1. (a) Tax rate for LNG.

   1. (1) The tax rate applied to sales and use of LNG shall be measured per gasoline gallon equivalent (five and thirty-seven-hundredths pounds (5.37 lbs.)) as set forth in 26 CAR § 168-102(4).

   2. (2) The tax rate imposed for each gasoline gallon equivalent of LNG:

      1. (A) Depends on the number of motor vehicles licensed in Arkansas using LNG; and
      2. (B) Shall be in accordance with the:

2. (i) Number of licensed motor vehicles using LNG; and

   1. (ii) Corresponding tax rates as set forth in the table contained in Arkansas Code § 26-62-201(b).
   2. (3) The tax rate imposed should be the gasoline gallon equivalent regardless of whether LNG is used in lieu of gasoline or diesel fuel.

3. (b) Exempt alternative fuels sales, uses, or storage.

   1. (1) Sales to or use by the United States Government or any agency or instrumentality thereof.
   2. (2) Liquefied natural gas imported into this state in the fuel supply tanks, including any additional containers, of motor vehicles being used solely for noncommercial purposes if the aggregate capacity of the fuel supply tanks, including any additional containers, does not exceed thirty (30) equivalent gallons.
   3. (3) No other exemptions apply.

Codification Notes: “LNG” means liquefied natural gas.