Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Rule 006.05.08-002 - Rule 1993-8: Soft Drink Tax Regulation

Current through Register Vol. 49, No. 6, June, 2024
These rules and regulations are promulgated for the enforcement
				and administration of Act 7 of 1992 (2nd Ex. Sess.).
A. DEFINITIONS
1. "Bottle" means any closed or sealed glass,
			 metal, paper, plastic or other type container regardless of its size or shape.
			 A paper or plastic cup with a removable lid is not a "bottle" for purposes of
			 this regulation.
2. "Bottled soft
			 drink" means any complete, ready-to-consume non-alcoholic drink, whether
			 carbonated or not.
3. "Diet soft
			 drink" means any low-calorie or sugarless soft drink that is not manufactured
			 and sold as a dietary supplement or for weight reduction.
4. "Dietary supplement" means any liquid or
			 powder manufactured for weight gain or maintenance.
5. "Director" means the director of the
			 Department of Finance and Administration or his authorized agent.
6. "Distributor, manufacturer or wholesaler"
			 means any person who receives, stores, manufactures, bottles or sells bottled
			 soft drinks, soft drink syrups, simple syrups, or powders or base products to
			 retail dealers, or to other manufacturers, wholesalers or distributors for
			 resale.
7. "Licensee" means:
a. A distributor, manufacturer or wholesaler
			 who sells soft drinks, syrups, simple syrups, powders or base products to
			 retail dealers within Arkansas; and,
b. A retailer in this state who purchases
			 soft drinks, syrups, simple syrups, powders or base products from an unlicensed
			 distributor, manufacturer or wholesaler.
8. "Milk" means natural liquid milk or
			 natural milk concentrate regardless of animal source or butter fat content; or
			 dehydrated natural milk whether reconstituted or not.
9. "Milk product" means milk, cream, butter,
			 cheese, ice cream, skim milk, condensed milk or other milk derivative as
			 defined by Ark. Code Ann. §
									20-59-201(2).
10. "Natural fruit juice" means the original
			 liquid from pressing fruit, or the reconstitution of natural fruit juice
			 concentrate or dehydrated natural fruit juice.
11. "Natural vegetable juice" means the
			 original liquid resulting from pressing vegetables, or the reconstitution of
			 natural vegetable juice concentrate or dehydrated natural vegetable
			 juice.
12. "Non-alcoholic beverage"
			 means and includes all beverages not subject to tax under Ark. Code Ann. §
									3-7-104.
13. "Place of business" means any place where
			 soft drinks, syrups, simple syrups, powders or base products are manufactured,
			 held for wholesale distribution, received for sale, or sold in this
			 state.
14. "Powder" or "other base"
			 means a solid mixture of basic ingredients used to make, mix or compound soft
			 drinks with water, ice, syrup, simple syrup, fruits, vegetables, fruit juice,
			 vegetable juice or any other product to make a complete soft drink.
14. "Retailer" or "retail dealer" means any
			 person, except a manufacturer, distributor or wholesaler, who purchases soft
			 drinks, syrups, simple syrups, powders or base products for sale in this state
			 to the ultimate consumer.
15.
			 "Sale" means the transfer of possession for a valuable consideration of
			 tangible personal property.
16.
			 "Simple syrup" means a mixture of sugar and water.
17. "Soft drink" means any non-alcoholic
			 beverage sold for human consumption including ready-to-drink coffee and tea
			 sold in bottles, cans or other sealed containers and "diet" or low-calorie soft
			 drinks. "Soft drink" does not include products used solely for coloring or
			 flavoring other beverages. Examples of such products include lime and lemon
			 juice, bitters, and clam juice. Examples of a 'soft drink" include, but are not
			 limited to:
a. soda water, Club soda, seltzer
			 water and any other water to which carbonation has been added by the
			 manufacturer or bottler;
b. ginger
			 ale;
c. all soft drinks commonly
			 referred to as colas such as Coke, Pepsi, Dr. Pepper, Mr. Pibb, Tab, and RC
			 Cola, and including decaffeinated, sugarless or "diet" soft drinks;
d. artificially or naturally flavored drinks
			 of ten percent (10%) or less natural fruit or vegetable juice, including grape
			 soda, cherry soda, root beer, strawberry soda, lime soda, limeade, lemon soda,
			 lemonade, lemon-lime soda, orange soda, orangeade, flavored water, Mountain
			 Dew, 7-Up, Sprite, CountryTime, Crystal Lite, Clearly Canadian, and including
			 decaffeinated, sugarless or "diet" soft drinks;
e. low-alcohol or non-alcoholic beer, ale and
			 wine;
f. ready-to-drink liquid
			 mixes to which an alcoholic beverage may be added to produce beverages such as
			 margaritas, pina coladas, Tom Collins, and daiquiris;
g. chocolate-flavored sodas or drinks which
			 contain either natural or artificial flavoring and which do not contain milk or
			 milk products.
18.
			 "Syrup" means any liquid mixture of basic ingredients used to make, mix or
			 compound soft drinks with water, simple syrup, ice, fruits, vegetables, fruit
			 juice, vegetable juice or any other product suitable to make a complete soft
			 drink. "Syrups" include mixtures to which water and alcohol may be added to
			 produce a margarita, pina colada, Tom Collins, daiquiri or other similar
			 beverage.