Arkansas: Fuel Excise Taxes
Arkansas Cigarette and Fuel Excise Taxes
In addition to (or instead of) traditional sales taxes, gasoline and other Fuel products are subject to excise taxes on both the Arkansas and Federal levels. Excise taxes on Fuel are implemented by every state, as are excises on alcohol and tobacco products.
Arkansas Gasoline Tax
| Excise: | $0.22 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.22 / gallon |
Arkansas Diesel Tax
| Excise: | $0.23 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.23 / gallon |
Arkansas Gasohol Tax
| Excise: | $0.22 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.22 / gallon |
† Additional Applicable Taxes: Environmental fee
Other Arkansas Fuel Excise Tax Rates
The primary excise taxes on fuel in Arkansas are on gasoline, though most states also tax other types of fuel.
Arkansas Aviation Fuel Tax
In Arkansas, Aviation Fuel is subject to a state excise tax of 6.5% State Sales and Use Tax plus local sales and use tax based on point of Delivery
Point of Taxation: Final Consumer- subject to Arkansas Sales and Use Tax not Motor Fuel Tax
Arkansas Dyed Diesel: Tax
In Arkansas, Dyed Diesel: is subject to a state excise tax of .06 per gallon
Point of Taxation: First Receiver Below the Rack
Arkansas Jet Fuel Tax
In Arkansas, Jet Fuel is subject to a state excise tax of 6.5% State Sales and Use Tax plus local sales and use tax based on point of delivery
Point of Taxation: Final Consumer- subject to Arkansas Sales and Use Tax not Motor Fuel Tax
Payment of Arkansas Fuel Excise Taxes
Payments of fuel excise taxes are made by fuel vendors, not by end consumers, though the taxes will be passed on in the fuel's retail price. Fuel tax is due the 20th or 25th of each month for the last month's taxes.
Arkansas Fuel Tax Reports
Fuel producers and vendors in Arkansas have to pay fuel excise taxes, and are responsible for filing various fuel tax reports to the Arkansas government. Click the button below to view details on three AR fuel tax reports.
View Fuel Tax ReportsDyed Diesel Tax
Report Due: 20 th of following month
Report Penalties: 5 percent per month with a maximum of 35 percent
Payment Due: 20 th of following month
ReportPenalties: 5 percent per month with a maximum of 35 percent
PaymentPenalties: 5 percent per month with a maximum of 35 percent
Motor Fuel Tax Return
Report Due: 25 of following month
Report Penalties: 5 percent per month with a maximum of 35 percent
Payment Due: 25 of following month
ReportPenalties: 5 percent per month with a maximum of 35 percent
PaymentPenalties: 5 percent per month with a maximum of 35 percent
Natural Gas Fuel
Report Due: 25 th of following month
Report Penalties: 5 percent per month with a maximum of 35 percent
Payment Due: 25 th of following month
ReportPenalties: 5 percent per month with a maximum of 35 percent
PaymentPenalties: 5 percent per month with a maximum of 35 percent
Federal Fuel Excise Taxes
The price of all motor fuel sold in Arkansas also includes Federal motor fuel excise taxes, which are collected from the manufacturer by the IRS and are used to support the Federal Highway Administration. Federal excise tax rates on various motor fuel products are as follows:
| Gasoline | $0.18.4 per gallon |
|---|---|
| Diesel and Kerosene | $0.242 per gallon |
| Liquefied Petroleum Gas | $0.183 per gallon † |
| Liquefied Natural Gas (LNG) | $0.243 per gallon † |
| Compressed Natural Gas (CNG) | $0.184 per gallon † |
Included in the Gasoline, Diesel/Kerosene, and Compressed Natural Gas rates is a 0.1 ยข per gallon charge for the Leaking Underground Storage Tank Trust Fund (LUST).
† These tax rates are based on energy content relative to gasoline.
What percentage of the cost of gas in Arkansas comes from taxes and gas station profit?
The diagram above shows how the prices of an average gallon of gasoline and diesel fuel are broken down among various components, including the cost of the crude oil, refining, distribution / marketing, and taxes. In most areas, state and federal excise taxes amount to about 13% of the cost of a gallon of gas. Gas stations generally only profit a few cents per gallon.
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