Arkansas Bill Would Tap Revenue, Raise Tax For Highways

by Andrew DeMillo, The Associated Press  on Monday, Jan. 28, 2019 5:04 pm   1 min read

Dan Douglas

LITTLE ROCK — An Arkansas lawmaker has proposed tapping into tax revenue from car sales and imposing a new tax on motor fuels to raise money for the state's highways, combining two approaches that have faced significant opposition in the predominantly Republican Legislature.

Republican Rep. Dan Douglas filed a bill Monday that he said he hoped would start the conversation on highway funding, which legislative leaders and Gov. Asa Hutchinson have called a priority for this year's session.

Douglas' proposal calls for gradually diverting tax revenue from vehicle sales to highways over a four-year period, hitting a maximum of $120 million a year. The transfer would begin once Arkansas' gross sales tax revenue exceeds $2.5 billion. It also calls for imposing a 3.5 percent sales tax on the wholesale price of motor fuel.

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