Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Rule 006.05.14-002 - Alternative Fuel Tax/Liquefied Natural Gas (LNG) Rule

Current through Register Vol. 49, No. 6, June, 2024
Pursuant to the authority granted by Ark. Code Ann. §§
								26-18-301 and
				26-62-104, the
				Director of the Arkansas Department of Finance and Administration does hereby
				promulgate the following rules and regulations for the purpose of facilitating
				compliance with the Alternative Fuels Tax Law, Act 1119 of 1993, as amended,
				and to facilitate the administration, enforcement, and collection of the taxes
				levied by Ark. Code Ann. §
								26-62-101,
el seq.
as it relates to liquefied natural gas (LNG).
A.
Effective Date.
These rules
			 shall be effective from and after September 1, 2014.
B.
Purpose and Scope.
The
			 following rules are promulgated to implement and clarify Title 26. Chapter 62
			 of the Arkansas Code as it pertains to liquefied natural gas (LNG) used as an
			 alternative fuel to generate power in an internal combustion engine or motor
			 for a motor vehicle.
C.
Definitions.
For purposes of these rules, unless otherwise required by
			 their context, the following definitions apply:
1. "Department" means and refers to the
			 Arkansas Department of Finance and Administration and its authorized agents.
			 For purposes of these rules, the terms "Department" and "DFA" may be used
			 interchangeably.
2. "Exempt" refers
			 to those instances of sales, uses, or storage of liquefied natural gas that
			 otherwise would be considered taxable but meet certain express conditions set
			 forth in paragraph E.2. of these rules such that the instances stated therein
			 are free from the tax levied by Ark. Code Ann. §
									26-62-201(a).
			 No other sales, uses, or storage of liquefied natural gas are exempt.
3. "Gallon equivalent" or "equivalent gallon"
			 are terms that may be interchangeably used in regard to describing the
			 appropriate measurement of liquefied natural gas (LNG) for use in an internal
			 combustion engine or as motor fuel. Based on United States standards or
			 industry standards, a gallon equivalent of LNG refers to the regular grade
			 "gasoline gallon equivalent" or "diesel gallon equivalent" of LNG and is
			 measured in pounds. Specifically, one gasoline gallon equivalent (1 dge) of LNG
			 is equivalent to five and thirty-seven/hundredths (5.37) pounds of LNG cooled
			 to approximately -259° Fahrenheit at atmospheric pressure and stored in
			 insulated cryogenic tanks. One diesel gallon equivalent (1 dge) of LNG is the
			 equivalent of six and six/hundredths (6.06) pounds of LNG cooled to
			 approximately -259° Fahrenheit at atmospheric pressure and stored in insulated
			 cryogenic tanks.
4. "Liquefied
			 Natural Gas" or "LNG" means natural gas that has been cooled to a liquid state
			 and is suitable for use. distributed, or used as an alternative fuel for
			 internal combustion engines or motors in motor vehicles. LNG may also include
			 small amounts of products commonly referred to as methane, ethane, propane,
			 butane, heavier alkanes. and nitrogen.
5. "Taxpayer" refers to the person
			 responsible for remitting the taxes due to the Department pursuant to the
			 Alternative Fuels Tax Law.