Cigarette stamps and border zone sales

# (a)

# (1)

Prior to selling cigarettes to an Arkansas cigarette retailer, a cigarette wholesaler must affix stamps to each package of cigarettes indicating that the tobacco products tax has been paid.

# (2)

The current non-border zone rate is fifteen dollars and seventy-five cents ($15.75) per one thousand (1,000) cigarettes.

# (3)

Cigarettes sold to a border zone retailer may be taxed at a lower rate pursuant to Arkansas Code §§ 26-57-208, 26-57-802, and 26-57-803.

# (4)

In the event that a lower tax rate applies to sales of cigarettes to border zone retailers, the wholesaler must affix a separate border zone stamp if the Secretary of the Department of Finance and Administration has issued separate border zone stamps for that area.

# (b)

# (1)

A retailer with a place of business outside of a border zone may not retain in inventory any cigarettes that have the border zone stamps affixed.

# (2)

Such retailer may only retain in inventory cigarettes that have stamps affixed reflecting that the full Arkansas tobacco products tax was paid.

# (3)

The secretary may confiscate any cigarettes that are not properly stamped.

# (4)

The secretary may also provide the Arkansas Tobacco Control Board with the identity of the border zone retailer.

# (c)

Effective July 1, 1998, all wholesalers selling cigarettes to border zone retailers with a store on or near the Missouri-Arkansas border must affix a separate Missouri border zone stamp to all cigarettes sold to such border zone retailers.