Ark. Code Ann. § 26-58-111 (2026)

The severance tax is to be predicated upon the quantity severed and at the following rates:

1. On barite, bauxite, titanium ore, manganese and manganiferous ores, zinc ore, and cinnabar, fifteen cents (15¢) per ton of two thousand pounds (2,000 lbs.);
2. On coal, lignite, and iron ore, two cents (2¢) per ton of two thousand pounds (2,000 lbs.);
3. On gypsum not used for manufacturing within Arkansas into ultimate consumer's goods, or sold for manufacturing within Arkansas into ultimate consumer's goods, and chemical grade limestone, silica sand, and dimension stone, one and one-half cents (1½¢) per ton of two thousand pounds (2,000 lbs.);
4. On crushed stone including, but not limited to, chert, granite, slate, novaculite, and limestone, and on construction sand, gravel, clay, chalk, shale, and marl, one cent (1¢) per ton of two thousand pounds (2,000 lbs.);
5. On natural gas, the following percent of the market value of the natural gas severed within the State of Arkansas:
   1. On new discovery gas, as defined in § 26-58-101, the severance tax rate shall be one and one-half percent (1.5%) for the time period provided in § 26-58-127(a);
   2. On high-cost gas, as defined in § 26-58-101, the severance tax rate shall be one and one-half percent (1.5%) for the time periods provided in § 26-58-127(b);
   3. On marginal gas, as defined in § 26-58-101, the severance tax rate shall be one and one-quarter percent (1.25%); and
   4. On all natural gas that is not defined as new discovery gas, high-cost gas, or marginal gas, the severance tax rate shall be five percent (5%);
6. 1. On oil, five percent (5%) of the market value at time and point of severance.
   2. However, whenever the production of oil from a well which is measured separately or from a group of wells which is measured separately, including any well or wells that are utilized for the injection of salt water or other effluents for pressure maintenance or secondary recovery purposes, averages ten (10) barrels or less per well per day during any calendar month, the privilege or license tax on oil produced from that well or group of wells during that month shall be computed at the rate of four percent (4%) of the market value at time and point of severance.
   3. The Secretary of the Department of Finance and Administration shall have the power to promulgate such reasonable rules as shall be necessary to effectively enforce the foregoing provisions;
7. On timber, the tax shall be collected, reported, and remitted by each primary processor and shall be computed on the weight of such timber as determined at the last time the timber is weighed prior to undergoing the first processing after severance thereof and shall be at the following rates:
   1. On all pine timber, seventeen and eight-tenths cents (17.8¢) per ton of two thousand pounds (2,000 lbs.);
   2. On all other timber, twelve and five-tenths cents (12.5¢) per ton of two thousand pounds (2,000 lbs.); and
   3. 1. If any primary processor of timber is unable to weigh the timber as required herein because an approved weight scale is not available, the primary processor shall use the following conversion factors to convert other measurements of timber to weight:
      2. If the above conversion factors are not appropriate for conversion of any particular measurement of timber to weight, the secretary, with the advice and approval of the Arkansas Forestry Commission, shall develop an appropriate conversion procedure to produce equivalent rates;
8. On diamonds, fuller's earth, ochre, natural asphalt, native sulphur, salt, pearls and other precious stones, whetstone, novaculite, and on all other natural resources, except gypsum, not otherwise specifically identified under the severance tax laws of this state, except mussel shells, five percent (5%) of the fair market value at the time of severance;
9. On salt water whose naturally dissolved components, or solutes, are used as source raw materials for bromine and other products derived from the same salt water used in the bromine production, two dollars and forty-five cents ($2.45) per one thousand (1,000) barrels, forty-two thousand United States gallons (42,000 U.S. gals.); and
10. 1. Except as provided in subdivision (10)(B) of this section, on all other natural resources not otherwise specifically identified under the severance tax laws of this state, five percent (5%) of the market value at time and point of severance.
    2. 1. Biomass used primarily for the purpose of biofuel production is not subject to a severance tax.
       2. As used in subdivision (10)(B)(i) of this section, “biomass” means any woody biomass that is grown for use in biofuels and is not grown for the production of other timber products.

PRODUCT CONVERSION FACTORS SAWTIMBER: Pine 16,000 Lbs./MBF Doyle All Other 16,000 Lbs./MBF Doyle PULPWOOD: Pine 5,000 Lbs./Cord-128 Cu. Ft. All Other 6,000 Lbs./Cord-128 Cu. Ft. POSTS OR POLES: Less than 10' in length 30 Posts/Ton POSTS OR POLES: 10'—16' in length 15 Posts/Ton POLES OR PILING: Greater than 16' in length 40 Lineal Ft./Ton SPLIT CORDS 6,000 Lbs./Cord-128 Cu. Ft. VENEER CORDS 5,000 Lbs./Cord-128 Cu. Ft. HANDLE AND OTHER CORDS 6,000 Lbs./Cord-128 Cu. Ft. CHEMICAL CORDS 6,000 Lbs./Cord-128 Cu. Ft. WHOLE TREE CHIPS: Pine 5,000 Lbs./Cord-128 Cu. Ft. All Other 6,000 Lbs./Cord-128 Cu. Ft.

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History. Acts 1947, No. 136, § 2; 1949, No. 469, § 1; 1953, No. 42, § 9; 1953, No. 322, § 1; 1957, No. 21, § 1; 1957, No. 150, § 1; 1957, No. 263, § 1; 1959, No. 93, § 1; 1959, No. 129, §§ 1, 2; 1967, No. 379, § 1; 1971, No. 147, § 1; 1977, No. 388, §§ 3, 4; 1981, No. 617, § 1; 1983, No. 254, § 2; 1983, No. 874, § 1; A.S.A. 1947, § 84-2102; Acts 1993, No. 25, § 1; 1993, No. 1156, § 3; 1995, No. 356, § 1; 2008 (1st Ex. Sess.), No. 4, § 7; 2008 (1st Ex. Sess.), No. 5, § 7; 2009, No. 655, §§ 99, 100; 2009, No. 737, § 1; 2019, No. 315, § 3044; 2019, No. 910, §§ 4235, 4236.

A.C.R.C. Notes. Acts 2008 (1st Ex. Sess.), Nos. 4 and 5, § 1, provided: “Legislative findings and intent.

“(a) The General Assembly has determined that the severance tax rate on natural gas should be increased and that there should be different rates of tax for different categories of natural gas.

“(b) Amendment 19 of the Arkansas Constitution required this act to be passed by at least three-fourths of the members of the Senate and at least three-fourths of the members of the House of Representatives.

“(c) In order to implement the increase in the severance tax rate, the General Assembly has identified the following four categories of natural gas, each as defined in Arkansas Code § 26-58-101:

“(1) High-cost gas;

“(2) Marginal gas;

“(3) New discovery gas; and

“(4) All natural gas that is not defined as high-cost gas, marginal gas, or new discovery gas.

“(d) To increase the severance tax rate, the General Assembly used the method of levying a specific tax rate on each category so that any future legislative enactment that would have the effect of increasing the rate of severance tax on any of those categories of natural gas as defined by § 26-58-101 will also be subject to the three-fourths vote requirement of Amendment 19 of the Arkansas Constitution.”

Amendments. The 2008 (1st Ex. Sess.) amendment by identical acts Nos. 4 and 5, effective January 1, 2009, rewrote (5).

The 2009 amendment by No. 655 substituted “(12.5¢)” for “(12½¢)” in (7)(B); and inserted “and” at the end of (7)(B) and (9).

The 2009 amendment by No. 737 added (10)(B), redesignated the remaining text of (10) accordingly, inserted “Except as provided in subdivision (10)(B) of this section” in (10)(A), and made related changes.

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (6)(C).

The 2019 amendment by No. 910 substituted “Secretary” for “Director” in (6)(C) and “secretary” for “director” in (7)(C)(ii).