(a) A tax is levied upon the:
- (1) Sale in this state of soft drinks, syrups, simple syrups, powders, and base products by a manufacturer, wholesaler, or distributor to a retailer or other purchaser; and
- (2) Purchase by a retailer in this state of soft drinks, syrups, simple syrups, powders, and base products from an unlicensed manufacturer, wholesaler, or distributor.
(b) The tax is:
- (1) Imposed upon and shall be paid by each licensee; and
- (2) May be passed on to the retailer or other purchaser.
(c) The rate of tax shall be as follows:
- (1) Two dollars ($2.00) per gallon of soft drink syrup or simple syrup;
- (2) Twenty-one cents (21¢) per gallon of bottled soft drinks; and
- (3) Twenty-one cents (21¢) per gallon of soft drink which may be produced from a package or container of powder or base product by following the manufacturer's directions.
- (d) If bottled soft drinks, syrups, simple syrups, powders, or base products ("products") are sold to a retailer with a place of business in an Arkansas city or unincorporated town which is divided by a state line from an incorporated city or town in an adjoining state and which has a population less than the population in the adjoining city, then the tax imposed on the licensee shall be at the same rate as imposed in the adjoining state on similar sales, provided that the products are delivered to the retailer within the boundaries of the city or town to be held for sale in the city or town to the ultimate consumer.