§ 26-57-236 - Arkansas Statutes

Second of 2 versions of this section

26-57-236. Stamp deputies. [As amended by Acts 1997, No. 1337.]

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

(b) The director may appoint and commission stamp deputies who shall be the owners or officers of wholesalers to handle the stamps and collect the tax on tobacco products before sales of tobacco products are made to the retailers.

(c) Stamp deputies within the scope of their authority are agents of the director and shall be accountable as such for any wrongful acts.

(d) Each stamp deputy shall furnish a bond in an amount and in the form as prescribed by the director.

(e) Stamp deputies shall keep records of all stamp sales and tax collections and shall make the reports prescribed by the director.

(f) The Director of the Department of Finance and Administration shall pay a commission to stamp deputies for the sale of cigarette tax stamps, the affixing of a cigarette tax stamps stamp to each package of cigarettes, and the collection of cigarette taxes. The commission paid shall not be less than three percent (3%) of the total aggregate cigarette tax collected.

(g) All deposits held by any bank for a stamp deputy which represent the sales of stamps are trust funds and shall be held as a special deposit. In the event of the failure or insolvency of the bank, the deposits shall be classed and considered as preferred claims due the State of Arkansas.

(h) 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.