Starting today, drivers in Arkansas will be paying more at the pump for their fuel.
During the 92nd General Assembly session, Arkansas lawmakers passed Act 416 of 2019, which increased the wholesale sales tax on both motor fuel and diesel for one year. Drivers will be paying taxes of three cents for gasoline and six centers on diesel during the one-year period.
According to the act, the wholesale sales tax rate is determined by multiplying the twelve-month average of motor fuel prices between Jan. 1, 2018 through Dec. 31, 2018 by 1.6 percent. This sales tax rate will be applied for one year, from Oct. 1, 2019 through Sept. 30, 2020.
In 2018, the average sales prices for gasoline was $1.864, according to the Arkansas Department of Finance and Administration. Meanwhile, the average sales price for diesel was $2.071.
In addition, there will be additional fees for hybrid and electric vehicles. There will be a $200 fee to register an electric vehicle, and a $100 registration fee for each hybrid vehicle.
The increase in whole fuel sales tax is designed to provide revenue for the maintenance and repair of Arkansas’ state highways.
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