§ 26-57-1102 - Additional tax -- Tobacco products other than cigarettes. - Arkansas Statutes

26-57-1102. Additional tax -- Tobacco products other than cigarettes.

(a) (1) In addition to the tax imposed by 26-57-208(2), there is imposed an additional excise or privilege tax on tobacco products other than cigarettes on the first sale to wholesalers or retailers within the state at two percent (2%) of the manufacturer's selling price.

(2) The tax shall be computed on the actual manufacturer's invoice price before discounts and deals.

(b) (1) (A) The taxes levied by this section and 26-57-1101 shall be reported and paid by wholesalers licensed pursuant to 26-57-214.

(B) However, retailers shall be liable for reporting and paying these taxes when a retailer purchases tobacco products directly from a manufacturer or from a wholesaler or distributor not licensed pursuant to 26-57-214.

(2) (A) Any taxpayer who fails to report and remit the tobacco tax due on tobacco products purchased from manufacturers, distributors, or wholesalers who are not licensed under 26-57-214 shall be subject to the following penalties:

(i) Five percent (5%) of the total tobacco tax due for the first offense;

(ii) Twenty percent (20%) of the total tobacco tax due for the second offense; and

(iii) Twenty-five percent (25%) of the total tobacco tax due for the third and any subsequent offenses.

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

(3) The provisions of this subsection shall not affect the provisions of 26-57-228.

(c) As provided in 26-57-244, the Director of the Department of Finance and Administration may make a direct assessment of excise tax against any person in possession of untaxed tobacco products.