A buried provision in Arkansas's environmental appropriations bill changes the economics of used tire programs for retailers and recyclers.
Most Arkansas retail tire shop owners don't realize that a provision buried deep in this year's environmental spending bill directly affects how much they'll be reimbursed for managing used tires—and when that change takes effect.
Here's what changed: HB1066, 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 paid to used tire programs. Starting July 1, 2026, that rate increases to $2.31 per tire for transportation, recycling, and disposal costs.
If you operate a tire retail shop, manage a tire recycling facility, or participate in Arkansas's used tire program, this change directly impacts your bottom line. The reimbursement rate is what the state pays back to businesses that handle the logistics and costs of getting used tires out of landfills and into proper recycling or disposal channels.
The previous rate was lower, so the increase to $2.31 per tire means improved compensation for these activities starting next fiscal year. For shops processing significant tire volumes, this can meaningfully affect profitability on used tire handling.
The same bill (Sections 42–43) also repeals the prohibition on commercial generators charging additional fees to end users. This means businesses that generate used tires can now pass along certain costs to customers, giving retailers more flexibility in how they structure their tire disposal fees. This change also takes effect July 1, 2026.
The effective date is critical: July 1, 2026. The reimbursement rate increase and the fee structure change both take effect on that date. If you're planning budgets, pricing, or operations around used tire handling, mark this date on your calendar. It gives you roughly six months from now to prepare.
Review your current participation in Arkansas's used tire program and your fee structure. If you're not currently enrolled, the improved reimbursement rate may make participation more attractive. If you are enrolled, the July 1 rate increase should be factored into your 2026-2027 financial planning.
You should also clarify with the Division of Environmental Quality whether your business qualifies as a commercial generator under the fee repeal, since that affects your ability to charge additional fees to customers starting July 1.
The provision appears in Section 44, Page 22 of HB1066. For a detailed breakdown specific to your retail operation, contact your state tire industry association or the Arkansas Department of Energy and Environment's Division of Environmental Quality.
Source: HB1066, An Act For The Department Of Energy And Environment - Division Of Environmental Quality Appropriation For The 2026-2027 Fiscal Year, Section 44, Page 22.