Arkansas

Alternative Fuels Tax

Excise taxes on alternative fuels are imposed on a gasoline gallon equivalent basis. The tax rate for each type of alternative fuel is based on the number of motor vehicles licensed in the state that use each fuel type. (Reference Arkansas Code 26-62-201)

Natural Gas Metering

No user, including an alternative fuel supplier of natural gas fuels, who utilizes natural gas for residential or other tax-free purposes, is permitted to use natural gas fuel in motor vehicles unless the natural gas fuel is removed through a separate meter installed by the alternative fuels supplier for such purposes. (Reference Arkansas Code 26-62-203)

Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) User Permit

Any user of LNG or LPG to operate a vehicle must apply for and obtain a liquefied gas special fuel user's permit for each vehicle owned and operating on LNG or LPG. Applications must be submitted to the Director of the Arkansas Department of Finance and Administration. (Reference Arkansas Code 26-56-304)

Alternative Fuel Vehicle (AFV) Conversion

Any individual or company who converts an AFV to operate on an alternative fuel must report the conversion to the Director of the Arkansas Department of Finance and Administration within 10 days of the conversion. An owner or operator who fails to report such a conversion may be subject to a penalty. (Reference Arkansas Code 26-62-214)