The Arkansas Senate has approved a plan to raise fuel taxes and tap into expected casino revenue to increase funding for the state's highways.
The Senate voted 27-8 Thursday for a key part of Gov. Asa Hutchinson's $300 million highway funding plan. It now heads to the House.
The proposal creates a new wholesale tax on fuel that will raise gas prices by 3 cents a gallon and diesel by 6 cents a gallon. It also dedicates at least $35 million in expected revenue from four casinos that will be created under a constitutional amendment voters approved last year. The bill also includes additional registration fees for hybrid and electric vehicles.
Hutchinson's highway plan includes a separate proposal asking voters next year to permanently extend a half-cent road sales tax.