Gov. Mike Beebe exercised his third line-item veto during his tenure as Governor.
The governor invoked the line-item veto for Section 16 of House Bill 1048, an appropriation bill for the Revenue Services Division of the Department of Finance and Administration.
The section of the bill in question allows for an exemption from the gross receipts tax for certain machinery and equipment used in manufacturing as well as sand and other proppants used in oil or gas drilling.
Beebe said the provision is unconstitutional and should not have been dealt with in the fiscal session.
“Substantive changes to Arkansas law that have no relation to appropriations, such as Section 16 of HB 1048, should rarely be considered during fiscal sessions,” Beebe wrote in his veto letter. “If they are to be considered at all, it should be done through the process the people established in our Constitution, and not through ‘special language’ amendments to unrelated appropriation bills.”
The Arkansas General Assembly reconvenes on Wednesday of this week and can consider overriding the Governor’s veto before the legislature officially adjourns.
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