Signed by Governor Mike Beebe

Vote Smart's Synopsis:

Vote to pass a bill that reduces the excise tax on gross proceeds from the sale of natural gas and electricity to manufacturers, effective July 1, 2011.

Highlights:

• Reduces the excise tax levied on gross proceeds from the sale of natural gas and electricity to a manufacturer for direct use in the manufacturing process from a rate of 3.125 percent to a rate of 2.625 percent, beginning July 1, 2011 (Sec. 2).

• Defines "manufacturer" as a generator of electric power who operates a new or existing generating facility that uses combined-cycle gas turbine technology (Sec. 2).

• Specifies that when the amount of tax savings resulting from this reduction reaches $27 million during a fiscal year, the Director of the Department of Finance and Administration shall not process any further refund claims from taxpayers seeking to claim the reduced tax rate (Sec. 2).

• Extends the statue of limitations for refunds and amended returns for 1 year (Sec. 2).

• Specifies the excise tax rate levied on gross proceeds derived from the sale of natural gas and electricity to a manufacturer to operate a new or existing generating facility as follows (Sec. 2):
• 5.125 percent beginning July 1, 2011;
• 4.125 percent beginning July 1, 2012; and
• 2.625 percent beginning July 1, 2013.

• This act is an emergency act and will become effective on July 1, 2011 (Sec. 4).

Full Bill Text