Arkansas Code Title 26. Taxation § 26-57-215. Permits--Types

(a) Each person listed in this section, before commencing business, or if already in business, before continuing, shall pay an annual privilege fee and secure a permit from the Director of Arkansas Tobacco Control.

(b)(1) In addition to securing a permit under subsection (a) of this section, a manufacturer whose products are sold in this state shall register with the Secretary of the Department of Finance and Administration.

(2) A wholesaler of tobacco products, vapor products, alternative nicotine products, or e-liquid products shall secure the proper wholesale permit.

(3)(A) Every wholesaler's or manufacturer's salesperson of any tobacco products, vapor product, alternative nicotine product, or e-liquid product who contacts a retailer in this state for the purpose of soliciting, taking, or processing orders for the sale of tobacco products, vapor products, alternative nicotine products, or e-liquid products or who through contact delivers or causes delivery of any tobacco products, vapor product, alternative nicotine product, or e-liquid product to a retailer in this state, shall first secure a salesperson's permit.

(B) Application shall be made by the wholesaler or manufacturer who is the salesperson's employer.

(C) A salesperson's permit is not transferable to another employer and must be surrendered to the Director of Arkansas Tobacco Control by the employer upon termination of the salesperson's employment.

(4) Every retailer of tobacco products, vapor products, alternative nicotine products, or e-liquid products that operates a place of business shall secure the proper retail permit.

(5) A current permit holder may secure temporary permits to operate at picnics, fairs, carnivals, circuses, or any other temporary public gathering for periods not to exceed ten (10) days for a fee of five dollars ($5.00).

(6)(A)(i) Every vendor shall obtain a vending machine permit from the Director of Arkansas Tobacco Control.  However, municipal corporations may license and tax the privilege of doing business as a vendor in cities where the vendors maintain an established place of business, provided that the machine license tax imposed may not exceed fifty percent (50%) of the amounts levied on the vendors' permits under this subchapter.

(ii) If a municipality by ordinance licenses or taxes the privilege of doing business as a vendor, proof that the license is in good standing is a mandatory condition for the issuance of a state permit required under this section.

(B)(i)(a) In addition, every vendor shall obtain a permit stamp for each machine of any type placed in operation in this state for the purpose of vending any tobacco products, vapor products, alternative nicotine products, or e-liquid products.

(b) This stamp shall be affixed to the machine in a conspicuous location together with a decal or card reciting the name, address, and permit number of the vendor operating the machine.

(ii) A stamp shall not be issued for a machine upon which the state gross receipts or state compensating tax has not been paid, and the Director of Arkansas Tobacco Control shall require proof of payment before the initial issue of a stamp for any vending machine containing tobacco products, vapor products, alternative nicotine products, or e-liquid products.

(c)(1) Permits are issued as follows:

(A) A permit for a sole proprietorship is issued in the owner's name and in the fictitious business name, if any;

(B)(i) A permit for a partnership or limited liability company is issued in the name of:

(a) The managing partner or managing member;  and

(b) The partnership or limited liability company.

(ii) If the managing partner or managing member of a limited liability company is a partnership, limited liability company, or corporation, then the permit shall be issued in the name of:

(a) The president or chief executive officer;  and

(b) The partnership or limited liability company;  and

(C) A permit for a publicly traded or nonpublicly traded corporation is issued in the name of the president or chief executive officer of the corporation and in the name of the corporation.

(2) It is a violation for a permitted entity not to provide written notification to the Director of Arkansas Tobacco Control within thirty (30) days of a change in the following:

(A) The managing partner, limited liability company managing member, or president or chief executive officer of a corporation, partnership, or limited liability company;  or

(B) The stockholders effecting twenty-five percent (25%) or more of the total voting shares of a nonpublicly traded corporation.

(d)(1) When an entity transfers a business permitted under this subchapter, the entity to which the business is transferred shall apply for and may be issued a new permit under this subchapter.

(2) When a partnership or limited liability company permitted under this subchapter changes, removes, or replaces the managing partner, managing member, president, or chief executive officer, the existing permit issued under this subchapter is void, and the partnership or limited liability company shall apply for and may be issued a new permit under this subchapter.

(3) When a nonpublicly traded corporation permitted under this subchapter changes, removes, or replaces the president or chief executive officer named on the permit or changes, removes, or replaces a stockholder who owns fifty percent (50%) or more of the total voting shares of the nonpublicly traded corporation's stock, the permit issued under this subchapter is void, and the nonpublicly traded corporation shall apply for and may be issued a new permit under this subchapter.

(4) When a publicly traded corporation permitted under this subchapter changes, removes, or replaces the president or chief executive officer named on the permit or changes, removes, or replaces a stockholder who owns fifty percent (50%) or more of the total voting shares of the publicly traded corporation's stock, the permit issued under this subchapter is void, and the publicly traded corporation shall apply for and may be issued a new permit under this subchapter.

(e) An entity may apply for and be issued a permit under this subchapter in advance of the effective date of the permit to facilitate continuity of business operations.


FindLaw Codes are provided courtesy of Thomson Reuters Westlaw, the industry-leading online legal research system. For more detailed codes research information, including annotations and citations, please visit Westlaw.

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.