MEMPHIS, TN (WMC) - A $300 million plan to fund highway upkeep in Arkansas calls for the half-cent sales tax to stick around.
Governor Asa Hutchinson said along with the making the half-cent sales tax permanent, the proposal also calls for an increase in the fuel sales tax by 3 cents.
It will also include increased registration fees on hybrid and electric vehicles and dedicating future casino tax revenues to highways.
“It is the top dollar amount that in my judgment people of Arkansas can afford,” Gov. Hutchinson said. “It is affordable, it is prudent for our budget and it is reasonable.”
Gov. Hutchinson said under the first 10 years, the plan would allow for maintaining interstates, improving state highways.
It would also allow for every structural deficient bridge to be replaced.
To be implemented, the plan will require legislative action and a ballot referral in 2020.