AR HB1005

Adds new section 26-52-323 to Arkansas Code requiring the Director of the Department of Finance and Administration to either publish a list of Universal Product Codes identifying items that meet definitions of candy or soft drinks under state law.

The UPC list shall provide guidance to retailers, sellers, and vendors on which items are classified as candy or soft drinks but not as food and food ingredients under the Arkansas Gross Receipts Act of 1941 or the Arkansas Compensating Tax Act of 1949.

The published list is exempt from the Arkansas Administrative Procedure Act requirements.

Alternatively, the director may shield retailers, sellers, or vendors from tax penalties if they demonstrate good faith effort to collect and remit taxes on candy and soft drinks at both the food and food ingredients tax rate and the standard taxable rates.

Approved February 18, 2019.