DEFINITIONS. As used in this regulation,
unless the context otherwise requires:
"Border zone retailer" means a cigarette retailer whose place of business is
located within the State of Arkansas and which is:
a. within three hundred feet (300') of the
Arkansas state line,
b. within a
city that adjoins the Arkansas state line,
c. in any city which is separated only by a
navigable river from a city which adjoins the Arkansas state line, or
d. in a city with a population of 5,000 or
more that adjoins a city in another state, which city is divided only by the
Arkansas state line and also has a population of 5,000 or more.
2. "Stamps" means the Arkansas
cigarette stamps denoting the tax on cigarettes and which are required to be
affixed to cigarettes sold in the State of Arkansas. The Director shall provide
stamps to wholesalers and stamp deputies for cigarettes sold within and without
border zones. The Director may provide separate stamps for each border zone
area as needed for the proper enforcement and collection of tobacco products
B. 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. The current non-border zone rate is $15.75 per 1,000 cigarettes.
Cigarettes sold to a border zone retailer may be taxed at a lower rate pursuant
to Ark. Code Ann. §§
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
Director has issued separate border zone stamps for that area.
C. A retailer with a place of business
outside of a border zone may not retain in inventory any cigarettes which have
the border zone stamps affixed. Such retailer may only retain in inventory
cigarettes which have stamps affixed reflecting that the full Arkansas tobacco
products tax was paid. The Director may confiscate any cigarettes which are not
properly stamped. The Director may also provide the Arkansas Tobacco Control
Board with the identity of the border zone retailer.
D. 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.