(a) The sale of alcoholic beverages pursuant to this subchapter shall be subject to the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., as amended.

(b)

(1) In addition, there is levied a supplemental tax of ten percent (10%) upon the gross proceeds or gross receipts from the sale of alcoholic beverages pursuant to this subchapter.

(2)

(A) In addition to the tax levied under subdivision (b)(1) of this section, a supplemental tax of four percent (4%) is levied on the gross proceeds or gross receipts from the sale of alcoholic beverages under this subchapter.

(B) However, the tax levied under subdivision (b)(2)(A) of this section shall not apply to gross proceeds or gross receipts from the sale of beer or wine.

(c)

(1) The supplemental tax shall be reported and paid to the Director of the Department of Finance and Administration in the same manner and at the same time as the gross receipts tax and shall be subject to such reasonable rules and regulations as the director may prescribe, including the maintenance of permanent records showing all purchases and sales of alcoholic beverages.

(2)

(A) The tax levied under subdivision (b)(2) of this section shall be credited as special revenues to the University of Arkansas Medical Center Fund.

(B)

(i) The funds credited under subdivision (c)(2)(A) of this section shall be used exclusively for making loan repayments for construction projects authorized by Acts 1989 (1<st> Ex. Sess.), No. 261, until the loan is paid in full.

(ii) After the Chancellor of the University of Arkansas for Medical Sciences certifies in writing to the Chief Fiscal Officer of the State that the loan has been repaid in full, then revenue from the tax collected under subdivision (b)(2) of this section may be used for any purpose authorized by law.

(d) The taxes herein prescribed may be passed on to the consumer and shall be in lieu of all other special taxes at the retail level.

(e) Wine shall not be defined as a mixed drink for the purposes of §§ 3-9-221 -- 3-9-225 and shall not be subject to the supplemental tax of twelve percent (12%).

(f) (1) The Department of Finance and Administration shall notify the city or county of an audit for the supplemental tax on the sale of alcoholic beverages consumed on the premises if:

(A) The department audits a taxpayer;

(B) The department makes an assessment related to the audit against the taxpayer; and

(C) The taxpayer operates in a city or county that imposes a supplemental tax on the sale of alcoholic beverages consumed on the premises under § 3-9-214.

(2) The city or county may use this information to administer its supplemental tax on the sale of alcoholic beverages consumed on the premises.

(3) A city or county provided information under this subsection is subject to all of the confidentiality requirements of § 26-18-303.