Support wanes for Arkansas highway bills
by June 22, 2011 1:57 pm 91 views
Editor’s note: Roby Brock, with our content partner Talk Business, contributed to this report. He can be reached at [email protected]
Part of a quid pro quo between truckers, Gov. Mike Beebe and state lawmakers is in question thanks to the state trucking association’s request to delay a potential five-cent diesel fuel tax increase.
When House Speaker Robert Moore secured supported from the Arkansas Trucking Association for an increase in the diesel fuel tax to help pay for interstate improvements, truckers also negotiated a tax break on truck and trailer registrations.
HB 1902 and HJR 1001 are tandem bills dealing with Speaker Moore’s effort to improve highway funding. HB 1902 calls for a trucking association-supported nickel increase in the diesel fuel tax to extend an interstate bond program, subject to voter approval. HJR 1001 by former Highway Commissioner Rep. Jonathan Barnett, R-Siloam Springs, is still in its shell form, but will ultimately be a voter-referred half-cent sales tax increase for four-lane highways throughout the state.
In the past week, the trucking industry has asked Beebe to delay his call for a special election citing lack of public support for the diesel fuel hike.
Now, politicos are eyeing the fate of the tax break tied to the roads program support.
Kelly MacNeil, with KUAR-FM 89 News in Little Rock, recently reported:
The governor’s spokesperson, Grant Tennille, told FM-89 that Beebe always considered the truck tax break to be contingent on the passage of the diesel tax.
"If it doesn’t go forward, [Beebe] has said that he intends to try and repeal the exemption," Tennille said. "It was drafted in such a way that gives us an opportunity to come back in ’13 and do just that."
A spokesperson for the trucking association told FM-89 that now isn’t the time to discuss revoking the tax break.
The legislation has not been popular with Arkansans.
A Talk Business-Hendrix College Poll of 659 state voters was conducted Feb. 28 showed a likely voter bias against the plans.
Q: Arkansas legislators are considering several highway funding options to build and maintain roads. One proposal would increase diesel fuel taxes by 5 cents to pay for Interstate highway needs. Do you support a five-cent diesel fuel tax increase for this purpose?
32% Yes
56% No
12% Don’t Know
Q: Another highway funding proposal would include raising the sales tax in Arkansas by a half-cent to build and repair four-lane highways across the state. Do you support a half-cent diesel fuel tax increase for this purpose?
34% Yes
59% No
7% Don’t Know