Arkansas Code Title 26. Taxation § 26-57-907. Adjoining states--Border city tax rates

(a) If a distributor, manufacturer, or wholesale dealer sells bottled soft drinks, soft drink syrups, powders, or base products to retailers or retail dealers located in a city or incorporated town which is subject to the border city tax rate provided in § 26-52-303, then the tax shall be at the same rate as imposed by the adjoining state on distributors, manufacturers, or wholesale dealers, not to exceed the rate imposed by § 26-57-904.

(b) If a retailer or retail dealer is located in a city or incorporated town which is subject to the border city tax rate provided by § 26-52-303 and the retailer or retail dealer purchases bottled soft drinks, soft drink syrup, powder, or base products from an unlicensed distributor, manufacturer, or wholesale dealer, then the tax imposed by § 26-57-904 shall be at the same rate imposed by the adjoining state, not to exceed the rate imposed by § 26-57-904.