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Arkansas Bill Would Tap Revenue, Raise Tax For Highways

Interstate highway big rock interchange interstates 630 430
Michael Hibblen

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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