StrickenHall languageof wouldthe beHouse deletedof fromRepresentatives and93rd underlinedGeneral languageAssembly would- beRegular addedSession, to2021 presentAmendment law.Form ______________________________________________________________________ Subtitle of House Bill No.

State1546 ofTO ArkansasPHASE AsOUT Engrossed:THE SOFT DRINK TAX;

H3/23/21 H4/7/21 H4/12/21 93rd General Assembly A Bill Regular Session, 2021 HOUSE BILL 1546 5 By:

Representatives L.

Fite, Beaty Jr., M.

Berry, Bragg, Brooks, Brown, Crawford, Deffenbaugh, Evans, Hollowell, Jean, Lowery, Lundstrum, Lynch, Miller, Ray, Rye, Slape, Warren By:

Senators D.

Wallace, L.

Eads, T.

Garner, Gilmore, K.

Hammer 9 For An Act To Be Entitled AN ACT CONCERNING THE SOFT DRINK TAX AND THE PROGRAMS FUNDED BY THE SOFT DRINK TAX;

TO PHASE OUT THE SOFT DRINK TAX;

TO REDUCE THE SOFT DRINK TAX;

TO PROVIDE FOR THE EXPIRATION OF THE ARKANSAS SOFT DRINK TAX ACT;

TO PROVIDE FOR ADDITIONAL AMOUNTS TO BE DISTRIBUTED TO OFFSET THE EFFECT ON THE ARKANSAS MEDICAID PROGRAM TRUST FUND RESULTING FROM THE PHASEOUT OF THE SOFT DRINK TAX;

AND FOR OTHER PURPOSES.

Subtitle TO PHASE OUT THE SOFT DRINK TAX;

BE______________________________________________________________________ ITAmendment ENACTEDNo. BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

SECTION3 1.to House Bill 1546 Amend House Bill No.

1546 as engrossed H4/7/21 (version:

04/07/2021 10:34:11 AM):

Immediately following the enacting clause, add an additional section to read as follows:

"SECTION 1.

(2) The Arkansas Soft Drink Tax Act, § 26-57-901 et seq., was enacted in 1993 to help pay for the Arkansas Medicaid Program at a time when *JLL166*the 04-12-2021state's 10:30:34economy JLL166was Asnot Engrossed:as strong as it is today;

H3/23/21 H4/7/21 H4/12/21 HB1546 the state's economy was not as strong as it is today;

and (2) Satisfy the state's obligation to fund the Arkansas Medicaid Program using general revenues that were not available when the Arkansas Soft Drink Tax Act, § 26-57-901 et seq., was enacted.enacted." AND Appropriately renumber the sections of the bill *.JLL262* The Amendment was read ________________________________________________________________________________ By:

SECTIONRepresentative 2.L.

ArkansasFite CodeJLL/JLL §- 26-57-904(a),04-08-2021 concerning10:57:14 the_________________________ taxJLL262 rateChief underClerk the Arkansas Soft Drink Tax Act, is amended to read as follows:

(a) There is hereby levied and there shall be collected a tax upon every distributor, manufacturer, or wholesale dealer, to be calculated as follows:

(1) One dollar and twenty-six cents ($1.26) per gallon for For each gallon of soft drink syrup or simple syrup sold or offered for sale in the State of Arkansas:

(A) One dollar and twenty-six cents ($1.26) per gallon;

(B) Beginning the later of July 1, 2023, or July 1 of the calendar year following the fiscal year in which the general revenue portion of the total collections under the Arkansas Gross Receipts Act of 1941, § 26- 52-101 et seq., and the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., equals or exceeds two billion six hundred eighty-one million dollars ($2,681,000,000), ninety-four and five-tenths cents (94.5¢) per gallon;

and (C) Beginning the later of July 1 of the calendar year following the tax rate reduction under subdivision (a)(1)(B) of this section or July 1 of the calendar year beginning after the fiscal year in which the general revenue portion of the total collections under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., equals or exceeds two billion seven hundred fifty-four million dollars ($2,754,000,000), forty-seven and three-tenths cents (47.3¢) per gallon;

(2) Twenty and six-tenths cents (20.6¢) per gallon for For each gallon of bottled soft drinks sold or offered for sale in the State of 04-12-2021 10:30:34 JLL166 As Engrossed:

H3/23/21 H4/7/21 H4/12/21 HB1546 Arkansas:

(A) Twenty and six-tenths cents (20.6¢) per gallon;

(B) Beginning the later of July 1, 2023, or July 1 of the calendar year following the fiscal year in which the general revenue portion of the total collections under the Arkansas Gross Receipts Act of 1941, § 26- 52-101 et seq., and the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., equals or exceeds two billion six hundred eighty-one million dollars ($2,681,000,000), fifteen and five-tenths cents (15.5¢) per gallon;

and (C) Beginning the later of July 1 of the calendar year following the tax rate reduction under subdivision (a)(2)(B) of this section or July 1 of the calendar year beginning after the fiscal year in which the general revenue portion of the total collections under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., equals or exceeds two billion seven hundred fifty-four million dollars ($2,754,000,000), seven and seven-tenths cents (7.7¢) per gallon;

and (3)(A) When a package or container of powder or other base product, other than a syrup or simple syrup, is sold or offered for sale in Arkansas, and the powder is for the purpose of producing a liquid soft drink, then the tax on the sale of each package or container shall be equal to twenty and six-tenths cents (20.6¢) the following tax for each gallon of soft drink which that may be produced from each package or container by following the manufacturer's directions:

(i) Twenty and six-tenths cents (20.6¢);