SALT Report 3905 – Similar to multiple other states, Arkansas Act 141 will be removing candy and soft drinks from the definitions of “Food” and “Food Ingredients” beginning January 1, 2018. The full 6.5% State sales and use tax rate will apply to these items sold at retail.
Soft drink will be defined as a nonalcoholic beverage that contains natural or artificial sweeteners. A soft drink does not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or is greater than fifty percent (50%) of vegetable or fruit juice by volume.
Candy will be defined as a preparation of sugar, honey, or other natural or artificial sweetener in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces.