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 26-56-201 - Imposition of tax - Exemptions

(a)
(1)
(A)
(i)
There is levied an excise tax at the rate of eight and one-half cents (81/2¢) per gallon on all distillate special fuel sold or used in this state or purchased for sale or use in this state.
(ii)
In addition to the tax levied in subdivision (a)(1)(A)(i) of this section, there is levied an excise tax at the rate of one cent (1¢) per gallon on all distillate special fuel sold or used in this state or purchased for sale or use in this state.
(B)
The additional levies provided in subdivision (a)(2) of this section and §
26-56-502
are specifically intended to apply to the taxes levied by this section and shall remain effective.
(2)
In addition to the tax levied in subdivision (a)(1) of this section, there is levied an excise tax of one cent (1¢) for each gallon of distillate special fuel, as defined in §
26-56-102
, sold or used in this state, or purchased for sale or use in this state, to be computed in the manner set forth in this section.
(b)
The following are exempted from the tax levied by subsection (a) of this section:
(1)
Sales to the United States Government;
(2)
Sales to dealers, users, or off-road consumers for off-road use only if the distillate special fuel was delivered by the supplier into storage facilities clearly marked "NOT FOR MOTOR VEHICLE USE";
(3)
Sales of distillate special fuel by a licensed supplier for export from the State of Arkansas when shipped by common carrier FOB destination to any other state or territory or to any foreign country, or the export of distillate special fuel by a licensed supplier from the State of Arkansas to any other state or territory or to any foreign country, if satisfactory proof of actual exportation of all the distillate special fuel is furnished at the time and in the manner prescribed by the Secretary of the Department of Finance and Administration;
(4)
Sales of distillate special fuel by a pipeline importer who has first received the distillate special fuel in this state or to a licensed first receiver in this state; and
(5)
Sales of distillate special fuel utilized in propelling jet aircraft.
(c)
A licensed first receiver shall not sell untaxed distillate special fuel to another licensed first receiver or pipeline importer, unless a specific exemption is available under subsection (b) of this section.
(d)
(1)
In addition to the taxes levied on distillate special fuel in this section and §
26-56-502
, there is levied an additional excise tax of four cents (4¢) per gallon upon all distillate special fuel subject to the taxes levied in this section and §
26-56-502
.
(2)
This additional excise tax shall be levied, collected, reported, and paid in the same manner and at the same time as is prescribed by law for the levying, collection, reporting, and payment of the other distillate special fuel taxes under Arkansas law.
(e)
(1)
(A)
In addition to the taxes levied on distillate special fuel in this section and §§
26-56-502
and
26-56-601
, there is levied an excise tax of two cents (2¢) per gallon upon all distillate special fuel subject to the taxes levied in this section and §§
26-56-502
and
26-56-601
.
(B)
Effective one (1) year after April 1, 1999, the additional tax levied by this subsection shall be increased by an additional two cents (2¢) per gallon.
(2)
This additional excise tax shall be levied, collected, reported, and paid in the same manner and at the same time as is prescribed by law for the levying, collection, reporting, and payment of the other distillate special fuel taxes under Arkansas law.
(3)
The additional tax levied by this subsection shall be taken into consideration and used when calculating tax credits or additional tax due under §
26-56-214
.
(f)
The additional taxes collected under this section are special revenues and shall be distributed as set forth in the Arkansas Highway Revenue Distribution Law, §
27-70-201
et seq., subject to any requirements for the repayment of bonds issued under the Arkansas Highway Financing Act of 1999, §
27-64-201
et seq., the Arkansas Interstate Highway Financing Act of 2007, §
27-64-401
et seq., and the Arkansas Highway Financing Act of 2011, §
27-64-501
et seq.
(g)
The taxes collected under subdivision (a)(1)(A)(ii) of this section shall be distributed as provided in §
26-56-221
.
Amended by Act 2019, No. 910,§ 4027, eff. 7/1/2019.
Amended by Act 2016EX3, No. 1,§ 17, eff. 7/1/2017.
Amended by Act 2016EX3, No. 1,§ 16, eff. 7/1/2017.
Acts 1965 (1st Ex. Sess.), No. 40, ch. 2, § 1; 1967, No. 357, § 1; 1973, No. 445, § 1; 1979, No. 437, § 2; A.S.A. 1947, §§ 75-1241, 75-1269; Acts 1987, No. 985, §§ 6, 7; 1987 (1st Ex. Sess.), No. 20, §§ 1, 4-6; 1989, No. 821, § 10; 1991, No. 219, § 3; 1993, No. 618, §§ 2, 3; 1997, No. 1212, § 3; 1999, No. 1028, §§ 2, 4; 2005, No. 685, § 2; 2007, No. 511, § 2; 2011, No. 773, § 1; 2011, No. 788, § 12.