Ark. panel OKs considering tax break repeal

February 14, 2012

A proposal to repeal an Arkansas tax break for truckers that takes effect later this year cleared the first hurdle on Tuesday toward being considered in the fiscal session.

The House Rules Committee advanced a resolution that will allow the repeal to move forward. The tax break takes effect in July and was part of a highway plan approved last year that also called for placing a 5-cent diesel tax hike on the ballot. House Speaker Robert Moore proposed the repeal after the state’s trucking lobby withdrew its support for the tax hike.

Voters instead in November extended a $575 million highway bond program.

Moore said he believes there’s enough support in the House to garner the two-thirds vote needed to consider to repeal, but the plan’s fate is less certain in the Senate. If the exemption takes effect, the state stands to lose about $4 million annually for road needs, Moore said.

“We’re merely putting the finishing touches on an agreement we had with the trucking association when they brought the proposal to us in the Legislature, and that was pass the 5-cent diesel tax and in exchange for their support on that we would support an exemption on the remaining tax that’s due for trucks and trailers,’’ Moore said.

Senate President Paul Bookout said he’s inclined to support the repeal, but said he didn’t know if there were enough votes in the Senate to introduce the measure. Bookout said some senators may be reluctant to take up the tax, because it’s not a budget bill.

“That’s what we wrestle with: If you get outside of fiscal matters, it better be a very unusual and highly demanding circumstance to do that,’’ said Bookout, D-Jonesboro.

The House is expected to vote on the resolution on Wednesday, and the Senate must approve it before the repeal can be considered.

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