Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: S2/27/25 H4/7/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 SENATE BILL 238
4
5 By: Senator J. Payton
6 By: Representative Gonzales
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE USED TIRE RECYCLING AND
10 ACCOUNTABILITY ACT; AND FOR OTHER PURPOSES.
11
12
13 Subtitle
14 TO AMEND THE USED TIRE RECYCLING AND
15 ACCOUNTABILITY ACT.
16
17 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
18
19 SECTION 1. Arkansas Code � 8-9-404, concerning rim removal fees,
20 import fees, and commercial generator fees under the Used Tire Recycling and
21 Accountability Act, is amended to read as follows:
22 8-9-404. Rim removal Tire recycling fees -- Import fees -- Commercial
23 generator fees -- Definitions Definition.
24 (a)(1) There is imposed a rim removal fee upon the transaction of
25 removing a tire from a rim that is related to the sale of a replacement tire
26 by a tire retailer.
27 (2) The rim removal fee shall be charged by the tire retailer to
28 a person who:
29 (A) Purchases a replacement tire for a rim that
30 necessitates the removal of a different tire from the same rim; or
31 (B) Purchases the service of removal of a tire from a rim
32 and replacement with a tire that was not purchased from the tire retailer if
33 the person requesting the rim removal cannot show proof of payment of the rim
34 removal fee under this section for the replacement tire.
35 (3)(A) The rim removal fee shall be imposed at the rate of three
36 dollars ($3.00) for each new tire that replaces a tire removed from a rim and
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1 one dollar ($1.00) for each used tire that replaces the tire removed from the
2 rim.
3 (B) Except for the rim removal fees imposed under this
4 section, a tire retailer shall not charge any other fee to a person who
5 purchases the service of removal of a tire from a rim.
6 (C) For any tires collected by a tire retailer, the tire
7 retailer shall ensure that the tires are transported by a licensed tire
8 transporter to a permitted tire collection center, a solid waste management
9 facility, a tire processing facility, or another tire retailer.
10 (D) The tire retailer shall account for each tire removed
11 from a rim in the manner prescribed by the Department of Finance and
12 Administration.
13 (E) Each tire retailer shall register with the department
14 and comply with all requirements related to collecting and reporting rim
15 removal fees.
16 (4) The rim removal fees imposed under this section shall be
17 added to the total cost charged by the tire retailer to the purchaser after
18 all applicable gross receipts or compensating use taxes on the tires have
19 been computed and shall be separately stated on the invoice or bill of sale.
20 (5)(A) The rim removal fees imposed under this section shall be
21 paid monthly to the Secretary of the Department of Finance and
22 Administration.
23 (B) However, the tire retailer may retain five percent
24 (5%) of the rim removal fee imposed under subdivision (a)(3)(A) of this
25 section for administrative costs.
26 (6)(A) The rim removal fees remitted under subdivision (a)(5)(A)
27 of this section shall be collected by the secretary and shall be subject to
28 the Arkansas Tax Procedure Act, � 26-18-101 et seq. and the business closure
29 procedures under � 26-18-1001 et seq.
30 (B)(i) Each tire retailer shall file a return with the
31 secretary on or before the twentieth of each month.
32 (ii) The return shall show the total rim removal fees
33 collected for each tire removed from the rim during the preceding calendar
34 month.
35 (iii) The tire retailer shall remit the rim removal
36 fees with the return.
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1 (iv) The secretary shall prescribe the form and
2 contents of the return.
3 (a)(1)(A)(i) A tire recycling fee of three dollars ($3.00) is imposed
4 for each new small tire sold by a tire retailer in Arkansas, including
5 without limitation new small tires sold as part of fleet services.
6 (ii) A tire retailer may charge a fee of up to ten
7 percent (10%) over the tire recycling fee for each new small tire sold by the
8 tire retailer and retain the excess over the tire recycling fee to cover
9 administrative costs of the tire retailer.
10 (B) A tire retailer shall obtain a tire recycling account
11 number from the Department of Finance and Administration and remit the tire
12 recycling fees collected by the tire retailer to the department on a monthly
13 basis.
14 (C) A tire retailer shall:
15 (i) Track all new small tires sold by the tire
16 retailer; and
17 (ii) Provide an accounting to the department that
18 includes the number and category of new small tires sold in Arkansas.
19 (D) A tire retailer is subject to field audits by the
20 department.
21 (E)(i) If a person or entity brings a new small tire
22 purchased from an entity other than the tire retailer to the tire retailer to
23 be placed on a motor vehicle, the tire retailer shall require the person or
24 entity to pay the tire recycling fee under subdivision (a)(1)(A) of this
25 section unless the person or entity can show that the tire recycling fee was
26 already paid.
27 (ii) The tire retailer shall not collect the tire
28 recycling fee or require proof of payment of the tire recycling fee under
29 subdivision (a)(1)(E)(i) of this section unless the small tire has eighty
30 percent (80%) or more of the small tire's vent spews remaining.
31 (F) No later than the tenth business day of each month, a
32 tire retailer shall submit a report to the department that reflects all new
33 small tires sold by the tire retailer for the previous month and the
34 corresponding tire recycling fees remitted to the department.
35 (2)(A) A tire recycling fee is imposed for each new small tire
36 equipped in or on a new motor vehicle or trailer sold to a purchaser.
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1 (B) The tire recycling fee under subdivision (a)(2)(A) of
2 this section shall be three dollars ($3.00) for each new small tire equipped
3 in or on the new motor vehicle or trailer, including a new small tire used as
4 a spare in or on the new motor vehicle or trailer.
5 (C) Tire recycling fees under subdivision (a)(2)(B) of
6 this section shall be collected by the department at the same time as the new
7 motor vehicle or trailer is registered by the purchaser with the department.
8 (b)(1) The department shall deposit the proceeds from rim removal tire
9 recycling fees collected under subsection (a) of this section into the State
10 Treasury as special revenues to the credit of the following funds in the
11 following percentages:
12 (A) Ninety-three percent (93%) to be deposited into the
13 Used Tire Recycling Fund; and
14 (B) Seven percent (7%), not to exceed the amount deposited
15 in fiscal year 2025, to be deposited into the Division of Environmental
16 Quality Fee Trust Fund.
17 (2) As used in this section, "proceeds from rim removal tire
18 recycling fees" means all moneys collected and received by the department
19 under this section for rim removal tire recycling fees imposed under
20 subsection (a) of this section and interest and penalties on delinquent rim
21 removal tire recycling fees.
22 (c)(1)(A) There is imposed an import fee of one dollar ($1.00) on each
23 used tire that is imported into Arkansas A tire recycling fee may be imposed
24 by a tire retailer on a large tire or an extra-large tire.
25 (2)(A) The amount of the tire recycling fee on a large tire or
26 extra-large tire may not exceed the following fee per tire:
27 (1) For a large tire, five dollars ($5.00); and
28 (ii) For an extra-large tire, thirty dollars
29 ($30.00).
30 (B) A tire retailer may charge a fee of up to ten percent
31 (10%) over the tire recycling fee for a new large tire or a new extra-large
32 tire sold by the tire retailer and retain the excess over the tire recycling
33 fee to cover administrative costs of the tire retailer.
34 (3) The tire recycling fee for a large tire or an extra-large
35 tire may be changed by a tire accountability board only one (1) time per year
36 at the time the business plan for the tire accountability zone is submitted
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1 for the fiscal year.
2 (4)(A) The tire accountability board shall report the proposed
3 tire recycling fee for a large tire or extra-large tire authorized under this
4 subsection to the department by September 30 of each year.
5 (B) The department shall:
6 (i) Average the tire recycling fees proposed by the
7 four (4) tire accountability boards; and
8 (ii) Set a statewide tire recycling fee for a large
9 tire or an extra-large tire that may be charged by the tire retailer under
10 this subsection.
11 (B) A person who imports a used tire shall be registered
12 with the department and comply with all requirements related to collecting
13 and reporting import fees.
14 (2) The import fee imposed under this subsection shall be paid
15 by the person who imports the used tire to the department in accordance with
16 the Arkansas Tax Procedure Act, � 26-18-101 et seq., the business closure
17 procedures under � 26-18-1001 et seq., and any rules promulgated by the
18 department.
19 (3)(A) The department shall deposit the proceeds from import
20 fees imposed under this subsection into the State Treasury as special
21 revenues to the credit of the following funds in the following percentages:
22 (i) Ninety-three percent (93%) to be deposited into
23 the Used Tire Recycling Fund; and
24 (ii) Seven percent (7%) to be deposited into the
25 Division of Environmental Quality Fee Trust Fund.
26 (B) As used in this section, "proceeds from import fees"
27 means all moneys collected and received by the department under this
28 subsection and interest and penalties on delinquent import fees.
29 (d)(1) There is imposed a commercial generator fee upon the
30 transaction of a commercial generator selling or delivering a new tire as
31 part of fleet services The department has exclusive authority and
32 responsibility to audit tire retailers for compliance with this subchapter.
33 (2) The commercial generator fee shall be charged by the
34 commercial generator to a person who in the ordinary course of business is an
35 end user that removes used tires from the rim and replaces them with a new
36 tire.
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1 (3)(A) The commercial generator fee shall be imposed at the rate
2 of three dollars ($3.00) for each new tire that is sold or delivered to an
3 end user that removes used tires from the rim and replaces them with a new
4 tire.
5 (B) Except for the commercial generator fees imposed under
6 this section, the commercial generator shall not charge any other fee to the
7 end user.
8 (C)(i) For any used tires collected by a commercial
9 generator, the first transportation of the used tire from the end user to the
10 commercial generator's facility does not require a licensed tire transporter.
11 (ii) Any subsequent transportation of the used tire
12 by the commercial generator for recycling or disposal requires a licensed
13 tire transporter and shall be accounted for using the electronic uniform used
14 tire manifest system.
15 (D) Each commercial generator shall register with the
16 department and comply with all requirements related to collecting and
17 reporting commercial generator fees.
18 (4) The commercial generator fees imposed under this section
19 shall be added to the total cost charged by the commercial generator to the
20 end user after all applicable gross receipts or compensating use taxes on the
21 tires have been computed and shall be separately stated on the invoice or
22 bill of sale.
23 (5)(A) The commercial generator fees imposed under this section
24 shall be paid monthly to the secretary.
25 (B) However, the commercial generator may retain five
26 percent (5%) of the commercial generator fee imposed under subdivision
27 (d)(3)(A) of this section for administrative costs.
28 (6)(A) The commercial generator fees remitted in subdivision
29 (d)(5)(A) of this section shall be collected by the secretary and shall be
30 subject to the Arkansas Tax Procedure Act, � 26-18-101 et seq. and the
31 business closure procedures under � 26-18-1001 et seq.
32 (B)(i)(a) Each commercial generator shall file a return
33 with the secretary on or before the twentieth of each month.
34 (b) The return shall show the total commercial
35 generator fees collected for each tire sold or delivered to the end user
36 during the preceding calendar month.
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1 (c) The commercial generator shall remit the
2 commercial generator fees with the return.
3 (ii) The secretary shall prescribe the form and
4 contents of the return.
5 (7) The department shall deposit the proceeds from commercial
6 generator fees collected under this subsection into the State Treasury as
7 special revenues to the credit of the following funds in the following
8 percentages:
9 (A) Ninety-three percent (93%) to be deposited into the
10 Used Tire Recycling Fund; and
11 (B) Seven percent (7%) to be deposited into the Division
12 of Environmental Quality Fee Trust Fund.
13 (8) As used in this section, "proceeds from commercial generator
14 fees" means all moneys collected and received by the department under this
15 section for commercial generator fees imposed under this subsection and
16 interest and penalties on delinquent commercial generator fees.
17 (e)(1) It is the purpose and intent of this section that only one (1)
18 of the following fees imposed under this section be charged for the
19 transaction of removing a tire from a rim that is related to the sale of a
20 replacement tire:
21 (A) The rim removal fee; or
22 (B) The commercial generator fee.
23 (2) If a person establishes that he or she has paid one (1) of
24 the fees for a tire, the tire retailer or tire generator shall not charge an
25 additional fee for that tire.
26 This section applies to in-state and out-of-state tire retailers that
27 sell tires within the state.
28 (2) The department shall enforce this section under the Arkansas
29 Tax Procedure Act, � 26-18-101 et seq., and the business closure procedures
30 under � 26-18-1001 et seq.
31
32 SECTION 2. Arkansas Code � 8-9-405(b)(9)(A), concerning the used tire
33 program reimbursements, is amended to read as follows:
34 (9)(A) Establish a minimum of two (2) tire collection centers
35 within each county served by the used tire program that accepts tires from
36 tire retailers at no charge if the tire retailer establishes that it:
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1 (i) Collects the rim removal tire recycling fee
2 imposed under � 8-9-404(a); and
3 (ii) Complies with the electronic uniform used tire
4 manifest system under � 8-9-407.
5
6 SECTION 3. Arkansas Code � 8-9-405(b)(9), concerning the establishment
7 of tire collection centers within each county under the used tire programs,
8 is amended to add an additional subdivision to read as follows:
9 (C) A tire collection center shall be monitored and
10 emptied regularly to allow continuous use of the tire collection center for
11 waste tire disposal; and
12
13 SECTION 4. Arkansas Code � 8-9-410(b)(1), concerning the used tire
14 programs and the tire accountability boards, is amended to read as follows:
15 (b)(1) Each new used tire program is governed by a tire accountability
16 board that is composed of eleven (11) thirteen (13) members:
17 (A) Five (5) county judges, elected by the county judges
18 of the used tire program;
19 (B) Two (2) county judges, appointed from the two (2) most
20 populous counties in the used tire program according to the most recent
21 federal census; and
22 (C) Four (4) mayors, elected by the mayors of all of the
23 cities in the used tire program; and
24 (D) Two (2) tire retailers, appointed by the Governor.
25
26 SECTION 5. Arkansas Code � 8-9-412 is repealed.
27 8-9-412. Additional fees.
28 (a) A used tire program may charge an additional fee for the
29 collection and recycling of extra-large tires from sources other than
30 registered tire retailers and for any tires in excess of the maximum under �
31 8-9-414(b)(7).
32 (b) If a used tire program charges an additional fee under this
33 section, the fee shall be collected and retained by the used tire program for
34 costs related to the processing of extra-large tires.
35
36 SECTION 6. Arkansas Code � 8-9-413 is amended to read as follows:
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1 8-9-413. Applicability.
2 The fees imposed by this subchapter shall not apply to:
3 (1) Large retreaded tires;
4 (2) Tires included as part of the equipment of a new vehicle; or
5 (3) Tires tires included as part of the equipment of a used
6 vehicle if included in or on the used vehicle at the time of sale and in the
7 sales price of the used vehicle.
8
9 SECTION 7. Arkansas Code Title 8, Chapter 9, Subchapter 4, is amended
10 to add an additional section to read as follows:
11 8-9-416. Online tire sales.
12 To the extent practicable, the tire recycling fees under this
13 subchapter shall be levied and collected on all online tire sales that
14 otherwise would be subject to tire recycling fees under this subchapter.
15
16 SECTION 8. Arkansas Code � 19-6-301(104), concerning enumerated
17 special revenues collected as Division of Environmental Quality fees, is
18 amended to read as follows:
19 (104) All Division of Environmental Quality fees, unless
20 otherwise provided by law, � 8-1-105, landfill operator license fees, � 8-6-
21 909, and that portion of new tire waste tire recycling fees, � 8-9-404;
22
23 SECTION 9. Arkansas Code � 19-6-301(165), concerning the enumeration
24 of special revenues related to rim removal fees and import fees, is amended
25 to read as follows:
26 (165) That portion of rim removal tire recycling fees and import
27 fees, � 8-9-404;
28
29 /s/J. Payton
30
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9 04-07-2025 14:26:21 JMB379Every fact on this page links to its source, starting with the official bill record.