(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.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.