Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 5 - STATE TAXES (§§ 26-50-101 — 26-65-108) › Chapter 56 - SPECIAL MOTOR FUELS TAXES (§§ 26-56-101 — 26-56-804) › Subchapter 2 - DISTILLATE SPECIAL FUELS (§§ 26-56-201 — 26-56-232) › Section 26-56-214 - Interstate users - Reports - Computation of tax and refunds

(a)
Whenever an interstate user of distillate special fuel who is a bonded user of distillate special fuel in all states in which he or she operates has exportations in excess of importations of tax-paid distillate special fuel in the fuel supply tanks of motor vehicles which distillate special fuel was delivered by a supplier into bulk storage facilities of the user within the State of Arkansas, the supplier may make a refund or allow a credit for the amount of the tax upon the excess upon approval by the Secretary of the Department of Finance and Administration of a statement from the user to the effect that the tax-paid distillate special fuel was exported.
(b)
(1)
For the purpose of determining whether an interstate distillate special fuel user owes special motor fuel tax or is entitled to a credit or refund, the licensed interstate distillate special fuel user shall file a quarterly report on or before the last day of the month following the end of each calendar quarter.
(2)
If it shall be determined by the quarterly report that the interstate user has used distillate special fuel in this state in excess of the number of gallons of the distillate special fuel upon which the Arkansas tax had been paid, the interstate user shall remit to the secretary, at the time of filing the report, an excise tax of eighteen and one-half cents (181/2¢) per gallon of the excess gallonage used.
(3)
If it shall be determined that the interstate user has purchased more gallons of distillate special fuel in this state than he or she has used in this state, then the interstate user shall be entitled to a credit or refund of eighteen and one-half cents (181/2¢) per gallon of the excess gallonage purchased in the state.
(c)
The quarterly report required by this subchapter shall be filed on or before the last day of the month following the end of each calendar quarter and shall be made on forms prescribed by the secretary and shall include such information as the secretary may require.
(d)
(1)
For the purpose of determining whether a distillate special fuel user owes tax or is entitled to a credit or refund as provided in subsection (b) of this section, the distillate special fuel user shall file with the secretary a report showing the quantities of special motor fuels used in this state during the preceding calendar quarter. This report shall be due on or before the last day of the month following the end of each calendar quarter.
(2)
If it shall be determined by the quarterly report filed with the secretary that the distillate special fuel user has used more gallons of special motor fuel in this state than the special motor fuel tax due thereon has been paid, the distillate special fuel user shall remit to the secretary an excise tax of eighteen and one-half cents (181/2¢) per gallon of special motor fuel.
(3)
Distillate special fuel users may not take credit on reports at a tax rate in excess of that actually paid.
(e)
(1)
For the purpose of determining whether a distillate special fuel user owes tax or is entitled to a credit or refund, the distillate special fuel user shall determine the average miles per gallon of fuel used. The average miles per gallon shall be determined by dividing total miles traveled in all jurisdictions by the total gallons of fuel used in all jurisdictions. The distillate special fuel user shall then determine the total amount of fuel used within the State of Arkansas by dividing the total number of miles traveled within the State of Arkansas by the average miles per gallon.
(2)
The number of gallons of distillate special fuels upon which the tax has been paid by an interstate user shall be determined from the form obtained by the interstate user from a dealer or licensed bulk supplier on forms containing information prescribed by §
26-56-209
.
(3)
The taxpayer's tax liability shall be calculated by multiplying the number of gallons of fuel used within the State of Arkansas by eighteen and one-half cents (181/2¢) per gallon. A taxpayer shall be entitled to credits against his or her tax liability for tax-paid fuel purchased within the State of Arkansas.
(f)
(1)
Any licensed interstate user who fails to maintain adequate mileage or fuel records, for the purpose of determining the amount the interstate user owes the State of Arkansas for tax on distillate special fuel used in this state as provided in this section, the number of gallons of distillate special fuel used in this state shall be determined by an assessment based on the following mileage factors per gallon of distillate special fuel as compared to the appropriate class of vehicle set out in subdivision (f)(2) of this section.
(2)
For the purposes of this section:
(A)
All automobiles, except buses, with a capacity of less than eight (8) passengers shall be deemed to be Class A vehicles;
(B)
All truck-type vehicles, except buses, with a factory rating and gross loaded weight of less than twenty-two thousand five hundred pounds (22,500 lbs.) shall be deemed to be Class B vehicles;
(C)
All other vehicles, except buses, with a factory rating in excess of twenty-two thousand five hundred pounds (22,500 lbs.), or whose total gross loaded weight exceeds twenty-two thousand five hundred pounds (22,500 lbs.), shall be deemed to be Class C vehicles; and
(D)
All buses rated and licensed as such shall be deemed to be Class D vehicles.
(3)
The mileage factor per gallon of distillate special fuel for:
(A)
Class A vehicles shall be twelve (12) miles;
(B)
Class B vehicles shall be eight (8) miles;
(C)
Class C vehicles shall be five (5) miles; and
(D)
Class D vehicles shall be six (6) miles.
(4)
These mileage factors shall be utilized in conjunction with the Arkansas mileage as determined through an audit and based upon the best records available regardless of source.
(g)
For the purposes of determining the amount any unlicensed or unbonded user owes the State of Arkansas for tax on distillate special fuel used in this state, only the above mileage factors per gallon of distillate special fuel for the applicable vehicles shall be utilized.
(h)
(1)
If a quarterly report of a distillate special fuel user results in a net credit, the distillate special fuel user may elect to have the credit carried forward and applied against the special motor fuel tax due for the succeeding eight (8) quarters or until the credit is completely used, whichever occurs first. In the alternative, a taxpayer who is entitled to a net credit on his or her quarterly fuel use tax report may elect to have the amount of credit refunded to him or her.
(2)
A distillate special fuel user who has a total tax liability for special motor fuel tax during the previous calendar year of less than one hundred dollars ($100) upon application to the secretary may obtain permission to report his or her motor fuel tax liability on an annual basis. The annual report shall be due on or before the last day of the month following the end of each fiscal year.
(i)
(1)
The secretary shall prescribe the appropriate forms necessary for the administration of this subchapter.
(2)
The secretary may make appropriate rules necessary to ensure the accurate reporting of the special motor fuel tax.
Amended by Act 2019, No. 315,§ 3024, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 4049, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4048, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4047, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4046, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4045, eff. 7/1/2019.
Acts 1965 (1st Ex. Sess.), No. 40, ch. 2, § 11; 1967, No. 357, §§ 4, 9; 1968 (1st Ex. Sess.), No. 35, § 1; 1977, No. 354, § 1; 1979, No. 764, § 2; A.S.A. 1947, §§ 75-1187, 75-1251, 75-1251n; Acts 1987, No. 803, §§ 5, 7; 1991, No. 364, § 3; 1991, No. 382, § 3; 1995, No. 777, § 8.