Bill

Bill > HB1636


AR HB1636

AR HB1636
To Amend The Arkansas Soft Drink Tax Act, As Affirmed By Referred Act 1 Of 1994; And To Phase Out The Soft Drink Tax Based On Sales Tax Collections From Sales Of Soft Drinks.


summary

Introduced
03/03/2025
In Committee
04/03/2025
Crossed Over
Passed
Dead
05/05/2025

Introduced Session

Potential new amendment
95th General Assembly (2025 Regular)

Bill Summary

AN ACT TO AMEND THE LAW CONCERNING TAXES ON SOFT DRINKS; TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO CERTIFY THE AMOUNT OF SALES TAX REVENUES DERIVED FROM THE SALE OF SOFT DRINKS; TO AMEND THE ARKANSAS SOFT DRINK TAX ACT, AS AFFIRMED BY REFERRED ACT 1 OF 1994; TO PHASE OUT THE SOFT DRINK TAX; TO PROVIDE RESTRICTIONS ON THE REDUCTION OF THE SOFT DRINK TAX; AND FOR OTHER PURPOSES.

AI Summary

This bill amends the Arkansas Soft Drink Tax Act to gradually phase out taxes on soft drink sales by implementing a structured reduction process tied to annual sales tax revenues. Under the new provisions, the Department of Finance and Administration must certify the amount of sales tax revenue derived from soft drink sales each fiscal year. The tax rates for soft drink syrup, bottled soft drinks, and soft drink powder will be progressively reduced based on specific revenue thresholds. Initially set at $1.26 per gallon for syrup, 20.6 cents per gallon for bottled drinks, and an equivalent rate for powder mixes, the tax will be systematically lowered as sales tax collections increase. The reductions will occur in stages: first to 96 cents, then 72 cents, then 48 cents, then 24 cents, and ultimately to zero cents when sales tax collections reach $52 million. Once all soft drink taxes are reduced to zero, the entire Arkansas Soft Drink Tax Act will be repealed, with the Secretary of Finance and Administration required to notify legislative authorities about the repeal. This approach allows for a gradual and predictable reduction of soft drink taxes based on demonstrable sales tax performance.

Committee Categories

Budget and Finance

Sponsors (46)

Jim Petty (R)* David Ray (R)* Brandon Achor (R),  Wade Andrews (R),  Howard Beaty (R),  Rick Beck (R),  Mary Bentley (R),  Stan Berry (R),  Harlan Breaux (R),  Keith Brooks (R),  Alyssa Brown (R),  Karilyn Brown (R),  Matt Brown (R),  Nick Burkes (R),  John Carr (R),  Cameron Cooper (R),  Bruce Cozart (R),  Cindy Crawford (R),  Matt Duffield (R),  James Eaton (R),  Tony Furman (R),  Zack Gramlich (R),  R.J. Hawk (R),  Steve Hollowell (R),  Jack Ladyman (R),  Wayne Long (R),  Robin Lundstrum (R),  Mindy McAlindon (R),  Austin McCollum (R),  Matt McKee (R),  Brit McKenzie (R),  Ron McNair (R),  Stephen Meeks (R),  Jeremiah Moore (R),  Jason Nazarenko (R),  Scott Richardson (R),  Marcus Richmond (R),  Ryan Rose (R),  Johnny Rye (R),  Randy Torres (R),  Dwight Tosh (R),  Kendon Underwood (R),  Steve Unger (R),  DeAnn Vaught (R),  Carlton Wing (R),  Richard Womack (R), 

Last Action

Recommended for study in the Interim by the Committee on REVENUE & TAXATION- HOUSE (on 04/09/2025)

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