Stricken language would be deleted from and underlined language would be added to present law.
*JLL373* 04/01/2025 4:27:50 PM JLL373
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 605 3
4
By: Senator J. Dismang 5
6
7
For An Act To Be Entitled 8
AN ACT TO CREATE THE DELTA TETRAHYDROCANNABINOL 9
EXCISE TAX ACT; TO TAX DELTA TETRAHYDROCANNABINOL 10
PRODUCTS; AND FOR OTHER PURPOSES. 11
12
13
Subtitle 14
TO CREATE THE DELTA TETRAHYDROCANNABINOL 15
EXCISE TAX ACT; AND TO TAX DELTA 16
TETRAHYDROCANNABINOL PRODUCTS. 17
18
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
20
SECTION 1. Arkansas Code Title 26, Chapter 57, is amended to add an 21
additional subchapter to read as follows: 22
Subchapter 17 — Delta Tetrahydrocannabinol Excise Tax Act 23
24
26-57-1701. Title. 25
This subchapter shall be known and may be cited as the "Delta 26
Tetrahydrocannabinol Excise Tax Act". 27
28
26-57-1702. Definition. 29
As used in this subchapter, "Delta tetrahydrocannabinol product" means 30
a product that contains one (1) or more of the following: 31
(1) Hemp-derived cannabidiol that: 32
(A) Contains not more than three -tenths of one percent 33
(0.3%) of delta-9 tetrahydrocannabinol (THC) on a dry weight basis as 34
verified by a nationally accredited laboratory for quality, purity, and 35
accuracy standards; and 36 SB605
2 04/01/2025 4:27:50 PM JLL373
(B) Is not approved by the United States Food and Drug 1
Administration for marketing as a medication; and 2
(2) Tetrahydrocannabinol, including without limitation the 3
following: 4
(A) Delta-1 cis or trans tetrahydrocannabinol, otherwise 5
known as a delta-9 cis or trans tetrahydrocannabinol, and its optical 6
isomers; 7
(B) Delta-6 cis or trans tetrahydrocannabinol, otherwise 8
known as a delta-8 cis or trans tetrahydrocannabinol, and its optical 9
isomers; 10
(C) Delta-3,4 cis or trans tetrahydrocannabinol, otherwise 11
known as a delta-6a,10a cis or trans tetrahydrocannabinol, and its optical 12
isomers; 13
(D) Delta-10 cis or trans tetrahydrocannabinol, and its 14
optical isomers; 15
(E) Delta-8 tetrahydrocannabinol acetate ester; 16
(F) Delta-9 tetrahydrocannabinol acetate ester; 17
(G) Delta-6a,10a tetrahydrocannabinol acetate ester; 18
(H) Delta-10 tetrahydrocannabinol acetate ester; 19
(I) A product derived from industrial hemp that was 20
produced as a result of a synthetic chemical process that converted the 21
industrial hemp or a substance contained in the industrial hemp into delta -8, 22
delta-9, delta-6a,10a, or delta-10 tetrahydrocannabinol including their 23
respective acetate esters; and 24
(J) Any other psychoactive substance derived therein. 25
26
26-57-1703. Applicability. 27
The excise tax levied under § 26 -57-1704 applies to Delta 28
tetrahydrocannabinol products sold on and after the effective date of this 29
act. 30
31
26-57-1704. Excise taxes. 32
A seller shall collect and remit an excise tax of fifty percent (50%) 33
from the gross receipts or gross proceeds derived from each sale of a Delta 34
tetrahydrocannabinol product on the forms and in the manner specified by the 35
Secretary of the Department of Finance and Administration. 36 SB605
3 04/01/2025 4:27:50 PM JLL373
1
26-57-1705. Imposition, reporting, remittance, and administration of 2
excise taxes. 3
Except as otherwise provided in this subchapter, the excise tax levied 4
under § 26-57-1704 shall be imposed, reported, remitted, and administered in 5
the same manner and at the same time as sales taxes under the Arkansas Gross 6
Receipts Act of 1941, § 26 -52-101 et seq. 7
8
26-57-1706. Administration of law. 9
This subchapter is subject to the Arkansas Tax Procedure Act, § 26 -18-10
101 et seq., as those provisions apply to the administration of this 11
subchapter by the Secretary of the Department of Finance and Administration, 12
including without limitation the provisions regarding interest and penalty on 13
delinquent taxes. 14
15
26-57-1707. Rules. 16
The Secretary of the Department of Finance and Administration may 17
promulgate rules to implement and allow for the enforcement of this 18
subchapter, including without limitation to identify products that are 19
subject to the excise tax levied under § 26 -57-1704. 20
21
SECTION 2. EFFECTIVE DATE. Section 1 of this act is effective on the 22
first day of the second calendar month following the effective date of this 23
act. 24
25
26
27
28
29
30
31
32
33
34
35
36