A provision in Arkansas's 2026-2027 budget bill raises what the state pays tire retailers and processors for recycling used tires.
Most Arkansas retail owners who handle used tires don't realize the state reimburses them for participating in tire recycling programs—and fewer still know that reimbursement rate just increased.
Buried in HB1066, An Act For The Department Of Energy And Environment - Division Of Environmental Quality Appropriation For The 2026-2027 Fiscal Year, is a change that directly affects tire retailers and processors across the state. Section 44 of the bill, found on Page 22, raises the statutory reimbursement cap to $2.31 per tire, effective July 1, 2026.
Arkansas operates a used tire management program designed to keep old tires out of landfills and illegal dumps. Tire retailers and processors who participate in this system—collecting, storing, and arranging proper disposal of used tires—receive reimbursement from the state for their costs and effort.
The new rate of $2.31 per tire is the maximum amount the state will reimburse participating businesses. This is a meaningful increase for retailers who handle volume. For a shop processing 500 used tires per year, the difference adds up quickly in additional revenue that can offset the labor and logistics involved in managing tire waste.
The change applies to all tire retailers and processors in Arkansas who are enrolled in the state's used tire program. If your business accepts used tires from customers as part of your service—whether you're a tire shop, auto service center, or waste management operation—you should verify your enrollment status and understand how the new rate applies to your specific arrangement with the state.
The new reimbursement rate becomes effective July 1, 2026. This gives businesses several months to understand the change and adjust their budgets and operational planning accordingly. If you're currently in the program, you won't need to take action to receive the higher rate; it applies automatically when the fiscal year begins.
If you currently handle used tires, confirm that your business is properly registered with Arkansas's used tire program. Contact the Department of Energy and Environment, Division of Environmental Quality, to verify your enrollment and ask about the mechanics of how the new rate will be applied to your reimbursements.
If you don't currently accept used tires but have considered it, the improved reimbursement rate may make the economics more favorable. The state can provide details on program requirements, eligible tire types, and how reimbursement is processed.
This is the kind of operational detail that doesn't make headlines but meaningfully affects small business margins. The provision is real, the rate is set, and the effective date is fixed. It's worth a conversation with your accountant and your state program administrator to ensure you're capturing the full benefit.
Source: HB1066, Section 44, Page 22; effective July 1, 2026.