Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 5 - STATE TAXES (§§ 26-50-101 — 26-65-108) › Chapter 57 - STATE PRIVILEGE TAXES (§§ 26-57-201 — 26-57-1605) › Subchapter 2 - ARKANSAS TOBACCO PRODUCTS TAX ACT OF 1977 (§§ 26-57-201 — 26-57-268) › Section 26-57-260 - Definitions

As used in this section and §
26-57-261
:
(1)
"Adjusted for inflation" means increased in accordance with the formula for inflation adjustment set forth in Exhibit C to the Master Settlement Agreement;
(2)
(A)
"Affiliate" means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with another person.
(B)
Solely for the purposes of the definition of "affiliate", the term:
(i)
"Owns", "is owned", and "ownership" mean ownership of an equity interest, or the equivalent thereof, of ten percent (10%) or more; and
(ii)
"Person" means an individual, partnership, committee, association, corporation, or any other organization or group of persons;
(3)
"Allocable share" means the allocable share as that term is defined in the Master Settlement Agreement;
(4)
(A)
"Cigarette" means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains:
(i)
Any roll of tobacco wrapped in paper or in any substance not containing tobacco;
(ii)
Tobacco in any form that is functional in the product which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to or purchased by consumers as a cigarette; or
(iii)
Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to or purchased by consumers as a cigarette described in subdivision (4)(A)(i) of this section.
(B)
"Cigarette" includes "roll-your-own", that is, any tobacco which, because of its appearance, type, packaging, or labeling is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes.
(C)
For purposes of this definition of "cigarette", nine-hundredths of an ounce (0.09 oz.) of roll-your-own tobacco shall constitute one (1) individual cigarette;
(5)
"Master Settlement Agreement" means the settlement agreement and related documents entered into on November 23, 1998, by the state and leading United States tobacco product manufacturers;
(6)
"Qualified escrow fund" means an escrow arrangement with a federally or state-chartered financial institution having no affiliation with any tobacco product manufacturer and having assets of at least one billion dollars ($1,000,000,000) when the arrangement requires that the financial institution hold the escrowed funds' principal for the benefit of releasing parties and prohibits the tobacco product manufacturer placing the funds into escrow from using, accessing, or directing the use of the funds' principal except as consistent with §
26-57-261(a)(2)(B)
;
(7)
"Released claims" means released claims as that term is defined in the Master Settlement Agreement;
(8)
"Releasing parties" means releasing parties as that term is defined in the Master Settlement Agreement;
(9)
(A)
"Tobacco product manufacturer" means an entity that, after July 30, 1999, directly and not exclusively through any affiliate:
(i)
Manufactures cigarettes anywhere that the manufacturer intends to be sold in the United States, including cigarettes intended to be sold in the United States through an importer, except where the importer is an original participating manufacturer, as that term is defined in the Master Settlement Agreement, who will be responsible for the payments under the Master Settlement Agreement with respect to the cigarettes as a result of the provisions of subsections II(mm) of the Master Settlement Agreement and who pays the taxes specified in subsection II(z) of the Master Settlement Agreement, and provided that the manufacturer of the cigarettes does not market or advertise the cigarettes in the United States;
(ii)
Is the first purchaser anywhere for resale in the United States of cigarettes manufactured anywhere that the manufacturer does not intend to be sold in the United States; or
(iii)
Becomes a successor of an entity described in subdivision (9)(A)(i) or subdivision (9)(A)(ii) of this section.
(B)
"Tobacco product manufacturer" shall not include an affiliate of a tobacco product manufacturer, unless the affiliate itself falls within any of subdivisions (9)(A)(i)-(iii) of this section; and
(10)
(A)
"Units sold" means the same as defined in §
26-57-1302
.
(B)
The Department of Finance and Administration shall promulgate such rules as are necessary to ascertain the amount of state excise tax paid on the cigarettes of the tobacco product manufacturer for each year.
Amended by Act 2019, No. 315,§ 3036, eff. 7/24/2019.
Acts 1999, No. 1165, § 1; 2011, No. 836, § 10.