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Beer/Malt Beverage

The taxes are to be collected by the wholesaler, acting as an agent for the State.  The excise tax levied on “Beer” and “Malt Beverages” shall be reported and paid to the Department of Finance and Administration on or before the 15th day of the month following the month in which the wholesaler or other person authorized to sell obtains delivery from the supplier.

Definitions: 

• Barrel means 31 gallons of liquid.
• Beer means any fermented liquor made from malt or any substitute and having an alcoholic content of not more than 5% by weight.
• Malt Beverage means any liquor brewed from the fermented juices of grain and having an alcoholic content of not less than 5% or more than 21% by weight.
• Native Brewery means a small brewery or microbrewery-restaurant. 
• Small Brewery means any licensed facility that manufactures fewer than 45,000 barrels of beer and malt beverages per year for sale or consumption
• Hard Cider means liquor brewed from the fermented juices of fruit and containing more than three percent (3%) and not more than twenty-one percent (21%) of alcohol by weight.

Taxation:

Beer produced/distributed by a Native Brewery is taxed at:

1)  Gallonage tax: $0.241935 per gallon or $7.50 per barrel,
2)  Enforcement/Inspection tax: not applicable
3)  Combined tax rate: Gallon rate: $0.241935 and Barrel rate: $7.50

Beer purchased/distributed by a Distributor/Wholesaler (non-Native Brewery) is taxed at:

4) Gallonage tax: $0.234375 per gallon or $7.265625 per barrel, AND
5) Enforcement/Inspection tax: $0.007813 per gallon or $0.242188 barrel.
6) Combined tax rate: Gallon rate: $0.242188 or Barrel rate: $7.507813

Malt Beverage produced/distributed by a Native Brewery is taxed at:

             1)  Gallonage tax: $0.241935 per gallon or $7.50 per barrel , AND
             2)  Enforcement/Inspection tax:  not applicable
             3)  Combined tax rate: Gallon rate: $0.241935 or Barrel rate: $7.50

Malt Beverage purchased/distributed by a Distributor/Wholesaler (non-Native Brewery) is taxed at:

              4)  Gallonage tax: $0.20 per each gallon or $6.20 per barrel ,  AND
              5)  Enforcement/Inspection tax:  not applicable
              6)  Combined tax rate: Gallon rate: $0.20 or Barrel rate: $6.20

Hard Cider produced/distributed by a Native Brewery is taxed at:

1)  Gallonage tax: $0.241935 per gallon or $7.50 per barrel, AND
2)  Enforcement/Inspection tax:  not applicable
3)  Combined tax rate: Gallon rate: $0.241935 per gallon or $7.50 per barrel

Hard Cider purchased/distributed by a Distributor/Wholesaler (non-Native Brewery) is taxed at:

4) Gallonage tax: $0.234375 per gallon or $7.265625 per barrel, AND
5) Enforcement/Inspection tax: $0.007813 per gallon or $0.242188 barrel.
6) Combined tax rate: Gallon rate: $0.242188 or Barrel rate: $7.507813

Applicable statutes: AR Code Ann. §3-7-101 et seq. (Gallonage and Enforcement/Inspection Taxes)
                                                         §3-5-1401 et seq. (Native Brewery Taxes)

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