Public Radio from UA Little Rock
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

Arkansas Bill Would Tap Revenue, Raise Tax For Highways

Interstate highway big rock interchange interstates 630 430
Michael Hibblen
/
KUAR News

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.

The Associated Press is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, it's a not-for-profit news cooperative owned by its American newspaper and broadcast members.
Related Content