MonticelloLive

Natural-gas severance tax currently only item on March 31 call

Governor Mike Beebe nas announced that he is calling the 86th General Assembly into a special legislative session beginning Monday, March 31.
            The only item currently listed in the call is the governor’s proposed increase to the severance tax on natural gas. Governor Beebe may amend the call to include technical changes to the Arkansas marriage-age law and a bill regarding the unitary status of certain Central Arkansas school districts.
            The governor’s proposal would not increase the natural-gas bills of residential-or-business customers in Arkansas.  Ninety-five percent of the severance-tax revenue would be dedicated to Arkansas roads, utilizing the current formula of 70 percent to state highways, 15 percent to counties and 15 percent to cities.  The other 5 percent would go to general revenue.
            By conservative estimates, the new severance-tax rate would generate about $57 million for the State in the first year, increasing each year and reaching the $100 million mark by the year 2013.
            Governor Beebe hopes the special session will last the shortest requisite length of three days to minimize the cost to taxpayers.