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Car Wash Water Usage Fee

Car Wash Water Usage Fee

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Act 822 of 2019 levies a monthly water usage fee on water used from a public water system by a car wash operator in car wash tunnels and automatic car washes.  Act 822 of 2019 is effective October 1, 2019.  This fee is calculated on the total aggregate number of gallons of water used during the preceding month for all the car wash operator’s car wash tunnels or automatic car washes.

The water usage fee is calculated for car wash tunnels by taking eighty percent (80%) of the total aggregate number of gallons and multiplying this figure by .004.  The product of this calculation is the fee that is due for that tax period.

The water usage fee is calculated for automatic car washes is calculated by taking eighty percent (80%) of the total aggregate number of gallons and multiplying this figure by .002.  The product of this calculation is the fee that is due for that tax period.

Applicable statues: AR Code Ann. §26-57-1603

Definitions:

Automatic Car Wash – Car wash bay that provides a car wash using mechanical equipment that cleans the motor vehicle while the motor vehicle remains stationary.

Car Wash Tunnel - Car wash bay that provides a fully automated car wash in which the motor vehicle is moved through a tunnel by a conveyor system.

Applicable statues: AR Code Ann. §26-57-1601

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