On February 15, 2007, Arkansas Governor Mike Beebe signed into law Senate Bill 185 which reduces the state sales and use tax rate on food and food ingredients from 6% to 3%, effective July 1, 2007. The 3% state rate includes a new 2-7/8% statutory rate plus the 1/8% constitutional rate. The term “food and food ingredients” includes any substances, whether in liquid, concentrate, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. The definition does not include alcoholic beverages, tobacco, dietary supplements, or prepared foods. Food and food ingredients continue to be subject to any applicable local sales and use tax. Further rules and regulations apply. (Act 110, S.B. 185, Laws 2007)