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.
Last Action (March 3, 2025): Recommended for study in the Interim by the Committee on REVENUE & TAXATION- HOUSE
Sponsors
AI-Generated Summary
House Bill 1636 proposes a phased elimination of the Arkansas Soft Drink Tax Act. It requires the Department of Finance and Administration to annually estimate revenue generated from sales and compensating use taxes on soft drinks. Based on these annual revenue estimates reaching specific tiered thresholds, ranging from $16 million to $52 million, the existing soft drink tax rates will be incrementally reduced. The bill sets out a schedule for decreasing tax rates on soft drink syrup, bottled soft drinks, and powdered drink bases. Once the tax rate reaches zero for all categories, the bill provides for the formal repeal and removal of the Arkansas Soft Drink Tax Act from the state code.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are soft drink manufacturers, wholesale dealers, and distributors, who would see a decrease and eventual elimination of the excise tax currently levied on their products. Additionally, consumers may benefit if these savings are passed down through lower retail prices for soft drinks, and retailers who sell these products may see increased margins or lower costs.
Who Might Suffer?
The primary entity negatively impacted by this bill is the State of Arkansas, which would experience a reduction and eventual elimination of the tax revenue currently generated by the Soft Drink Tax Act. Depending on how these funds are allocated within the state budget, public programs or services supported by this specific tax revenue stream could face funding shortfalls or require alternative financing.
Vote Records
Third Reading
April 7, 2025View individual votes (100)
| Legislator | Party | Chamber | Vote |
|---|---|---|---|
| Tracy Steele | Democrat | House | Nay |
| Fred Allen | Democrat | House | Nay |
| Lane Jean | Republican | House | Yea |
| Stephen Meeks | Republican | House | Yea |
| Mark Perry | Democrat | House | Yea |
| Jon Eubanks | Republican | House | Nay |
| Matthew Shepherd | Republican | House | Yea |
| Jeff Wardlaw | Republican | House | Nay |
| Bruce Cozart | Republican | House | NV |
| David Whitaker | Democrat | House | Nay |
| Mike Holcomb | Republican | House | Nay |
| Stephen Magie | Democrat | House | Nay |
| Mark McElroy | Republican | House | Yea |
| Richard Womack | Republican | House | Yea |
| Jack Ladyman | Republican | House | Nay |
| Robin Lundstrum | Republican | House | Yea |
| Dwight Tosh | Republican | House | NV |
| Rick Beck | Republican | House | Yea |
| Mary Bentley | Republican | House | NV |
| Les Eaves | Republican | House | NV |
| Justin Gonzales | Republican | House | Yea |
| Julie Mayberry | Republican | House | Nay |
| Ken Ferguson | Democrat | House | NV |
| Ron Mcnair | Republican | House | Yea |
| Marcus Richmond | Republican | House | Yea |
| Deann Vaught | Republican | House | NV |
| Karilyn Brown | Republican | House | Yea |
| Sonia Eubanks Barker | Republican | House | NV |
| Frances Cavenaugh | Republican | House | Nay |
| Jimmie Gazaway | Republican | House | Nay |
| Roger Lynch | Republican | House | Nay |
| John Maddox | Republican | House | NV |
| Aaron Pilkington | Republican | House | Yea |
| Johnny Rye | Republican | House | Nay |
| Les Warren | Republican | House | Nay |
| Carlton Wing | Republican | House | Yea |
| Austin Mccollum | Republican | House | Yea |
| Carol Dalby | Republican | House | Yea |
| Steve Hollowell | Republican | House | Yea |
| Brian Evans | Republican | House | NV |
| Lee Johnson | Republican | House | Yea |
| Andrew Collins | Democrat | House | Nay |
| Stan Berry | Republican | House | Yea |
| Harlan Breaux | Republican | House | Nay |
| Cameron Cooper | Republican | House | Yea |
| Nicole Clowney | Democrat | House | Nay |
| Cindy Crawford | Republican | House | NV |
| Denise Garner | Democrat | House | Nay |
| Tippi McCullough | Democrat | House | Nay |
| Jay Richardson | Democrat | House | Nay |
| Jim Wooten | Republican | House | Nay |
| Denise Ennett | Democrat | House | Nay |
| Richard McGrew | Republican | House | Yea |
| Joy Springer | Democrat | House | Nay |
| Howard Beaty | Republican | House | Yea |
| Tony Furman | Republican | House | Yea |
| Kendon Underwood | Republican | House | Yea |
| David Ray | Republican | House | Yea |
| John Carr | Republican | House | Yea |
| Rick McClure | Republican | House | NV |
| Keith Brooks | Republican | House | Yea |
| Ashley Hudson | Democrat | House | Nay |
| Jon Milligan | Republican | House | NV |
| RJ Hawk | Republican | House | Yea |
| Wade Andrews | Republican | House | Yea |
| Rebecca Burkes | Republican | House | Yea |
| Hope Duke | Republican | House | Yea |
| Zack Gramlich | Republican | House | Yea |
| Mindy McAlindon | Republican | House | Yea |
| Matt Duffield | Republican | House | Yea |
| Stetson Painter | Republican | House | Yea |
| Steve Unger | Republican | House | NV |
| Wayne Long | Republican | House | Yea |
| Scott Richardson | Republican | House | Yea |
| Brandon Achor | Republican | House | Yea |
| Jeremiah Moore | Republican | House | Yea |
| Joey Carr | Republican | House | Nay |
| Matt Brown | Republican | House | Yea |
| Shad Pearce | Republican | House | Nay |
| Chad Puryear | Republican | House | Yea |
| Ryan Rose | Republican | House | Yea |
| Bart Schulz | Republican | House | Nay |
| Trey Steimel | Republican | House | Nay |
| Tara Shephard | Democrat | House | Nay |
| Jeremy Wooldridge | Republican | House | Nay |
| Kendra Moore | Republican | House | Nay |
| Brit McKenzie | Republican | House | Yea |
| Steven Walker | Republican | House | Nay |
| Glenn Barnes | Democrat | House | Nay |
| Lincoln Barnett | Democrat | House | Nay |
| Alyssa Brown | Republican | House | Yea |
| Nick Burkes | Republican | House | Yea |
| Paul Childress | Republican | House | Yea |
| James Eaton | Republican | House | Nay |
| Brad Hall | Republican | House | Nay |
| Dolly Henley | Republican | House | Yea |
| Jessie McGruder | Democrat | House | Nay |
| Jason Nazarenko | Republican | House | Yea |
| Randy Torres | Republican | House | Yea |
| Diana Gonzales Worthen | Democrat | House | Nay |
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