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Let’s see if new tax plans pan out

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Arkansas lawmakers, the majority Republicans, walked away from this recent session of the Legislature feeling good about what they accomplished but let’s take a closer look at some of what they did and how it will impact each and everyone of us, particularly in regard to higher taxes and fees.

Insofar as taxes are concerned, Gov. Asa Hutchinson’s push for a long-term highway funding plan 17 of 23 state lawmakers who signed an anti-tax increase pledge voted to increase the excise tax on gasoline by 3 cents a gallon to 24.5 cents a gallon and the excise tax on diesel by 6 cents a gallon to 28.5 cents a gallon, effective Oct. 1.

And the law further indexes future increases, so the maximum future increase would be 0.1 cent per year, meaning a maximum of 1 cent every 10 years.

Then there is another money grabber that will increase registration fees for electric vehicles by $200 and hybrid vehicles by $100, effective Oct. 1, and transfer at least $35 million a year in casino revenue and/or other state funds to the state Department of Transportation to spend on highways.

Eleven of the 23 lawmakers who signed this anti- tax pledge also voted to refer to voters in the 2020 general election a proposed constitutional amendment that would make permanent the state’s half-percent sales tax for highways.

Remember folks that tax originally was approved by us, the voters, in 2012 for a 10-year period. That plan, if we are inclined to go along, would eventually raise about $204 million more a year for the Transportation Department an about $44 million more a year apiece for cities and counties.

While lawmakers did pass a bill phasing in reductions in the state’s top individual income tax and corporate income tax rates they also increased the homestead property tax credit from $350 to $375 per parcel.

In another hit to our wallets was the governor’s push to get lawmakers to make sure those Arkansans among us who make out-of-state on-line purchases from such sites as Amazon, e-Bay, Walmart and scores of other on-line vendors pay state sales taxes.

While many of these lawmakers who signed this anti-tax pledge reneged on their promise polling showed that a majority of voters supported both highway measures and that is because Arkansans have been led to believe the state Transportation Department doesn’t have enough of our tax dollars to adequately fix or replace our crumbling highways and bridges.

And, according to Jon Gilmore, president of Gilmore Strategy Group and a former deputy chief of staff to Hutchinson as well as the governor’s chief political strategist, voters want to see tangible results for their tax dollars and, if they know this will be spent on something that they can see and drive on, they will support it.

Admittedly, the state’s current road funding formula is antiquated and has shown to fall short of meeting the needs of our roads, highways and bridges. Now, with that said, let’s hope our generous and understanding Arkansans actually see the promised substantial improvements not only on a statewide level but also in our cities and counties.

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