§ 26-57-1402 — Legislative findings and intent

(a) The General Assembly finds that: (1) In 2009, the Office of the Inspector General of the United States Department of Justice concluded that tobacco diversion costs the federal and state governments approximately five billion dollars ($5,000,000,000) in revenue from unpaid taxes annually; (2) The primary reason that tobacco diversion is profitable is the disparity among the states' excise taxes; (3) Purchasing cigarettes in a state with low tax rates and illegally reselling the cigarettes in a state with high tax rates can yield enormous profits for the people engaging in the scheme; and (4) As further recognized by the United States Department of Justice, the diversion of tobacco can occur anywhere in the supply chain, including diversion by manufacturers, wholesalers, and retail outlets. (b) (1) This subchapter is intended to provide information to the Department of Finance and Administration, the Arkansas Tobacco Control Board, and the Attorney General regarding the sale, transfer, and shipment of cigarette, roll-your-own, and other tobacco products. (2) With the data provided under this subchapter, the state will be in a better position to prevent tobacco diversion and prevent cigarettes from being sold to young people and an already addicted adult population.

Legislative History

Acts 2011, No. 836, § 19.