Arkansas Code Title 26. Taxation § 26-57-805. Additional tax on tobacco products other than cigarettes

(a)(1) In addition to other taxes imposed by law, there is levied an additional excise or privilege tax on the first sale of tobacco products other than cigarettes at the rate of seven percent (7%) of the invoice price to a wholesaler or retailer, before discounts.

(2) However, the excise or privilege tax levied under subdivision (a)(1) of this section is subject to the limitation stated in § 26-57-208(2)(B).

(3) As used in this subsection, “invoice price” means the same as defined in § 26-57-203.

(b)(1) The tax levied by this section shall be reported and paid by wholesalers that shall be licensed under § 26-57-214.

(2) However, unless a retailer has confirmed and establishes by clear and convincing evidence that the tax levied under this section has been paid previously on the tobacco products, the retailer is liable for reporting and paying this tax when the retailer obtains tobacco products from a person other than a wholesaler licensed under § 26-57-214.

(f)(1) A taxpayer that fails to report and remit the tobacco tax due on tobacco products obtained from a person other than a wholesaler that is licensed under § 26-57-214 is subject to the following penalties:

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