A provision in Arkansas's environmental appropriations bill quietly raises what tire retailers and processors get paid per tire—and removes a previous restriction on fees.
Most Arkansas retail owners who handle used tires have no idea that a provision buried in HB1066—an environmental appropriations bill—directly affects how much they'll be reimbursed for tire collection, transportation, recycling, and disposal. Starting July 1, 2026, that reimbursement rate is going up.
HB1066, formally titled "An Act For The Department Of Energy And Environment - Division Of Environmental Quality Appropriation For The 2026-2027 Fiscal Year," amends Arkansas Code § 8-9-405(a)(1) to raise the maximum reimbursement rate to $2.31 per tire. This is the payment that tire retailers, processors, and used tire programs receive from the state's tire recycling fund for managing end-of-life tires.
The bill also repeals the fee-stacking prohibition that was previously in place under § 8-9-404(d)(3)(B) and § 8-9-404(e). In plain terms: the old rule prevented commercial generators (like large retailers) from charging customers a tire disposal fee and collecting the state reimbursement. That restriction is being removed, which means the fee structure around tire handling is changing.
If your retail operation sells tires or accepts used tires for disposal, this matters to you. The higher reimbursement rate applies to tire retailers, tire processors, and any business participating in Arkansas's used tire management program. The change affects how you account for tire disposal costs and what you can charge customers for the service.
Businesses that generate large volumes of used tires—or that operate dedicated tire collection programs—will see the most direct impact on their operations and margins.
The provision becomes effective on July 1, 2026. That gives retailers and processors about six months from now to understand how the change affects their pricing, accounting, and customer communication around tire fees and disposal.
The language appears in Section 44 of HB1066, on Page 22 of the bill text.
If your business handles used tires, review your current tire disposal fees and reimbursement processes before the July 1, 2026 effective date. The removal of the fee-stacking prohibition means you may have new flexibility in how you structure charges to customers—but that flexibility also requires clear documentation and compliance with any updated state guidance.
Contact the Arkansas Department of Energy and Environment's Division of Environmental Quality if you need clarification on how the new rate and fee rules apply to your specific operation. Having that conversation now, rather than after July 1, will help you adjust your practices smoothly.
For a detailed breakdown of how this provision affects your specific retail operation, consult with your accountant or the Arkansas Retailers Association.