Opinion ID: 2395330
Heading Depth: 1
Heading Rank: 4

Heading: The decal tax

Text: The motor fuel tax law requires those subject to it to pay a tax on fuel used in Arkansas even though it may have been purchased outside the state. By purchasing the decal for $10.00, one becomes a bonded fuel user and may pay the fuel tax quarterly rather than pay it at the border each time the user leaves the state. A user who does not leave the state need not buy the decal because the tax will always be paid at the pump. ATA argues, and the chancellor found it probably would succeed in showing, that the decal requirement, in practice, requires interstate truckers to pay more because it is their only viable option. In American Trucking Associations v. Gray, 295 Ark. 43, 746 S.W.2d 377 (1988), we held a flat tax unconstitutional despite the fact that both Arkansas based and non-Arkansas based truckers had the option of paying it or paying a per mile tax. Again, we cannot say the chancellor abused her discretion with respect to this decal tax, the impact of which may be the same as that of a flat tax.