales entity affiliates are entitled to rely on the list described in subdivision (b)(6)(A) of this section in selling cigarettes.

(c) (1) A stamp deputy's appointment and commission are subject to revocation if the stamp deputy: (A) Fails to submit a report required under this subchapter or the Tobacco Products Reporting Act, § 26-57-1401 et seq.; (B) Files an incomplete or inaccurate report or an inaccurate certification; (C) Fails to pay taxes due under this subchapter; (D) Sells cigarettes in or into the state in a package that bears a stamp permitted under this subchapter that is not the correct stamp and provides for a lower level of tax than the correct stamp; (E) Sells unstamped cigarettes in, into, or from the state or possesses unstamped cigarettes in the state except as permitted under this subchapter; (F) Purchases, sells in or into the state, or affixes a tax stamp to a package containing cigarettes of a manufacturer or brand family that is not listed on the directory of cigarettes approved for stamping and sale published by the Attorney General under § 26-57-1303 , or possesses cigarettes described in this subdivision (c)(1)(F) more than twenty-one (21) days after receiving notice that the manufacturer or brand family is not on the state directory, except as otherwise permitted under this subchapter; (G) Purchases or sells cigarettes in violation of this subchapter; or (H) Has his or her appointment and commission or similar license or permit revoked or terminated in any other state based on acts or omissions that would, if done in Arkansas, be grounds for the revocation of the stamp deputy's appointment and commission under this section unless the stamp deputy demonstrates that the revocation or termination in the other state was effected without due process. (2) (A) If a stamp deputy commits a violation under subdivisions (c)(1)(A)-(D) of this section that was not knowing, the stamp deputy is entitled to cure the violation within thirty (30) days of the violation. (B) The appointment and commission of a stamp deputy who fully cures the violation under subdivision (c)(2)(A) of this section shall not be revoked as a result of the violation. (C) A violation that has been cured under this subdivision (c)(2) is not a violation for purposes of subdivision (c)(3) of this section and subsection (d) of this section. (3) (A) If a stamp deputy commits a knowing violation under subdivision (c)(1) of this section, the stamp deputy is subject to the following civil penalties: (i) For a first violation, up to one thousand dollars ($1,000); and (ii) For a second or subsequent violation, up to five thousand dollars ($5,000) per violation. (B) For violations under subdivisions (c)(1)(E)-(H) of this section, each sale constitutes a separate violation. (4) (A) The secretary shall: (i) Promptly remove from the list of stamp deputies maintained under subdivision (b)(6) of this section a stamp deputy whose appointment and commission has been revoked; and (ii) Publish a notice of the termination on the department's website. (B) Beginning ten (10) days following the publication of a notice under subdivision (c)(4)(A) of this section, a person shall not sell cigarettes to or purchase cigarettes from a stamp deputy whose appointment and commission have been revoked. (5) If a stamp deputy whose appointment and commission have been revoked is also the manufacturer of cigarettes, the stamp deputy and its brand families shall be removed from the directory of cigarettes approved for stamping and sale maintained by the Attorney General under § 26-57-1303 .

(1) A stamp deputy's appointment and commission are subject to revocation if the stamp deputy: (A) Fails to submit a report required under this subchapter or the Tobacco Products Reporting Act, § 26-57-1401 et seq.; (B) Files an incomplete or inaccurate report or an inaccurate certification; (C) Fails to pay taxes due under this subchapter; (D) Sells cigarettes in or into the state in a package that bears a stamp permitted under this subchapter that is not the correct stamp and provides for a lower level of tax than the correct stamp; (E) Sells unstamped cigarettes in, into, or from the state or possesses unstamped cigarettes in the state except as permitted under this subchapter; (F) Purchases, sells in or into the state, or affixes a tax stamp to a package containing cigarettes of a manufacturer or brand family that is not listed on the directory of cigarettes approved for stamping and sale published by the Attorney General under § 26-57-1303 , or possesses cigarettes described in this subdivision (c)(1)(F) more than twenty-one (21) days after receiving notice that the manufacturer or brand family is not on the state directory, except as otherwise permitted under this subchapter; (G) Purchases or sells cigarettes in violation of this subchapter; or (H) Has his or her appointment and commission or similar license or permit revoked or terminated in any other state based on acts or omissions that would, if done in Arkansas, be grounds for the revocation of the stamp deputy's appointment and commission under this section unless the stamp deputy demonstrates that the revocation or termination in the other state was effected without due process.

(A) Fails to submit a report required under this subchapter or the Tobacco Products Reporting Act, § 26-57-1401 et seq.;

(B) Files an incomplete or inaccurate report or an inaccurate certification;

(C) Fails to pay taxes due under this subchapter;

(D) Sells cigarettes in or into the state in a package that bears a stamp permitted under this subchapter that is not the correct stamp and provides for a lower level of tax than the correct stamp;

(E) Sells unstamped cigarettes in, into, or from the state or possesses unstamped cigarettes in the state except as permitted under this subchapter;

(F) Purchases, sells in or into the state, or affixes a tax stamp to a package containing cigarettes of a manufacturer or brand family that is not listed on the directory of cigarettes approved for stamping and sale published by the Attorney General under § 26-57-1303 , or possesses cigarettes described in this subdivision (c)(1)(F) more than twenty-one (21) days after receiving notice that the manufacturer or brand family is not on the state directory, except as otherwise permitted under this subchapter;

(G) Purchases or sells cigarettes in violation of this subchapter; or

(H) Has his or her appointment and commission or similar license or permit revoked or terminated in any other state based on acts or omissions that would, if done in Arkansas, be grounds for the revocation of the stamp deputy's appointment and commission under this section unless the stamp deputy demonstrates that the revocation or termination in the other state was effected without due process.

(2) (A) If a stamp deputy commits a violation under subdivisions (c)(1)(A)-(D) of this section that was not knowing, the stamp deputy is entitled to cure the violation within thirty (30) days of the violation. (B) The appointment and commission of a stamp deputy who fully cures the violation under subdivision (c)(2)(A) of this section shall not be revoked as a result of the violation. (C) A violation that has been cured under this subdivision (c)(2) is not a violation for purposes of subdivision (c)(3) of this section and subsection (d) of this section.

(A) If a stamp deputy commits a violation under subdivisions (c)(1)(A)-(D) of this section that was not knowing, the stamp deputy is entitled to cure the violation within thirty (30) days of the violation.

(B) The appointment and commission of a stamp deputy who fully cures the violation under subdivision (c)(2)(A) of this section shall not be revoked as a result of the violation.

(C) A violation that has been cured under this subdivision (c)(2) is not a violation for purposes of subdivision (c)(3) of this section and subsection (d) of this section.

(3) (A) If a stamp deputy commits a knowing violation under subdivision (c)(1) of this section, the stamp deputy is subject to the following civil penalties: (i) For a first violation, up to one thousand dollars ($1,000); and (ii) For a second or subsequent violation, up to five thousand dollars ($5,000) per violation. (B) For violations under subdivisions (c)(1)(E)-(H) of this section, each sale constitutes a separate violation.

(A) If a stamp deputy commits a knowing violation under subdivision (c)(1) of this section, the stamp deputy is subject to the following civil penalties: (i) For a first violation, up to one thousand dollars ($1,000); and (ii) For a second or subsequent violation, up to five thousand dollars ($5,000) per violation.

(i) For a first violation, up to one thousand dollars ($1,000); and

(ii) For a second or subsequent violation, up to five thousand dollars ($5,000) per violation.

(B) For violations under subdivisions (c)(1)(E)-(H) of this section, each sale constitutes a separate violation.

(4) (A) The secretary shall: (i) Promptly remove from the list of stamp deputies maintained under subdivision (b)(6) of this section a stamp deputy whose appointment and commission has been revoked; and (ii) Publish a notice of the termination on the department's website. (B) Beginning ten (10) days following the publication of a notice under subdivision (c)(4)(A) of this section, a person shall not sell cigarettes to or purchase cigarettes from a stamp deputy whose appointment and commission have been revoked.

(A) The secretary shall: (i) Promptly remove from the list of stamp deputies maintained under subdivision (b)(6) of this section a stamp deputy whose appointment and commission has been revoked; and (ii) Publish a notice of the termination on the department's website.

(i) Promptly remove from the list of stamp deputies maintained under subdivision (b)(6) of this section a stamp deputy whose appointment and commission has been revoked; and

(ii) Publish a notice of the termination on the department's website.

(B) Beginning ten (10) days following the publication of a notice under subdivision (c)(4)(A) of this section, a person shall not sell cigarettes to or purchase cigarettes from a stamp deputy whose appointment and commission have been revoked.

(5) If a stamp deputy whose appointment and commission have been revoked is also the manufacturer of cigarettes, the stamp deputy and its brand families shall be removed from the directory of cigarettes approved for stamping and sale maintained by the Attorney General under § 26-57-1303 .

(d) A stamp deputy whose appointment and commission have been revoked under subsection (c) of this section is eligible for reinstatement: (1) Ninety (90) days following revocation for a first violation under subdivisions (c)(1)(A)-(D) of this section that was not knowing; (2) One hundred eighty (180) days following revocation for a second failure under subdivisions (c)(1)(A)-(D) of this section that was not knowing; (3) One (1) year following revocation for a third or subsequent violation under subdivisions (c)(1)(A)-(D) of this section that was not knowing; (4) One (1) year following revocation for a first knowing violation under subdivision (c)(1) of this section; and (5) Three (3) years following revocation for a second or subsequent knowing violation under subdivision (c)(1) of this section.

(1) Ninety (90) days following revocation for a first violation under subdivisions (c)(1)(A)-(D) of this section that was not knowing;

(2) One hundred eighty (180) days following revocation for a second failure under subdivisions (c)(1)(A)-(D) of this section that was not knowing;

(3) One (1) year following revocation for a third or subsequent violation under subdivisions (c)(1)(A)-(D) of this section that was not knowing;

(4) One (1) year following revocation for a first knowing violation under subdivision (c)(1) of this section; and

(5) Three (3) years following revocation for a second or subsequent knowing violation under subdivision (c)(1) of this section.

(e) (1) (A) By the fifteenth day of each month, a stamp deputy shall file a report in the form prescribed by the secretary, and the stamp deputy shall certify to the state that the report is complete and accurate. (B) The report required under subdivision (e)(1)(A) of this section shall contain the following information identified by name and number of cigarettes and the manufacturer and brand family of the cigarettes: (i) The total number of cigarettes acquired by the stamp deputy during the month for sale in or into the state and for sale from Arkansas into another state; (ii) The total number of cigarettes sold in or into the state by the stamp deputy during the month; (iii) The total number of cigarettes held in inventory in the state or for sale into the state by the stamp deputy as of the end of the previous month; (iv) The total number of stamps the stamp deputy affixed during the month, including the following: (a) How many of each type of stamp the stamp deputy affixed by number; (b) The total dollar amount of tax paid; and (c) The total number of cigarettes contained in the packages to which the stamp deputy affixed each type of tax stamp; and (v) Any additional information required by the secretary to assist in the enforcement of this chapter, §§ 26-57-260 , 27-57-261 , and 26-57-1301 - 26-57-1308 . (2) In addition to the reports submitted under this section, the stamp deputy shall submit any information required by the secretary, including without limitation the manufacturer, brand family, and number of the cigarettes on which the reports are submitted. (3) The secretary may share the information reported under this section with the taxing authorities or law enforcement authorities of Arkansas or another state or with any other entity permitted by the secretary to aggregate the data.

(1) (A) By the fifteenth day of each month, a stamp deputy shall file a report in the form prescribed by the secretary, and the stamp deputy shall certify to the state that the report is complete and accurate. (B) The report required under subdivision (e)(1)(A) of this section shall contain the following information identified by name and number of cigarettes and the manufacturer and brand family of the cigarettes: (i) The total number of cigarettes acquired by the stamp deputy during the month for sale in or into the state and for sale from Arkansas into another state; (ii) The total number of cigarettes sold in or into the state by the stamp deputy during the month; (iii) The total number of cigarettes held in inventory in the state or for sale into the state by the stamp deputy as of the end of the previous month; (iv) The total number of stamps the stamp deputy affixed during the month, including the following: (a) How many of each type of stamp the stamp deputy affixed by number; (b) The total dollar amount of tax paid; and (c) The total number of cigarettes contained in the packages to which the stamp deputy affixed each type of tax stamp; and (v) Any additional information required by the secretary to assist in the enforcement of this chapter, §§ 26-57-260 , 27-57-261 , and 26-57-1301 - 26-57-1308 .

(A) By the fifteenth day of each month, a stamp deputy shall file a report in the form prescribed by the secretary, and the stamp deputy shall certify to the state that the report is complete and accurate.

(B) The report required under subdivision (e)(1)(A) of this section shall contain the following information identified by name and number of cigarettes and the manufacturer and brand family of the cigarettes: (i) The total number of cigarettes acquired by the stamp deputy during the month for sale in or into the state and for sale from Arkansas into another state; (ii) The total number of cigarettes sold in or into the state by the stamp deputy during the month; (iii) The total number of cigarettes held in inventory in the state or for sale into the state by the stamp deputy as of the end of the previous month; (iv) The total number of stamps the stamp deputy affixed during the month, including the following: (a) How many of each type of stamp the stamp deputy affixed by number; (b) The total dollar amount of tax paid; and (c) The total number of cigarettes contained in the packages to which the stamp deputy affixed each type of tax stamp; and (v) Any additional information required by the secretary to assist in the enforcement of this chapter, §§ 26-57-260 , 27-57-261 , and 26-57-1301 - 26-57-1308 .

(i) The total number of cigarettes acquired by the stamp deputy during the month for sale in or into the state and for sale from Arkansas into another state;

(ii) The total number of cigarettes sold in or into the state by the stamp deputy during the month;

(iii) The total number of cigarettes held in inventory in the state or for sale into the state by the stamp deputy as of the end of the previous month;

(iv) The total number of stamps the stamp deputy affixed during the month, including the following: (a) How many of each type of stamp the stamp deputy affixed by number; (b) The total dollar amount of tax paid; and (c) The total number of cigarettes contained in the packages to which the stamp deputy affixed each type of tax stamp; and

(a) How many of each type of stamp the stamp deputy affixed by number;

(b) The total dollar amount of tax paid; and

(c) The total number of cigarettes contained in the packages to which the stamp deputy affixed each type of tax stamp; and

(v) Any additional information required by the secretary to assist in the enforcement of this chapter, §§ 26-57-260 , 27-57-261 , and 26-57-1301 - 26-57-1308 .

(2) In addition to the reports submitted under this section, the stamp deputy shall submit any information required by the secretary, including without limitation the manufacturer, brand family, and number of the cigarettes on which the reports are submitted.

(3) The secretary may share the information reported under this section with the taxing authorities or law enforcement authorities of Arkansas or another state or with any other entity permitted by the secretary to aggregate the data.

(f) (1) The secretary shall pay a commission to each stamp deputy for the sale of cigarette tax stamps, the affixing of a cigarette tax stamp to each package of cigarettes, and the collection of cigarette taxes. (2) The commission paid under subdivision (f)(1) of this section shall not be less than three percent (3%) of the total aggregate cigarette tax collected by the stamp deputy.

(1) The secretary shall pay a commission to each stamp deputy for the sale of cigarette tax stamps, the affixing of a cigarette tax stamp to each package of cigarettes, and the collection of cigarette taxes.

(2) The commission paid under subdivision (f)(1) of this section shall not be less than three percent (3%) of the total aggregate cigarette tax collected by the stamp deputy.

(g) (1) All deposits held by a bank for a stamp deputy that represent the sales of stamps are trust funds and shall be held as special deposits. (2) If the bank becomes insolvent, the deposits under subdivision (g)(1) of this section shall be classed and considered as preferred claims of the state.

(1) All deposits held by a bank for a stamp deputy that represent the sales of stamps are trust funds and shall be held as special deposits.

(2) If the bank becomes insolvent, the deposits under subdivision (g)(1) of this section shall be classed and considered as preferred claims of the state.

Amended by Act 2019, No. 910,§ 4144, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4143, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4142, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4141, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4140, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4139, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4138, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4137, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4136, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4135, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4134, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4133, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4132, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4131, eff. 7/1/2019.

Acts 1977, No. 546, §§ 13, 14; A.S.A. 1947, §§ 84-4513, 84-4514; Acts 1997, No. 1337, § 19; 2009, No. 180, § 2; 2009, No. 542, § 1; 2009, No. 655, § 73; 2011, No. 836, § 7.
Ark. Code Ann. § 26-77-103 — AR Code / Title 26 / Chapter 77 / Subchapter 1 / Section 26-77-103
Liability determined from assessment lists
Status: in_force

(a) In ascertaining the persons, firms, individuals, or corporations liable to pay a license for the privilege of engaging in any trade, business, profession, vocation, or calling in any city or town, the city council or board of commissioners may be governed by the list of persons, firms, individuals, or corporations as shown by the latest records of the county assessor of the county where the city or town is situated. (b) In making classifications upon the amount of stock, wares, or merchandise on hand or carried in any business, the council or board may be governed by the latest assessments for personal property on file in the county assessor's office. (c) The council or board shall have the right and power to change, increase, or decrease the amount of the license or the number of persons to pay it according to the change in the county assessor's records made from year to year. Amended by Act 2017, No. 878,§ 19, eff. 8/1/2017. Acts 1917, No. 179, § 3, p. 980; 1919, No. 94, § 3; C. & M. Dig., § 7620; Acts 1937, No. 294, § 3; Pope's Dig., § 9730; A.S.A. 1947, § 19-4603.

(a) In ascertaining the persons, firms, individuals, or corporations liable to pay a license for the privilege of engaging in any trade, business, profession, vocation, or calling in any city or town, the city council or board of commissioners may be governed by the list of persons, firms, individuals, or corporations as shown by the latest records of the county assessor of the county where the city or town is situated.

(b) In making classifications upon the amount of stock, wares, or merchandise on hand or carried in any business, the council or board may be governed by the latest assessments for personal property on file in the county assessor's office.

(c) The council or board shall have the right and power to change, increase, or decrease the amount of the license or the number of persons to pay it according to the change in the county assessor's records made from year to year.

Amended by Act 2017, No. 878,§ 19, eff. 8/1/2017.

Acts 1917, No. 179, § 3, p. 980; 1919, No. 94, § 3; C. & M. Dig., § 7620; Acts 1937, No. 294, § 3; Pope's Dig., § 9730; A.S.A. 1947, § 19-4603.
Ark. Code Ann. § 26-74-214 — AR Code / Title 26 / Chapter 74 / Subchapter 2 / Section 26-74-214
Disposition of funds
Status: in_force

(a) (1) The Secretary of the Department of Finance and Administration shall maintain a record of the total amount of tax collected pursuant to this subchapter and other subchapters authorizing county sales and use taxes in each county and shall deposit all such revenues with the Treasurer of State. (2) (A) Upon receipt of the funds, the Treasurer of State shall deduct three percent (3%) of the funds as a charge by the state for its services as specified in this subchapter and all other subchapters authorizing county sales and use taxes and shall credit the three percent (3%) to the Constitutional Officers Fund and the State Central Services Fund. (B) In addition, the Treasurer of State may retain in the Local Sales and Use Tax Trust Fund an amount not to exceed five percent (5%) of the total amount received from the tax levied by each county, to be used by the Treasurer of State to: (i) Make remittances to the county for rebates made by the county for taxes in excess of amounts specified by the particular county ordinances paid by a taxpayer on a single transaction; (ii) Make refunds for overpayment of the taxes; and (iii) Redeem dishonored checks and drafts received and deposited into the Local Sales and Use Tax Trust Fund. (b) (1) Except as set forth in subsections (f)-(h) of this section, all funds received by the Treasurer of State from the sales tax levied by each county after deducting the three percent (3%) for the Constitutional Officers Fund and the State Central Services Fund shall be deposited into the Local Sales and Use Tax Trust Fund and shall be credited to the account of the county in which it was collected. (2) (A) (i) The Treasurer of State shall monthly transmit to the county treasurer and to the city treasurer of each municipality located in a county levying the tax authorized in this subchapter and all other subchapters authorizing county sales and use taxes their per capita share, if any, of the moneys received by the Treasurer of State from all of the sales taxes levied by the county and credited to the account of the county in the Local Sales and Use Tax Trust Fund. (ii) The county treasurer of any county that has levied a sales tax pursuant to this subchapter and that rebates taxes paid on a single transaction in excess of a specified amount shall monthly certify to the Treasurer of State the total amount of rebates paid since the preceding certification, and the Treasurer of State shall remit that amount to the county treasurer from the Local Sales and Use Tax Trust Fund. (B) (i) If the ballot is silent on the method of distribution, it shall be per capita among the county and each municipality located within the county unless an interlocal agreement is executed between the affected county and its municipalities indicating a different distribution. (ii) If an interlocal agreement is used, a copy of the interlocal agreement shall be furnished to the Treasurer of State and the distribution of the tax shall be as agreed upon in the interlocal agreement. (iii) The ballot shall specify the method of distribution contained in the interlocal agreement if any method of distribution other than a per capita share is to be used. (iv) A copy of the ballot shall be furnished to the Treasurer of State. (c) (1) Funds received by the counties and municipalities pursuant to the provisions of this subchapter may be used by the counties and municipalities for any purpose for which the county general funds or the city general funds may be used, subject to designations set forth in the ballot, if any. (2) (A) The ballot for the tax may provide for distribution to a public entity in the county other than a municipality or a county. (B) In the case of allocations other than to a county or municipality, the Treasurer of State shall transmit funds to the county treasurer, and the county treasurer shall promptly transmit the funds to the designated public entity. (3) If the funds received are as a result of a ballot dedicating all or a portion of a tax to a technical college, community college, two-year college, or satellite campus of a community college for capital improvements or for maintenance and operation, the Treasurer of State shall transmit tax funds for the college to the county treasurer, and the county treasurer shall promptly transmit the funds to the college for which the tax was approved. (d) The Treasurer of State may make refunds for overpayment of the county sales tax and redeem dishonored checks and drafts issued in payment of the county sales tax from the Local Sales and Use Tax Trust Fund. (e) (1) When any tax adopted by a county pursuant to this subchapter is abolished, the secretary shall retain in the account of that county in the Local Sales and Use Tax Trust Fund for a period of one (1) year an amount equal to five percent (5%) of the final remittance to the county and municipalities in the county at the time of termination of the collection of the tax to: (A) Cover possible rebates by the county; (B) Cover refunds for overpayment of taxes; and (C) Redeem dishonored checks and drafts deposited to the credit of the Local Sales and Use Tax Trust Fund. (2) After one (1) year has elapsed after the effective date of the abolition of the tax in any county, the secretary shall transfer the balance in that county's account to the county and municipalities in the county and shall close the account. (f) (1) As indicated by a certified copy of an ordinance of the quorum court of the county previously filed with the secretary and the Treasurer of State, any moneys collected that are pledged to secure lease rentals or the payment of bonds authorized by this subchapter shall not be deposited into the State Treasury but shall be deposited by the Treasurer of State into a bank or banks designated by the county, as cash funds, and transmitted to the county subject to the charges payable and retainage authorized in this section. (2) Charges deducted shall be transmitted to the Treasurer of State, and amounts retained shall be retained by the secretary as cash funds. (g) (1) Except for revenue collected under subdivision (g)(2) of this section, money collected that is derived from a tax on aviation fuel levied by a county where a regional airport as described by the Regional Airport Act, § 14-362-101 et seq., is located shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the regional airport located within the levying county and transmitted to the regional airport, subject to the charges by the state for its services as specified in this section. (2) Revenue derived from a tax on aviation fuel in effect on December 30, 1987, is not subject to this section. (h) Money collected that is derived from a tax on aviation fuel levied by a county that is not dedicated to a specific purpose and may legally be used for any lawful purpose shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the county and transmitted directly to the publicly owned airport where the aviation fuel was sold, subject to the charges by the state for its services as specified in this section. Amended by Act 2019, No. 910,§ 4376, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4375, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4374, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4373, eff. 7/1/2019. Acts 1981 (1st Ex. Sess.), No. 26, § 11; 1983, No. 723, § 3; A.S.A. 1947, § 17-2031; Acts 1989 (3rd Ex. Sess.), No. 61, § 1; 1997, No. 1176, § 4; 1999, No. 1478, § 2; 2003, No. 64, § 1; 2007, No. 166, § 2; 2009, No. 840, §§ 1, 2.

(a) (1) The Secretary of the Department of Finance and Administration shall maintain a record of the total amount of tax collected pursuant to this subchapter and other subchapters authorizing county sales and use taxes in each county and shall deposit all such revenues with the Treasurer of State. (2) (A) Upon receipt of the funds, the Treasurer of State shall deduct three percent (3%) of the funds as a charge by the state for its services as specified in this subchapter and all other subchapters authorizing county sales and use taxes and shall credit the three percent (3%) to the Constitutional Officers Fund and the State Central Services Fund. (B) In addition, the Treasurer of State may retain in the Local Sales and Use Tax Trust Fund an amount not to exceed five percent (5%) of the total amount received from the tax levied by each county, to be used by the Treasurer of State to: (i) Make remittances to the county for rebates made by the county for taxes in excess of amounts specified by the particular county ordinances paid by a taxpayer on a single transaction; (ii) Make refunds for overpayment of the taxes; and (iii) Redeem dishonored checks and drafts received and deposited into the Local Sales and Use Tax Trust Fund.

(1) The Secretary of the Department of Finance and Administration shall maintain a record of the total amount of tax collected pursuant to this subchapter and other subchapters authorizing county sales and use taxes in each county and shall deposit all such revenues with the Treasurer of State.

(2) (A) Upon receipt of the funds, the Treasurer of State shall deduct three percent (3%) of the funds as a charge by the state for its services as specified in this subchapter and all other subchapters authorizing county sales and use taxes and shall credit the three percent (3%) to the Constitutional Officers Fund and the State Central Services Fund. (B) In addition, the Treasurer of State may retain in the Local Sales and Use Tax Trust Fund an amount not to exceed five percent (5%) of the total amount received from the tax levied by each county, to be used by the Treasurer of State to: (i) Make remittances to the county for rebates made by the county for taxes in excess of amounts specified by the particular county ordinances paid by a taxpayer on a single transaction; (ii) Make refunds for overpayment of the taxes; and (iii) Redeem dishonored checks and drafts received and deposited into the Local Sales and Use Tax Trust Fund.

(A) Upon receipt of the funds, the Treasurer of State shall deduct three percent (3%) of the funds as a charge by the state for its services as specified in this subchapter and all other subchapters authorizing county sales and use taxes and shall credit the three percent (3%) to the Constitutional Officers Fund and the State Central Services Fund.

(B) In addition, the Treasurer of State may retain in the Local Sales and Use Tax Trust Fund an amount not to exceed five percent (5%) of the total amount received from the tax levied by each county, to be used by the Treasurer of State to: (i) Make remittances to the county for rebates made by the county for taxes in excess of amounts specified by the particular county ordinances paid by a taxpayer on a single transaction; (ii) Make refunds for overpayment of the taxes; and (iii) Redeem dishonored checks and drafts received and deposited into the Local Sales and Use Tax Trust Fund.

(i) Make remittances to the county for rebates made by the county for taxes in excess of amounts specified by the particular county ordinances paid by a taxpayer on a single transaction;

(ii) Make refunds for overpayment of the taxes; and

(iii) Redeem dishonored checks and drafts received and deposited into the Local Sales and Use Tax Trust Fund.

(b) (1) Except as set forth in subsections (f)-(h) of this section, all funds received by the Treasurer of State from the sales tax levied by each county after deducting the three percent (3%) for the Constitutional Officers Fund and the State Central Services Fund shall be deposited into the Local Sales and Use Tax Trust Fund and shall be credited to the account of the county in which it was collected. (2) (A) (i) The Treasurer of State shall monthly transmit to the county treasurer and to the city treasurer of each municipality located in a county levying the tax authorized in this subchapter and all other subchapters authorizing county sales and use taxes their per capita share, if any, of the moneys received by the Treasurer of State from all of the sales taxes levied by the county and credited to the account of the county in the Local Sales and Use Tax Trust Fund. (ii) The county treasurer of any county that has levied a sales tax pursuant to this subchapter and that rebates taxes paid on a single transaction in excess of a specified amount shall monthly certify to the Treasurer of State the total amount of rebates paid since the preceding certification, and the Treasurer of State shall remit that amount to the county treasurer from the Local Sales and Use Tax Trust Fund. (B) (i) If the ballot is silent on the method of distribution, it shall be per capita among the county and each municipality located within the county unless an interlocal agreement is executed between the affected county and its municipalities indicating a different distribution. (ii) If an interlocal agreement is used, a copy of the interlocal agreement shall be furnished to the Treasurer of State and the distribution of the tax shall be as agreed upon in the interlocal agreement. (iii) The ballot shall specify the method of distribution contained in the interlocal agreement if any method of distribution other than a per capita share is to be used. (iv) A copy of the ballot shall be furnished to the Treasurer of State.

(1) Except as set forth in subsections (f)-(h) of this section, all funds received by the Treasurer of State from the sales tax levied by each county after deducting the three percent (3%) for the Constitutional Officers Fund and the State Central Services Fund shall be deposited into the Local Sales and Use Tax Trust Fund and shall be credited to the account of the county in which it was collected.

(2) (A) (i) The Treasurer of State shall monthly transmit to the county treasurer and to the city treasurer of each municipality located in a county levying the tax authorized in this subchapter and all other subchapters authorizing county sales and use taxes their per capita share, if any, of the moneys received by the Treasurer of State from all of the sales taxes levied by the county and credited to the account of the county in the Local Sales and Use Tax Trust Fund. (ii) The county treasurer of any county that has levied a sales tax pursuant to this subchapter and that rebates taxes paid on a single transaction in excess of a specified amount shall monthly certify to the Treasurer of State the total amount of rebates paid since the preceding certification, and the Treasurer of State shall remit that amount to the county treasurer from the Local Sales and Use Tax Trust Fund. (B) (i) If the ballot is silent on the method of distribution, it shall be per capita among the county and each municipality located within the county unless an interlocal agreement is executed between the affected county and its municipalities indicating a different distribution. (ii) If an interlocal agreement is used, a copy of the interlocal agreement shall be furnished to the Treasurer of State and the distribution of the tax shall be as agreed upon in the interlocal agreement. (iii) The ballot shall specify the method of distribution contained in the interlocal agreement if any method of distribution other than a per capita share is to be used. (iv) A copy of the ballot shall be furnished to the Treasurer of State.

(A) (i) The Treasurer of State shall monthly transmit to the county treasurer and to the city treasurer of each municipality located in a county levying the tax authorized in this subchapter and all other subchapters authorizing county sales and use taxes their per capita share, if any, of the moneys received by the Treasurer of State from all of the sales taxes levied by the county and credited to the account of the county in the Local Sales and Use Tax Trust Fund. (ii) The county treasurer of any county that has levied a sales tax pursuant to this subchapter and that rebates taxes paid on a single transaction in excess of a specified amount shall monthly certify to the Treasurer of State the total amount of rebates paid since the preceding certification, and the Treasurer of State shall remit that amount to the county treasurer from the Local Sales and Use Tax Trust Fund.

(i) The Treasurer of State shall monthly transmit to the county treasurer and to the city treasurer of each municipality located in a county levying the tax authorized in this subchapter and all other subchapters authorizing county sales and use taxes their per capita share, if any, of the moneys received by the Treasurer of State from all of the sales taxes levied by the county and credited to the account of the county in the Local Sales and Use Tax Trust Fund.

(ii) The county treasurer of any county that has levied a sales tax pursuant to this subchapter and that rebates taxes paid on a single transaction in excess of a specified amount shall monthly certify to the Treasurer of State the total amount of rebates paid since the preceding certification, and the Treasurer of State shall remit that amount to the county treasurer from the Local Sales and Use Tax Trust Fund.

(B) (i) If the ballot is silent on the method of distribution, it shall be per capita among the county and each municipality located within the county unless an interlocal agreement is executed between the affected county and its municipalities indicating a different distribution. (ii) If an interlocal agreement is used, a copy of the interlocal agreement shall be furnished to the Treasurer of State and the distribution of the tax shall be as agreed upon in the interlocal agreement. (iii) The ballot shall specify the method of distribution contained in the interlocal agreement if any method of distribution other than a per capita share is to be used. (iv) A copy of the ballot shall be furnished to the Treasurer of State.

(i) If the ballot is silent on the method of distribution, it shall be per capita among the county and each municipality located within the county unless an interlocal agreement is executed between the affected county and its municipalities indicating a different distribution.

(ii) If an interlocal agreement is used, a copy of the interlocal agreement shall be furnished to the Treasurer of State and the distribution of the tax shall be as agreed upon in the interlocal agreement.

(iii) The ballot shall specify the method of distribution contained in the interlocal agreement if any method of distribution other than a per capita share is to be used.

(iv) A copy of the ballot shall be furnished to the Treasurer of State.

(c) (1) Funds received by the counties and municipalities pursuant to the provisions of this subchapter may be used by the counties and municipalities for any purpose for which the county general funds or the city general funds may be used, subject to designations set forth in the ballot, if any. (2) (A) The ballot for the tax may provide for distribution to a public entity in the county other than a municipality or a county. (B) In the case of allocations other than to a county or municipality, the Treasurer of State shall transmit funds to the county treasurer, and the county treasurer shall promptly transmit the funds to the designated public entity. (3) If the funds received are as a result of a ballot dedicating all or a portion of a tax to a technical college, community college, two-year college, or satellite campus of a community college for capital improvements or for maintenance and operation, the Treasurer of State shall transmit tax funds for the college to the county treasurer, and the county treasurer shall promptly transmit the funds to the college for which the tax was approved.

(1) Funds received by the counties and municipalities pursuant to the provisions of this subchapter may be used by the counties and municipalities for any purpose for which the county general funds or the city general funds may be used, subject to designations set forth in the ballot, if any.

(2) (A) The ballot for the tax may provide for distribution to a public entity in the county other than a municipality or a county. (B) In the case of allocations other than to a county or municipality, the Treasurer of State shall transmit funds to the county treasurer, and the county treasurer shall promptly transmit the funds to the designated public entity.

(A) The ballot for the tax may provide for distribution to a public entity in the county other than a municipality or a county.

(B) In the case of allocations other than to a county or municipality, the Treasurer of State shall transmit funds to the county treasurer, and the county treasurer shall promptly transmit the funds to the designated public entity.

(3) If the funds received are as a result of a ballot dedicating all or a portion of a tax to a technical college, community college, two-year college, or satellite campus of a community college for capital improvements or for maintenance and operation, the Treasurer of State shall transmit tax funds for the college to the county treasurer, and the county treasurer shall promptly transmit the funds to the college for which the tax was approved.

(d) The Treasurer of State may make refunds for overpayment of the county sales tax and redeem dishonored checks and drafts issued in payment of the county sales tax from the Local Sales and Use Tax Trust Fund.

(e) (1) When any tax adopted by a county pursuant to this subchapter is abolished, the secretary shall retain in the account of that county in the Local Sales and Use Tax Trust Fund for a period of one (1) year an amount equal to five percent (5%) of the final remittance to the county and municipalities in the county at the time of termination of the collection of the tax to: (A) Cover possible rebates by the county; (B) Cover refunds for overpayment of taxes; and (C) Redeem dishonored checks and drafts deposited to the credit of the Local Sales and Use Tax Trust Fund. (2) After one (1) year has elapsed after the effective date of the abolition of the tax in any county, the secretary shall transfer the balance in that county's account to the county and municipalities in the county and shall close the account.

(1) When any tax adopted by a county pursuant to this subchapter is abolished, the secretary shall retain in the account of that county in the Local Sales and Use Tax Trust Fund for a period of one (1) year an amount equal to five percent (5%) of the final remittance to the county and municipalities in the county at the time of termination of the collection of the tax to: (A) Cover possible rebates by the county; (B) Cover refunds for overpayment of taxes; and (C) Redeem dishonored checks and drafts deposited to the credit of the Local Sales and Use Tax Trust Fund.

(A) Cover possible rebates by the county;

(B) Cover refunds for overpayment of taxes; and

(C) Redeem dishonored checks and drafts deposited to the credit of the Local Sales and Use Tax Trust Fund.

(2) After one (1) year has elapsed after the effective date of the abolition of the tax in any county, the secretary shall transfer the balance in that county's account to the county and municipalities in the county and shall close the account.

(f) (1) As indicated by a certified copy of an ordinance of the quorum court of the county previously filed with the secretary and the Treasurer of State, any moneys collected that are pledged to secure lease rentals or the payment of bonds authorized by this subchapter shall not be deposited into the State Treasury but shall be deposited by the Treasurer of State into a bank or banks designated by the county, as cash funds, and transmitted to the county subject to the charges payable and retainage authorized in this section. (2) Charges deducted shall be transmitted to the Treasurer of State, and amounts retained shall be retained by the secretary as cash funds.

(1) As indicated by a certified copy of an ordinance of the quorum court of the county previously filed with the secretary and the Treasurer of State, any moneys collected that are pledged to secure lease rentals or the payment of bonds authorized by this subchapter shall not be deposited into the State Treasury but shall be deposited by the Treasurer of State into a bank or banks designated by the county, as cash funds, and transmitted to the county subject to the charges payable and retainage authorized in this section.

(2) Charges deducted shall be transmitted to the Treasurer of State, and amounts retained shall be retained by the secretary as cash funds.

(g) (1) Except for revenue collected under subdivision (g)(2) of this section, money collected that is derived from a tax on aviation fuel levied by a county where a regional airport as described by the Regional Airport Act, § 14-362-101 et seq., is located shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the regional airport located within the levying county and transmitted to the regional airport, subject to the charges by the state for its services as specified in this section. (2) Revenue derived from a tax on aviation fuel in effect on December 30, 1987, is not subject to this section.

(1) Except for revenue collected under subdivision (g)(2) of this section, money collected that is derived from a tax on aviation fuel levied by a county where a regional airport as described by the Regional Airport Act, § 14-362-101 et seq., is located shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the regional airport located within the levying county and transmitted to the regional airport, subject to the charges by the state for its services as specified in this section.

(2) Revenue derived from a tax on aviation fuel in effect on December 30, 1987, is not subject to this section.

(h) Money collected that is derived from a tax on aviation fuel levied by a county that is not dedicated to a specific purpose and may legally be used for any lawful purpose shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the county and transmitted directly to the publicly owned airport where the aviation fuel was sold, subject to the charges by the state for its services as specified in this section.

Amended by Act 2019, No. 910,§ 4376, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4375, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4374, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4373, eff. 7/1/2019.

Acts 1981 (1st Ex. Sess.), No. 26, § 11; 1983, No. 723, § 3; A.S.A. 1947, § 17-2031; Acts 1989 (3rd Ex. Sess.), No. 61, § 1; 1997, No. 1176, § 4; 1999, No. 1478, § 2; 2003, No. 64, § 1; 2007, No. 166, § 2; 2009, No. 840, §§ 1, 2.
Ark. Code Ann. § 26-51-1215 — AR Code / Title 26 / Chapter 51 / Subchapter 12 / Section 26-51-1215
Tax credit for waste reduction, reuse, or recycling equipment - Definition
Status: in_force

(a) As used in this section, "waste reduction, reuse, or recycling equipment" means the same as defined in § 26-51-506 except that it also includes production, processing, and testing equipment used to manufacture products containing recovered materials. (b) To be eligible for the income tax credit allowed under this section, a taxpayer shall: (1) Be a qualified manufacturer of steel as defined in § 26-51-1211 , § 26-52-901 , § 26-52-911 , Acts 2013, No. 1084, or Acts 2013, No. 1476; (2) Have made the minimum investment required under § 26-51-1212 , § 26-52-902 , § 26-52-912 , Acts 2013, No. 1084, or Acts 2013, No. 1476; and (3) Either: (A) Have obtained a certification under § 26-51-1212 , § 26-52-902 , § 26-52-912 , Acts 2013, No. 1084, or Acts 2013, No. 1476; or (B) Be located on the same or an adjacent manufacturing site as a qualified manufacturer of steel that has obtained such a certification. (c) (1) A qualified manufacturer of steel that qualifies for the income tax credit for the purchase of waste reduction, reuse, or recycling equipment under § 26-51-506 may carry forward any unused income tax credit earned under § 26-51-506 for a period of fourteen (14) consecutive years following the taxable year in which the income tax credit originated. (2) Acts 2013, No. 1084, § 5(b) and § 7(a)(1)(B), and Acts 2013, No. 1476, shall continue to apply to the carry forward period for qualified manufacturers of steel certified under those acts. (3) Income tax credits that would otherwise expire during the carry forward period shall be claimed first. (d) To claim the benefits of § 26-51-506 , a qualified manufacturer of steel shall either: (1) Meet the requirements of § 26-51-506(d) ; or (2) Obtain a certification from the Director of the Division of Environmental Quality certifying to the Revenue Division of the Department of Finance and Administration that: (A) The qualified manufacturer of steel is engaged in the business of reducing, reusing, or recycling solid waste material for commercial purposes, whether or not for profit; (B) The machinery or equipment purchased is waste reduction, reuse, or recycling equipment; (C) The machinery or equipment is being used in the collection, separation, processing, modification, conversion, treatment, or manufacturing of products containing at least twenty-five percent (25%) postconsumer waste; and (D) The qualified manufacturer of steel has filed a statement with the director acknowledging that the qualified manufacturer of steel will make a good faith effort to utilize Arkansas postconsumer waste as a part of the materials used. (e) (1) Except as provided in subdivision (e)(2) of this section, § 26-51-506(f) does not apply to a qualified manufacturer of steel meeting the requirements of this section. (2) A qualified manufacturer of steel shall refund the amount required under subdivision (e)(3) of this section if within three (3) years of the taxable year in which the credit originated: (A) (i) The waste reduction, reuse, or recycling equipment is removed from Arkansas, disposed of, or transferred to another person, or the qualified manufacturer of steel otherwise ceases to use the required materials or operate in accordance with § 26-51-506 or this section. (ii) Reorganization transactions, changes of ownership and control, and sales and transfers of waste reduction, reuse, or recycling equipment among affiliates that do not constitute sales or transfers to a third-party purchaser are not disposals, transfers, or cessations of use for purposes of § 26-51-506 or this section; or (B) The director finds that the qualified manufacturer of steel has operated the waste reduction, reuse, or recycling equipment in a manner that demonstrates a pattern of intentional failure to comply with final administrative or judicial orders that clearly indicates a disregard for environmental regulation. (3) If a qualified manufacturer of steel is required to make a refund under subdivision (e)(2) of this section, the qualified manufacturer of steel shall refund the amount of the allowed income tax credit claimed by the qualified manufacturer of steel that exceeds the following amounts: (A) Within the first taxable year, zero dollars ($0.00); (B) Within the second taxable year, an amount equal to thirty-three percent (33%) of the amount of credit allowed; and (C) Within the third taxable year, an amount equal to sixty-seven percent (67%) of the credit allowed. (4) A refund required under subdivision (e)(2)(A) of this section applies only to the credit given for the particular waste reduction, reuse, or recycling equipment to which subdivision (e)(2)(A) of this section applies. (5) A qualified manufacturer of steel that is required to refund part of an income tax credit under this section shall no longer be eligible to carry forward any amount of the income tax credit that had not been used as of the date the refund is required. (f) A qualified manufacturer of steel aggrieved by a decision of the director under this section may appeal to the Arkansas Pollution Control and Ecology Commission through administrative procedures adopted by the commission and to the courts in the manner provided in §§ 8-4-222 - 8-4-229 . (g) Acts 2013, No. 1084, and Acts 2013, No. 1476, continue in full force and effect and are not amended or limited by this section. (h) This section applies only to income tax credits certified on or after January 1, 2015. Amended by Act 2019, No. 910,§ 3260, eff. 7/1/2019. Added by Act 2015, No. 692,§ 2, eff. 7/22/2015.

(a) As used in this section, "waste reduction, reuse, or recycling equipment" means the same as defined in § 26-51-506 except that it also includes production, processing, and testing equipment used to manufacture products containing recovered materials.

(b) To be eligible for the income tax credit allowed under this section, a taxpayer shall: (1) Be a qualified manufacturer of steel as defined in § 26-51-1211 , § 26-52-901 , § 26-52-911 , Acts 2013, No. 1084, or Acts 2013, No. 1476; (2) Have made the minimum investment required under § 26-51-1212 , § 26-52-902 , § 26-52-912 , Acts 2013, No. 1084, or Acts 2013, No. 1476; and (3) Either: (A) Have obtained a certification under § 26-51-1212 , § 26-52-902 , § 26-52-912 , Acts 2013, No. 1084, or Acts 2013, No. 1476; or (B) Be located on the same or an adjacent manufacturing site as a qualified manufacturer of steel that has obtained such a certification.

(1) Be a qualified manufacturer of steel as defined in § 26-51-1211 , § 26-52-901 , § 26-52-911 , Acts 2013, No. 1084, or Acts 2013, No. 1476;

(2) Have made the minimum investment required under § 26-51-1212 , § 26-52-902 , § 26-52-912 , Acts 2013, No. 1084, or Acts 2013, No. 1476; and

(3) Either: (A) Have obtained a certification under § 26-51-1212 , § 26-52-902 , § 26-52-912 , Acts 2013, No. 1084, or Acts 2013, No. 1476; or (B) Be located on the same or an adjacent manufacturing site as a qualified manufacturer of steel that has obtained such a certification.

(A) Have obtained a certification under § 26-51-1212 , § 26-52-902 , § 26-52-912 , Acts 2013, No. 1084, or Acts 2013, No. 1476; or

(B) Be located on the same or an adjacent manufacturing site as a qualified manufacturer of steel that has obtained such a certification.

(c) (1) A qualified manufacturer of steel that qualifies for the income tax credit for the purchase of waste reduction, reuse, or recycling equipment under § 26-51-506 may carry forward any unused income tax credit earned under § 26-51-506 for a period of fourteen (14) consecutive years following the taxable year in which the income tax credit originated. (2) Acts 2013, No. 1084, § 5(b) and § 7(a)(1)(B), and Acts 2013, No. 1476, shall continue to apply to the carry forward period for qualified manufacturers of steel certified under those acts. (3) Income tax credits that would otherwise expire during the carry forward period shall be claimed first.

(1) A qualified manufacturer of steel that qualifies for the income tax credit for the purchase of waste reduction, reuse, or recycling equipment under § 26-51-506 may carry forward any unused income tax credit earned under § 26-51-506 for a period of fourteen (14) consecutive years following the taxable year in which the income tax credit originated.

(2) Acts 2013, No. 1084, § 5(b) and § 7(a)(1)(B), and Acts 2013, No. 1476, shall continue to apply to the carry forward period for qualified manufacturers of steel certified under those acts.

(3) Income tax credits that would otherwise expire during the carry forward period shall be claimed first.

(d) To claim the benefits of § 26-51-506 , a qualified manufacturer of steel shall either: (1) Meet the requirements of § 26-51-506(d) ; or (2) Obtain a certification from the Director of the Division of Environmental Quality certifying to the Revenue Division of the Department of Finance and Administration that: (A) The qualified manufacturer of steel is engaged in the business of reducing, reusing, or recycling solid waste material for commercial purposes, whether or not for profit; (B) The machinery or equipment purchased is waste reduction, reuse, or recycling equipment; (C) The machinery or equipment is being used in the collection, separation, processing, modification, conversion, treatment, or manufacturing of products containing at least twenty-five percent (25%) postconsumer waste; and (D) The qualified manufacturer of steel has filed a statement with the director acknowledging that the qualified manufacturer of steel will make a good faith effort to utilize Arkansas postconsumer waste as a part of the materials used.

(1) Meet the requirements of § 26-51-506(d) ; or

(2) Obtain a certification from the Director of the Division of Environmental Quality certifying to the Revenue Division of the Department of Finance and Administration that: (A) The qualified manufacturer of steel is engaged in the business of reducing, reusing, or recycling solid waste material for commercial purposes, whether or not for profit; (B) The machinery or equipment purchased is waste reduction, reuse, or recycling equipment; (C) The machinery or equipment is being used in the collection, separation, processing, modification, conversion, treatment, or manufacturing of products containing at least twenty-five percent (25%) postconsumer waste; and (D) The qualified manufacturer of steel has filed a statement with the director acknowledging that the qualified manufacturer of steel will make a good faith effort to utilize Arkansas postconsumer waste as a part of the materials used.

(A) The qualified manufacturer of steel is engaged in the business of reducing, reusing, or recycling solid waste material for commercial purposes, whether or not for profit;

(B) The machinery or equipment purchased is waste reduction, reuse, or recycling equipment;

(C) The machinery or equipment is being used in the collection, separation, processing, modification, conversion, treatment, or manufacturing of products containing at least twenty-five percent (25%) postconsumer waste; and

(D) The qualified manufacturer of steel has filed a statement with the director acknowledging that the qualified manufacturer of steel will make a good faith effort to utilize Arkansas postconsumer waste as a part of the materials used.

(e) (1) Except as provided in subdivision (e)(2) of this section, § 26-51-506(f) does not apply to a qualified manufacturer of steel meeting the requirements of this section. (2) A qualified manufacturer of steel shall refund the amount required under subdivision (e)(3) of this section if within three (3) years of the taxable year in which the credit originated: (A) (i) The waste reduction, reuse, or recycling equipment is removed from Arkansas, disposed of, or transferred to another person, or the qualified manufacturer of steel otherwise ceases to use the required materials or operate in accordance with § 26-51-506 or this section. (ii) Reorganization transactions, changes of ownership and control, and sales and transfers of waste reduction, reuse, or recycling equipment among affiliates that do not constitute sales or transfers to a third-party purchaser are not disposals, transfers, or cessations of use for purposes of § 26-51-506 or this section; or (B) The director finds that the qualified manufacturer of steel has operated the waste reduction, reuse, or recycling equipment in a manner that demonstrates a pattern of intentional failure to comply with final administrative or judicial orders that clearly indicates a disregard for environmental regulation. (3) If a qualified manufacturer of steel is required to make a refund under subdivision (e)(2) of this section, the qualified manufacturer of steel shall refund the amount of the allowed income tax credit claimed by the qualified manufacturer of steel that exceeds the following amounts: (A) Within the first taxable year, zero dollars ($0.00); (B) Within the second taxable year, an amount equal to thirty-three percent (33%) of the amount of credit allowed; and (C) Within the third taxable year, an amount equal to sixty-seven percent (67%) of the credit allowed. (4) A refund required under subdivision (e)(2)(A) of this section applies only to the credit given for the particular waste reduction, reuse, or recycling equipment to which subdivision (e)(2)(A) of this section applies. (5) A qualified manufacturer of steel that is required to refund part of an income tax credit under this section shall no longer be eligible to carry forward any amount of the income tax credit that had not been used as of the date the refund is required.

(1) Except as provided in subdivision (e)(2) of this section, § 26-51-506(f) does not apply to a qualified manufacturer of steel meeting the requirements of this section.

(2) A qualified manufacturer of steel shall refund the amount required under subdivision (e)(3) of this section if within three (3) years of the taxable year in which the credit originated: (A) (i) The waste reduction, reuse, or recycling equipment is removed from Arkansas, disposed of, or transferred to another person, or the qualified manufacturer of steel otherwise ceases to use the required materials or operate in accordance with § 26-51-506 or this section. (ii) Reorganization transactions, changes of ownership and control, and sales and transfers of waste reduction, reuse, or recycling equipment among affiliates that do not constitute sales or transfers to a third-party purchaser are not disposals, transfers, or cessations of use for purposes of § 26-51-506 or this section; or (B) The director finds that the qualified manufacturer of steel has operated the waste reduction, reuse, or recycling equipment in a manner that demonstrates a pattern of intentional failure to comply with final administrative or judicial orders that clearly indicates a disregard for environmental regulation.

(A) (i) The waste reduction, reuse, or recycling equipment is removed from Arkansas, disposed of, or transferred to another person, or the qualified manufacturer of steel otherwise ceases to use the required materials or operate in accordance with § 26-51-506 or this section. (ii) Reorganization transactions, changes of ownership and control, and sales and transfers of waste reduction, reuse, or recycling equipment among affiliates that do not constitute sales or transfers to a third-party purchaser are not disposals, transfers, or cessations of use for purposes of § 26-51-506 or this section; or

(i) The waste reduction, reuse, or recycling equipment is removed from Arkansas, disposed of, or transferred to another person, or the qualified manufacturer of steel otherwise ceases to use the required materials or operate in accordance with § 26-51-506 or this section.

(ii) Reorganization transactions, changes of ownership and control, and sales and transfers of waste reduction, reuse, or recycling equipment among affiliates that do not constitute sales or transfers to a third-party purchaser are not disposals, transfers, or cessations of use for purposes of § 26-51-506 or this section; or

(B) The director finds that the qualified manufacturer of steel has operated the waste reduction, reuse, or recycling equipment in a manner that demonstrates a pattern of intentional failure to comply with final administrative or judicial orders that clearly indicates a disregard for environmental regulation.

(3) If a qualified manufacturer of steel is required to make a refund under subdivision (e)(2) of this section, the qualified manufacturer of steel shall refund the amount of the allowed income tax credit claimed by the qualified manufacturer of steel that exceeds the following amounts: (A) Within the first taxable year, zero dollars ($0.00); (B) Within the second taxable year, an amount equal to thirty-three percent (33%) of the amount of credit allowed; and (C) Within the third taxable year, an amount equal to sixty-seven percent (67%) of the credit allowed.

(A) Within the first taxable year, zero dollars ($0.00);

(B) Within the second taxable year, an amount equal to thirty-three percent (33%) of the amount of credit allowed; and

(C) Within the third taxable year, an amount equal to sixty-seven percent (67%) of the credit allowed.

(4) A refund required under subdivision (e)(2)(A) of this section applies only to the credit given for the particular waste reduction, reuse, or recycling equipment to which subdivision (e)(2)(A) of this section applies.

(5) A qualified manufacturer of steel that is required to refund part of an income tax credit under this section shall no longer be eligible to carry forward any amount of the income tax credit that had not been used as of the date the refund is required.

(f) A qualified manufacturer of steel aggrieved by a decision of the director under this section may appeal to the Arkansas Pollution Control and Ecology Commission through administrative procedures adopted by the commission and to the courts in the manner provided in §§ 8-4-222 - 8-4-229 .

(g) Acts 2013, No. 1084, and Acts 2013, No. 1476, continue in full force and effect and are not amended or limited by this section.

(h) This section applies only to income tax credits certified on or after January 1, 2015.

Amended by Act 2019, No. 910,§ 3260, eff. 7/1/2019.

Added by Act 2015, No. 692,§ 2, eff. 7/22/2015.