Act 87 of 2007 amended Ark. Code Ann. § 26-52-401 (11)(A) by eliminating the local and state use tax on dyed distillate diesel fuel, and initiating a 6 cents per gallon excise tax effective July 1, 2007.
The purpose of this commissioner’s memo is to advise school districts that the districts are eligible to use dyed distillate commonly referred to as “off road diesel” for the school districts’ busses. This fuel is exempt from federal taxes and will be exempt from state and local tax, with the exception of the excise tax, on July 1, 2007. The use of this fuel would be a marked savings to school districts over regular priced diesel fuel.