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 62 - ALTERNATIVE FUELS TAX (§§ 26-62-101 — 26-62-214) › Subchapter 2 - RATES, LICENSES, AND RECORDS (§§ 26-62-201 — 26-62-214) › Section 26-62-201 - Imposition of tax - Exemptions

(a)
(1)
There is hereby levied and imposed an excise tax per gallon equivalent at the rate set forth in subsection (b) of this section on each type of alternative fuels sold or used in this state for the purpose of propelling a motor vehicle or motor vehicles in this state or purchased for sale or use in this state for the purpose of propelling a motor vehicle or motor vehicles in this state.
(2)
The Secretary of the Department of Finance and Administration shall determine the various types of alternative fuels being utilized in this state and the applicable rates to be imposed for each type of fuel in accordance with the following provisions of this section, provided that the secretary in his or her initial determination at a minimum shall find at least one (1) type of alternative fuels, specifically, natural gas fuels.
(b)
The tax rate for each equivalent gallon for each type of alternative fuels shall be in accordance with the following table:
Number of Motor Vehicles Licensed in Arkansas Utilizing Alternative Fuels (for each type of alternative fuels)
Tax Rate Per Equivalent Gallon (for each type of alternative fuels)
0 - 999
$0.050
1,000 - 1,499
$0.085
1,500 - 1,999
$0.105
2,000 - 2,499
$0.125
2,500 - 2,999
$0.145
3,000 & over
$0.165
(c)
(1)
(A)
The tax rate set forth in subsection (b) of this section for each type of alternative fuels shall be adjusted if necessary by the secretary on April 1 of each year based upon the number of vehicles utilizing alternative fuels, by each type of alternative fuels, licensed in this state, as determined by the secretary, as of December 31 of the preceding calendar year.
(B)
If a change in the tax rate in accordance with subsection (b) of this section for any type of alternative fuels is required, the secretary shall include this in the report required by this section, and the secretary shall also notify each alternative fuels supplier of the new tax rate not later than thirty (30) days prior to the effective date of such change.
(2)
Notwithstanding any other provision of this chapter, in determining the number of alternative fuels vehicles licensed in this state by each type of alternative fuels in order to determine the tax rate per equivalent gallon, there shall not be taken into account any alternative fuels vehicles owned, licensed, or used by the United States Government, or any agency or instrumentality thereof.
(d)
It is the intent of the tax levy set forth in this section to tax each particular type of alternative fuels depending upon the number of alternative fuels vehicles using the particular type of alternative fuels licensed in Arkansas.
(e)
(1)
The secretary may develop a procedure in which the type of alternative fuels or other type of fuel is noted on the certificate of title or certificate of registration of an alternative fuels vehicle.
(2)
It is the intention of this subsection to develop a system for the secretary and other officials of the State of Arkansas to know the precise number of vehicles using alternative fuels and other fuels licensed in this state, both in the aggregate and by the type of fuel propelling the vehicles.
(f)
Not later than February 15 each year, the secretary shall file a written report with the Director of State Highways and Transportation setting forth the number of vehicles using alternative fuels and other types of fuels licensed in this state as of the end of the preceding calendar year, both in the aggregate and by each type of fuel, and the amount of tax revenue received by the State of Arkansas on the tax levied by this chapter. The secretary shall also state the tax rate for the next twelve (12) months, beginning as of the first day of April of each year for each type of alternative fuel.
(g)
Sales to the United States Government are exempt from the tax levied by subsection (a) of this section.
(h)
The tax levied herein shall not apply to alternative fuels imported into this state in the fuel supply tanks, including any additional containers, of motor vehicles being used solely for noncommercial purposes if the aggregate capacity of the fuel supply tanks, including any additional containers, does not exceed thirty (30) equivalent gallons.
Amended by Act 2019, No. 910,§ 4308, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4307, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4306, eff. 7/1/2019.
Acts 1993, No. 1119, § 9; 2009, No. 655, § 106.