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.

Fiscal Impact Statement Bill: HB1636 Amendment Number: H1 Bill Subtitle: 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. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Reps. Ray, Hawk, J. Moore, Achor, Andrews, Beaty, Bentley, S. Berry, Breaux, Brooks, A. Brown, K. Brown, M. Brown, N. Burkes, John Carr, Cooper, Cozart, Crawford, Duffield, Eaton, Furman, Gramlich, Hollowell, Ladyman, Long, Lundstrum, McAlindon, McCollum, McKenzie, McNair, S. Meeks, Nazarenko, R. Scott Richardson, Richmond, Rose, Rye, Tosh, Underwood, Unger, Vaught, Wing, Womack, Beck, and Torres Sens. Petty and McKee Basic Change: HB1636-H1 (engrossed 3/11/25) provides for a phased reduction and ultimate elimination of the existing soft drink tax levied under § 26-57-904 ("soft drink tax") if certain conditions are met. Under current law, the soft drink tax is levied on the sale of soft drink syrup or simple syrup at the rate of $1.26 per gallon, bottled soft drinks at the rate of 20.6¢ per gal

FMAP30.77%69.23% Percentag Cut by Rate e of AmountChange by YearState ShareFederal ShareTotal Computable Year Change SFY2024 Collections$ 1.26$ 42,800,000.00 Year 1 Cut$ 0.96$ 0.3023.8%$ 32,609,523.81$ 10,190,476.19$ 10,190,476.19$ 22,927,743.47$ 33,118,219.66 Year 2 Cut$ 0.72$ 0.5442.9%$ 24,457,142.86$ 8,152,380.95$ 18,342,857.14$ 41,269,938.25$ 59,612,795.39 Year 3 Cut$ 0.48$ 0.7861.9%$ 16,304,761.90$ 8,152,380.95$ 26,495,238.10$ 59,612,133.03$ 86,107,371.13 Year 4 Cut$ 0.24$ 1.0281.0%$ 8,152,380.95$ 8,152,380.95$ 34,647,619.05$ 77,954,327.81$ 112,601,946.86 Year 5 Cut$ -$ 1.26100.0%$ -$ 8 ,152,380.95$ 42,800,000.00$ 9 6,296,522.59$ 139,096,522.59 Impact Over 5 Years$ 132,476,190.48$ 298,060,665.15$ 430,536,855.63