Arkansas Senate Committee OKs Funding Plan For State Roads

Feb 20, 2019

Sen. Terry Rice speaks in support of the highway proposal during Thursday's committee meeting.
Credit Arkansas Legislature

An Arkansas Senate panel has endorsed a proposal to raise gas taxes and tap into expected casino revenue to increase funding for the state's highways.

The Senate Revenue and Tax Committee on Wednesday approved the first part of a $300 million highway funding plan that Gov. Asa Hutchinson and legislative leaders unveiled last week. The measure is expected to go before the full Senate for a vote on Thursday.

The proposal includes a new wholesale tax on fuel that would raise gas prices by 3 cents a gallon and diesel by 6 cents a gallon. It also calls for the state to direct $35 million a year in expected casino revenue toward roads, and would raise registration fees for electric and hybrid vehicles.