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SB 605

TO CREATE THE DELTA TETRAHYDROCANNABINOL EXCISE TAX ACT; AND TO TAX DELTA TETRAHYDROCANNABINOL PRODUCTS.

2025 Regular Session Introduced by Brandon Achor and 1 co-sponsor

Senate Bill 605 proposed a 50% excise tax on delta tetrahydrocannabinol products in Arkansas, impacting prices for consumers and requiring compliance from retailers.

Died in House Committee at Sine Die adjournment.
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Bill Summary · SB 605

Summary of Senate Bill 605: Delta Tetrahydrocannabinol Excise Tax Act

Purpose and Intent

Senate Bill 605, titled the Delta Tetrahydrocannabinol Excise Tax Act, was introduced to establish an excise tax on products containing delta tetrahydrocannabinol (THC) in the state of Arkansas. The bill aimed to regulate the sale of these products and generate revenue for the state.

Key Provisions

The bill proposed several significant changes to the Arkansas Code, specifically adding a new subchapter under Title 26, Chapter 57:

  1. Definition of Delta Tetrahydrocannabinol Products:

    • The bill defined "Delta tetrahydrocannabinol product" to include various forms of THC, including delta-8, delta-9, and delta-10 tetrahydrocannabinol, among others. It specified that these products must not exceed 0.3% delta-9 THC on a dry weight basis and must not be FDA-approved medications.

  2. Excise Tax Rate:

    • An excise tax of 50% was to be levied on the gross receipts from the sale of delta tetrahydrocannabinol products. Sellers would be responsible for collecting and remitting this tax.

  3. Administration and Compliance:

    • The bill outlined that the excise tax would be administered similarly to existing sales taxes under the Arkansas Gross Receipts Act. It also allowed the Secretary of the Department of Finance and Administration to promulgate rules for enforcement and compliance.

  4. Effective Date:

    • The provisions of the bill were set to take effect on the first day of the second calendar month following its enactment.

Affected Parties

The legislation would primarily impact:
- Retailers and Manufacturers: Businesses selling delta tetrahydrocannabinol products would need to comply with the new tax requirements.
- Consumers: The excise tax could lead to higher prices for delta tetrahydrocannabinol products, affecting consumer purchasing decisions.

Legislative Timeline

  • Introduced: April 1, 2025
  • Senate Actions:
    • Passed by the Senate on April 7, 2025, after being reported correctly engrossed and amended.
    • Amendment #1 added Representative Achor as a cosponsor.
  • House Actions:
    • Received in the House on April 7, 2025, and referred to the Committee on Revenue & Taxation.
    • Died in House Committee at Sine Die adjournment on May 5, 2025.

Conclusion

Senate Bill 605 sought to impose a significant excise tax on delta tetrahydrocannabinol products in Arkansas, aiming to regulate the market and generate state revenue. However, the bill ultimately did not progress past the House Committee stage and was not enacted into law.

Compiled from official sources — confirm details with the bill’s official record.

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