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Arkansas Diesel Tax Increase Question (2012)

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Diesel Tax Increase Question
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Type:State statute
State code:Arkansas Code 26-56-201(f)
Referred by:Arkansas State Legislature
Topic:Taxes
Status:On the ballot
The Arkansas Diesel Tax Increase Question, also known as the Arkansas Highway Financing Act of 2011, will appear on the November 6, 2012 statewide ballot in the state of Arkansas as a legislatively-referred state statute. The measure was introduced to state legislature during session, as House Speaker Robert Moore stated at the time that he would ask lawmakers to consider the proposal. The measure would implement a five-cent diesel tax to an existing bond issue for highway needs. The measure was placed on the special election ballot after Arkansas Governor Mike Beebe after signing a proclamation around August 29, 2011.[1][2][3]

Text of measure

Summary

The summary of the measure reads as follows:[2]

An act to establish an additional tax on distillate special fuel for the improvement of Arkansas state roads and highways; to authorize the Arkansas State Highway Commission to issue state of Arkansas Federal Highway Grant Anticipation and Tax revenue bonds for the purposes of constructing and renovating roads and highways for the citizens of the state of Arkansas; Authorizing that the repayment of bonds be guaranteed by the full faith and credit of the state; prescribing the terms and conditions of the issuance of bonds; providing for a statewide election on the question of levying the additional tax on distillate special fuel and issuing bonds; declaring an emergency; and for other purposes.

Support

The following is information obtained from the supporting side of the measure:

Opposition

The following is information obtained from the opposing side of the measure:

  • Southwestern Energy Executive Vice-president and General Counsel Mark Boling has stated his opposition to the measure. According to Boling: "The attempt to increase the severance tax at this time — which is a very, very difficult time for folks in the natural gas industry — is going to make it even more difficult for us to continue with the development plans we have."[5]
  • According to state truck driver Kenneth Morgan about a possible diesel tax increase: "If they raise it up more, they are going to end up losing a lot of business, trucking companies here, the smaller ones will go to another state and they are going to lose revenue from that too."[5]

Contents

  • Reports stated that eighteen state lawmakers, fifteen Republicans and three Democrats, signed a letter trying to persuade the Arkansas Municipal League to oppose the measure. The organization has previously endorsed the proposal.[4]

Path to the ballot

House of Representatives

On March 10, 2011, the House Public Transportation Committee approved the measure. The proposal was then sent to the full House, where it must have been approved in order to be sent to the Arkansas Senate for consideration. On March 11, 2011, the bill was approved by the House with a vote of 67-24.[6]

Senate

Then on March 22, 2011, the Senate Transportation Committee endorsed the measure, leaving the Arkansas State Senate to consider the bill. On March 24, 2011, the Senate approved the measure with an 18-12 vote, but made two amendments to the bill. The proposal was then sent back to the Arkansas House of Representatives for consideration.[7][8]

House of Representatives review

The measure was set to be discussed in the chamber on April 1, 2011. However, the House signed off on the amendments on March 29, 2011, sending the bill to be signed by Governor of Arkansas Mike Beebe. The measure was signed by the governor on April 4, 2011, allowing the public to vote on it.[9][10]

Ballot removal request

During June 2011, the Arkansas Trucking Association asked the Arkansas Governor to remove the measure from the ballot, after initially lobbying for the proposal to be sent to the voters. According to the president of the group, Lane Kidd, the group's polling and research found strong opposition to the state question.[11]

Beebe stated he would meet with highway officials and Speaker Robert Moore in order to figure out how to move forward. Beebe stated: "I think it's a pretty significant anti-tax mood, and the Legislature wanted to refer all of these to the people and so if that's a true reflection of the mood of the people, the odds of any of that are pretty problematic."

See also

By Al Ortiz
Ballot measure writer
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Additional reading

References

  1. ↑ Bloomberg, "Ark. Speaker says voters should decide roads' fate", February 25, 2011
  2. ↑ 2.0 2.1 Arkansas Legislature, "House Bill 1902", Retrieved May 4, 2011
  3. ↑ Caroll News, "A vote for better roads", September 6, 2011
  4. ↑ 4.0 4.1 Sutttgart Daily, "Ark. lawmakers ask leaders to reconsider tax hike", January 13, 2012
  5. ↑ 5.0 5.1 The City Wire, "Gas exec says severance tax wrong for Arkansas", March 11, 2011
  6. ↑ Canadian Business, "Arkansas House committee agrees to refer diesel tax increase to voters for road improvements", March 11, 2011
  7. ↑ Land Line Mag.com, "Diesel tax ballot effort heads to Arkansas governor", March 29, 2011
  8. ↑ Landlinemag.com, "Arkansas voters to decide on diesel, sales tax increases", April 4, 2011
  9. ↑ Land Line Magazine, "Arkansas House approves diesel tax ballot effort", March 16, 2011
  10. ↑ The Trucker, "Arkansas road tax measures get closer to ballot box", March 25, 2011
  11. ↑ Business Week, "Ark. trucking lobby backs off diesel tax plan", June 20, 2011
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