Funding Recommendations

The funding recommendations contained in the report are as follows:

  • A 10-year, phased-in transfer of the sales tax that is currently collected on the sale of new and used vehicles, tires, batteries, and vehicle parts and services (not a new tax);
  • Indexing the current per-gallon tax on motor fuels to Arkansas’ Highway Construction Cost Index (not a new tax);
  • Allowing the citizens to vote on a temporary 10-year, ½-cent general sales tax dedicated to a statewide bond-financed highway improvement program (a temporary tax that will expire when the bonds are paid off);
  • Implementing a new excise tax on the wholesale price of motor fuels (a new tax collected at the wholesale level);
  • Authorizing by public vote on the re-issuance of GARVEE bonds to improve our Interstates using the revenue stream already in place for that purpose (not a new tax); and,
  • Modifying funding for the current State Aid County Road Program and creating a new State Aid City Street Program.

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