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“iT’s a dramaTic proposal To shifT fuNdiNg from The gas Tax To The
sales Tax, aNd we’re goiNg To haVe To looK aT whaT iT meaNs wheN you
discoNNecT The Tax from The acTual use of The roadways.”

—sTewarT schwarTz, execuTiVe direcTor, coaliTioN for smarTer growTh

arkaNSaNS ok Tax HIkE in Arkansas and it improves Arkansas routes that have enough traffic on them
Known as Issue No. 1, the sales tax roads,” he said. to generate the revenue to make a dif-
increase will begin in July and for the Scott Bennett, director of ference as a toll road.”
next 10 years will finance a $1.3 billion the Arkansas State Highway and Still, Bennett said the state is con-
bond issue for those roads most in need Transportation Department, expects sidering a toll on an interstate bypass
of repair. Plus, the amendment will pro- about $4 billion in revenue from cur- in northwest Arkansas along I-540. In
vide $20 million for a State Aid Street rent state and federal sources over the addition, the agency has contracted
Fund to further help cities and towns next decade. The addition of Issue No. with a research firm to study the feasi-
with local street and bridge programs, 1 funding brings that revenue closer to bility of tolling the 125 mile segment of
without raising gas taxes. $6 billion. I-40 between Memphis, Tenn. and Little
The amendment’s passage was Among the projects set to benefit Rock, one of the heaviest volume truck-
championed by a large contingent of from Issue No. 1 is the completion of ing corridors in the United States. The
Arkansas’ business leaders, who were a four-lane highway connector linking toll could be used to widen portions of
troubled by the state having the 12th I-55 to Arkansas Highway 18 between the interstate highway.
largest highway system in the country, Jonesboro and Blytheville in the north-
but ranked only 42nd in its ability to east corner of the state, as well as the THE vIrgINIa ExpErIENCE
pay for it. nearby widening of U.S. Highway 412 While many in trucking prefer
According to Madison Murphy, to four lanes between Paragould and diesel taxes to toll roads and user fees,
outgoing chairman of the Arkansas Walnut Ridge. states are watching funds recede as
Highway Commission, the amend- But even Issue No. 1 is only a vehicles fuel economy improves, mak-
ment’s passage will only enhance the Band-Aid on the deep gash of infra- ing states eager to find permanent—and
state’s economic development opportu- structure funding. Bennett described it immediate—solutions.
nities by increasing mobility and freight as a “bridge to give us time to find bet- Virginia Gov. Robert McDonnell
opportunities. ter ways to fund highways in Arkansas.” (R) recently proposed eliminating
“The positive vote is evidence that Virginia’s gas tax of 17 cents per gallon
Arkansans believe in the importance of To Toll, or NoT To Toll in exchange for raising the state’s 5 per-
good roads, and that they are willing Among the other strategies Bennett cent sales tax to 5.8 percent. He would
to invest in themselves and the future and his agency are studying is legisla- also assess an annual fee of $100 on
of our state,” he said. “The people of tion that will transfer the sales taxes alternatively fueled cars.
Arkansas were presented with an oppor- paid on transportation-related items On February 23, Virginia became
tunity and they chose to pursue it.” (i.e. new and used vehicles, tires, batter- the first state in the country to elimi-
With about $24 billion worth of ies and auto repair parts and services) nate its gasoline tax when McDonnell’s
road needs, the revenue brought in will from the state’s general revenues to a proposal was approved by the state
make only a small dent in addressing transportation-specific fund. Senate after having passed a House vote
the problem, but, in tandem with the And, yes, he also is looking hard at the previous week.
re-issue of their own GARVEE bonds, building toll roads to generate revenue, The governor has indicated that
Murphy sees better days ahead for although he is not sure if that is a good the state gasoline tax’s diminishing
Arkansas’ roads. option for his state. “The problem with returns minimizes its effectiveness in
“The best thing about the approval tolls is in two parts,” Bennett said. raising new revenues. Higher vehicle
of Issue No. 1 is that the program does “First, is the cost to build them and fuel efficiency standards, among other
not rely on federal assistance — this is second is the fact that we are largely
money generated in Arkansas, it stays a rural state and there are not many 

arKanSaS truCKing report | issue 1 2013 33