Arkansas IFTA Fuel Tax Compliance and Filing

The International Fuel Tax Agreement (IFTA) simplifies the reporting of fuel use taxes for motor carriers traveling through multiple jurisdictions. In Arkansas, the IFTA program is administered by the Department of Finance and Administration (DFA) under the Arkansas Motor Fuel Tax Law. Carriers based in Arkansas that operate qualified motor vehicles in at least one other IFTA jurisdiction must register for an Arkansas IFTA license to consolidate their fuel tax obligations. A qualified motor vehicle is defined by the DFA as a vehicle used for transporting persons or property that has two axles and a gross vehicle weight exceeding 26,000 pounds, has three or more axles regardless of weight, or is used in combination exceeding 26,000 pounds. Accurate distance and fuel tracking are critical for avoiding penalties during state audits. DispatchTool streamlines this process by capturing precise GPS-based mileage data across state lines, allowing carriers to generate IFTA-ready reports that distinguish between taxable miles in Arkansas and neighboring states like Texas or Missouri. By automating the collection of trip sheets and fuel receipts, the platform reduces the risk of manual entry errors that lead to interest charges. Create a DispatchTool account to automate your mileage tracking and simplify your quarterly IFTA preparation.

Arkansas IFTA Registration and Credentials

To register for IFTA in Arkansas, a carrier must have an established place of business in the state, maintain operational control from an Arkansas location, and have a valid USDOT number. The application is submitted via the DFA's Arkansas Taxpayer Access Point (ATAP). There is no fee for the annual IFTA license or the initial set of decals, but carriers must ensure their account is in good standing before decals are issued. Each qualified vehicle must display two decals—one on each side of the exterior cab—and carry a photocopy of the current year's license. Arkansas decals are valid from January 1 through December 31, with a two-month grace period extending into February if the renewal was submitted by the December deadline.

Quarterly Filing Deadlines and Procedures

Arkansas IFTA returns must be filed quarterly through the ATAP system. The deadlines are strictly enforced: Q1 (Jan-Mar) is due April 30; Q2 (Apr-Jun) is due July 31; Q3 (Jul-Sep) is due October 31; and Q4 (Oct-Dec) is due January 31. If the last day of the month falls on a weekend or legal holiday, the next business day is considered the deadline. Even if no taxable fuel was used or no miles were traveled during a quarter, a 'zero' return must still be filed to maintain the license. Failure to file by these dates results in a penalty of $50 or 10% of the tax due, whichever is greater, plus monthly interest.

Arkansas Fuel Tax Rates and Surcharges

As of 2024, the Arkansas excise tax on motor fuel is $0.247 per gallon for gasoline and $0.285 per gallon for diesel. These rates are subject to annual adjustments based on the wholesale price of fuel as determined by the DFA. When filing the IFTA-100 and IFTA-101 forms, carriers calculate the net tax or refund by comparing the tax paid at the pump to the tax owed based on the total miles driven in each jurisdiction. Arkansas does not currently implement a fuel surcharge on top of the base tax rate, but carriers must account for surcharges in neighboring states like Kentucky or Indiana if they traverse those jurisdictions.

Statutory Recordkeeping Requirements

Arkansas requires carriers to maintain detailed records for a period of four years from the filing date or the due date of the return, whichever is later. According to the DFA, these records must include Daily Driver Trip Insurance (DDTI) or trip sheets that record the date of the trip, origin and destination, routes of travel, beginning and ending odometer readings, and total distance traveled in each jurisdiction. Fuel records must include original receipts or invoices showing the date of purchase, seller's name and address, number of gallons purchased, fuel type, price per gallon, and the unit number of the vehicle into which the fuel was placed.

Audit Selection and Compliance

The IFTA Articles of Agreement require the Arkansas Department of Finance and Administration to audit 3% of the state’s IFTA licensees annually. Audits often focus on mileage gaps and missing fuel receipts. If an audit reveals that records are inadequate to determine tax liability, the DFA may impose a tax assessment based on an estimated average of 4.0 miles per gallon. Furthermore, any credits claimed for tax-paid fuel without valid receipts will be disallowed. To avoid these assessments, carriers should conduct monthly internal reconciliations of their GPS data against driver logs and fuel card statements.

Exemptions and Non-IFTA Miles

Arkansas recognizes certain exemptions for fuel tax reporting, though they are limited compared to some other states. Miles traveled on private property or off-road are generally not exempt from IFTA reporting in Arkansas unless the fuel was consumed by equipment that is not a 'qualified motor vehicle' as defined by the IFTA articles. Toll miles driven on the Arkansas River bridge or other designated segments remain fully taxable. Carriers should be aware that while some jurisdictions allow exemptions for agricultural or government vehicles, those miles must still be documented accurately to ensure the 'Total Miles' figure on the IFTA return matches the vehicle's odometer readings.

Sources

Arkansas Department of Finance and Administration (2024) — https://www.dfa.arkansas.gov/excise-tax/motor-fuel-tax/ifta/ International Fuel Tax Association, Inc. (IFTA) (2025) — https://www.iftach.org/ Arkansas Motor Fuel Tax Law § 26-55-201 (2024) — https://arkansasag.gov/resources/arkansas-law/

Frequently asked

What is the penalty for late IFTA filing in Arkansas?

Arkansas imposes a penalty of $50.00 or 10% of the total tax due, whichever is greater, for any return that is filed after the quarterly deadline.

How much do IFTA decals cost in Arkansas?

Currently, the Arkansas Department of Finance and Administration does not charge a fee for IFTA decals or the annual license for Arkansas-based carriers.

Can I file my Arkansas IFTA return by mail?

While the DFA encourages electronic filing via the ATAP portal for faster processing, paper returns can be requested, though they must be postmarked by the deadline to avoid late fees.

What is the diesel tax rate in Arkansas for 2024?

The Arkansas diesel fuel tax rate is $0.285 per gallon, which is used to calculate tax liability on the quarterly IFTA-101 schedule.

How long must I keep fuel receipts for Arkansas IFTA?

Carriers must retain all fuel receipts and distance records for a minimum of 4 years to comply with Arkansas and IFTA auditing standards.