§ 26-56-201 - Imposition of tax -- Exemptions. - Arkansas Statutes

26-56-201. Imposition of tax -- Exemptions.

(a) (1) (A) There is levied an excise tax at the rate of nine and one-half cents (91/2cent(s)) per gallon on all distillate special fuel, except fuel utilized in propelling jet aircraft, 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 (1cent(s)) 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 if and only if the 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 f.o.b. 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, provided that satisfactory proof of actual exportation of all such distillate special fuel is furnished at the time and in the manner prescribed by the Director 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 for other than motor vehicle use in quantities of sixty gallons (60 gals.) or less.

(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 (4cent(s)) 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 (2cent(s)) 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 (2cent(s)) 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 pursuant to this section shall be considered 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., and the Arkansas Interstate Highway Financing Act of 2007, 27-64-401 et seq.