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 64 - WHOLESALE SALES TAX ON FUEL (§§ 26-64-101 — 26-64-104) › Section 26-64-102 - Wholesale sales tax on distillate special fuel - Definitions

(a)
As used in this section:
(1)
"Average wholesale selling price" means the United States Gulf Coast regular average wholesale selling price of distillate special fuel as published in an index by the United States Energy Information Administration or some other similar reliable index if the index published by the United States Energy Information Administration is no longer available; and
(2)
"Distillate special fuel" means the same as defined in §
26-56-102
, except that it does not include distillate special fuel used for off-road purposes as identified in §
26-56-224
.
(b)
In addition to the taxes levied in §§
26-56-201
,
26-56-502
, and
26-56-601
, there is levied a wholesale sales tax upon the average wholesale selling price of distillate special fuel at the rate determined under this section.
(c)
(1)
On or before October 1, 2019, the Secretary of the Department of Finance and Administration shall determine the rate of the wholesale sales tax levied under this section by multiplying the twelve-month average wholesale selling price of distillate special fuel for the period of January 1, 2018, through December 31, 2018, by two and nine-tenths percent (2.9%).
(2)
The wholesale sales tax rate determined under this subsection is effective for the period of October 1, 2019, through September 30, 2020.
(3)
To make the collection of the wholesale sales tax levied under this subsection more efficient, the secretary shall convert the wholesale sales tax calculated under subdivision (c)(1) of this section to a cent-per-gallon amount rounded to the nearest one-tenth of one cent (0.1¢).
(d)
(1)
Beginning July 1, 2020, and each July 1 thereafter, the secretary shall calculate the wholesale sales tax levied under this section by multiplying the twelve-month average wholesale selling price of distillate special fuel for the period of January 1 through December 31 of the immediately preceding year by two and nine-tenths percent (2.9%).
(2)
The wholesale sales tax rate calculated under this subsection is effective for the twelve-month period beginning on October 1 of the year in which the calculation is made under this subsection.
(3)
To make the collection of the wholesale sales tax levied under this subsection more efficient, the secretary shall convert the wholesale sales tax calculated under subdivision (d)(1) of this section to a cent-per-gallon amount rounded to the nearest one-tenth of one cent (0.1¢).
(4)
(A)
If the twelve-month average wholesale selling price calculated in subdivision (d)(1) of this section is more than the twelve-month average wholesale selling price of the year preceding that calculation, the secretary shall convert the resulting wholesale sales tax to a cent-per-gallon amount rounded to the nearest one-tenth of one cent (0.1¢).
(B)
If the wholesale sales tax rate calculated in subdivision (d)(1) of this section would result in an increase in the wholesale sales tax of more than one-tenth of one cent (0.1¢) per gallon of distillate special fuel when converted to a cent-per-gallon amount and rounded to the nearest one-tenth of one cent (0.1¢), the percentage used in the calculation of the wholesale sales tax rate under subdivision (d)(1) of this section shall be limited to the highest percentage that results in a cent-per-gallon amount that does not exceed one-tenth of one cent (0.1¢) for that twelve-month period when rounded to the nearest one-tenth of one cent (0.1¢).
(5)
If the twelve-month average wholesale selling price used for the calculation in subdivision (d)(1) of this section is less than the twelve-month average wholesale selling price of the preceding year, the calculation under subdivision (d)(1) of this section shall not be made, and the wholesale sales tax rate for the twelve-month period beginning October 1 shall be equal to the wholesale sales tax rate for the immediately preceding twelve-month period.
(e)
The wholesale sales tax levied under this section shall be paid by distillate special fuel dealers to distillate special fuel suppliers, who shall collect, report, and remit the tax in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of distillate special motor fuel taxes levied in Title 26, Chapter 56, of the Arkansas Code.
(f)
By August 1 of each year, the Department of Finance and Administration shall publish the cent-per-gallon wholesale sales tax to be collected by distillate special fuel dealers and paid to distillate special fuel suppliers beginning on October 1 of each year under this section and shall notify distillate special fuel dealers and distillate special fuel suppliers of the published amount.
Added by Act 2019, No. 416,§ 6, eff. 10/1/2019.