The Arkansas House approved two pieces of legislation Monday addressing highway funding.
The first piece of legislation, a $95 million highway-funding bill that’s part of a $300 million highway funding package, diverts all revenue from casino gaming that exceeds $31.2 million to the State Highway and Transportation Department Fund, raises the gas tax by 3 cents a gallon and diesel by 6 cents a gallon, and imposes a $100 registration fee on hybrid vehicles and a $200 registration fee on electric vehicles.
“It is gratifying to work with members of the General Assembly who understand the dire need to fund the upkeep of our roads now and into the future,” Gov. Asa Hutchinson said. “The passage of this historic bill is a solid and necessary measure to ensure we keep our roads in good repair, which is essential to our commerce and to daily life.”
The second bill is a proposed constitutional amendment that would permanently extend a ½ cent sales tax to fund state highways. This would raise an estimated $205 million annually.
The sales tax will expire in 2023.
If the bill also advances the state Senate, it will be on the ballot in November 2020 for voters’ approval.