SB337 Summary

• Reinstates reduced cigarette tax rates for Arkansas border cities and towns adjacent to state lines, allowing them to match tax rates imposed by adjoining states.

• Applies reduced rates to cigarettes sold within 300 feet of a state line, in cities adjoining state lines, and in cities whose corporate limits adjoin an Arkansas border city separated by a navigable river from a metropolitan area with population of at least 1 million.

• Reduced border zone rates apply only to retail sales to actual consumers; sales by border zone retailers to other retailers or wholesalers must pay the full Arkansas excise tax.

• Amends Arkansas Code §§ 26-57-208, 26-57-802, 26-57-803, 26-57-804, and 26-57-806 to add specific provisions allowing border zone cigarette tax reductions while maintaining compliance requirements through cigarette stamp evidence.

• Violators who sell or possess cigarettes without proper full tax payment in non-border zones face suspension or revocation of permits or licenses from the Director of Arkansas Tobacco Control.