Arkansas House speaker to propose tax hike to fund highways

House Speaker Robert S. Moore Jr., D-Arkansas City, said today he will propose legislation next week that would raise taxes to maintain the state’s highways.  Moore said his proposal — details of which he declined to release — will be the first part of a two-part approach to highway funding. He said the first part will address maintaining existing roads and the second, which is not expected next week, will be a half-cent sales tax increase that legislators will be asked to refer to voters to fund a bond program for new highway construction.  Republican leaders said it will be tough for Moore to find support for the proposals.  Talking to reporters in his office, Moore said the legislation he will unveil next week will propose “a new funding formula for ongoing expenses related to the maintenance of our highway system. That’ll be a bill that I fully intended on being circulated around by mid-week.”  Highway officials have said they need $200 million more a year just to maintain current conditions. Moore said his bill would not raise all of that, but it would raise “a substantial amount.”  Moore would not say what kind of tax he would propose raising or by how much. Asked if raising the severance tax on natural gas will part of his proposal, Moore said the idea is being considered as a possible part of the package.  In the second phase of the plan, Moore said, a proposed half-cent sales tax hike will be added to a proposed constitutional amendment filed by Representative Jonathan Barnett, R-Siloam Springs. If legislators refer it to voters, the measure will be on the November 2012 ballot.  Arkansas News 2/17

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