1. (a)

   1. (1) All sellers of beer, wine, liquor, and other intoxicating beverages must collect and remit the tax upon the gross receipts or gross proceeds derived from the sale of those items to the consumer whether the sale is by the bottle or by the drink for off-premises or on-premises consumption.
   2. (2) All state and local sales taxes must be paid in full prior to the renewal of a liquor permit or license.

2. (b)

   1. (1) An establishment that charges an entrance fee or “cover charge” must collect and remit the tax on the gross receipts or gross proceeds received by it or any other person as a result of the entrance fee or “cover charge” in addition to the collection and remittance of tax upon the gross receipts or gross proceeds derived from all sales of tangible personal property.
   2. (2) Dues or fees paid to private clubs that hold a permit allowing for the sale, dispensing, or serving of alcoholic beverages of any kind on the premises are subject to tax unless the private club is a charitable organization.
   3. (3) See 26 CAR §§ 30-601 and 30-1117.

3. (c) Ten percent (10%) supplemental tax.

   1. (1) In addition to the gross receipts tax, holders of mixed drink permits (except private club permits) issued by the Alcoholic Beverage Control Division must collect and remit the ten percent (10%) supplemental gross receipts tax on all sales of alcoholic beverages except beer and wine.

   2. (2)

      1. (A) In addition to the gross receipts tax, holders of private club permits issued by the division must collect and remit the ten percent (10%) supplemental gross receipts tax upon all charges to members for the:

4. (i) Preparation and serving of mixed drinks; or

   1. (ii) Cooling and serving of beer and wine.

      1. (B) A private club that also has a beer permit should collect the state and local sales tax but not the ten percent (10%) supplemental tax on its sales of beer.

         1. (d) Four percent (4%) supplemental tax.
   2. (1) In addition to the gross receipts tax and ten percent (10%) supplemental tax, holders of mixed drink permits must collect and remit the four percent (4%) supplemental gross receipts tax on all sales of alcoholic beverages except beer and wine.
   3. (2) In addition to the gross receipts tax and ten percent (10%) supplemental tax, holders of private club permits must collect and remit the four percent (4%) supplemental gross receipts tax upon all charges to members for the preparation and serving of mixed drinks only.
5. (e) In addition to the gross receipts tax, there is a three percent (3%) alcoholic beverage excise tax on sales of wine and liquor to consumers for off-premises consumption.
6. (f) In addition to the gross receipts tax, there is levied a one percent (1%) beer excise tax on sales of beer to consumers for off-premises consumption.
7. (g) The ten percent (10%) supplemental tax, four percent (4%) supplemental tax, three percent (3%) liquor and wine excise tax, and one percent (1%) beer excise tax must be reported and remitted to the Department of Finance and Administration at the same time as the state gross receipts tax, on forms provided by the department.

8. (h)

   1. (1) All wines sold in the State of Arkansas for use as sacramental wine shall be exempt from all taxes levied on wine by the State of Arkansas.
   2. (2) Each container of sacramental wine sold in the state shall have attached to it a decal containing the words “Sacramental Wine”.
   3. (3) This decal shall be provided by and attached to the containers by wineries selling sacramental wine in this state.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained a footnote as follows: "Source: Ark. Code Ann. §§ 3-7-115, 3-7-201; 3-9-213; 26-52-301(6); 26-52-306"