AR HB1546

Reduces the soft drink tax in two phases beginning July 1, 2023, contingent on general revenue collections reaching $2,681,000,000: syrup tax decreases from $1.26 to 94.5¢ per gallon and bottled drinks decrease from 20.6¢ to 15.5¢ per gallon.

Implements a second tax reduction when general revenue collections reach $2,754,000,000: syrup tax reduces to 47.3¢ per gallon and bottled drinks reduce to 7.7¢ per gallon.

Establishes a sunset provision repealing the entire soft drink tax when general revenue collections reach $2,830,000,000 or on the later of July 1 following the second rate reduction.

Directs supplemental allocations to the Arkansas Medicaid Program Trust Fund ranging from $9,038,000 to $39,438,000 annually to offset revenue losses from the phaseout, distributed monthly by the State Treasurer.

Finds that Arkansas's improved economy provides sufficient general revenues to fund Medicaid without the soft drink tax that was originally enacted in 1993 during economic hardship.