Signed by Governor Asa Hutchinson

Vote Smart's Synopsis:

Vote to pass with amendment a bill that establishes taxes on fuel and electric vehicles, as well as other provisions.

Highlights:

• Appropriates all revenue over $31.2 million from the net casino gaming receipts tax to the State Highway and Transportation Department Fund (Sec. 2). 

• Requires the Chief Fiscal Officer of the State to transfer funds up to $35 million from the Restricted Reserve Fund to the State Highway and Transportation Department Fund on the last day of each fiscal year beginning in 2020 (Sec. 2). 

• Establishes a sales tax on motor fuel for each fiscal year beginning in 2020 that is equal to the previous calendar year’s average tax on motor fuel multiplied by 1.6 percent (Sec. 6). 

• Establishes a sales tax on diesel fuel for each fiscal year beginning in 2020 that is equal to the previous calendar year’s average tax on diesel fuel multiplied by 2.9 percent (Sec. 6). 

• Specifies that the sales tax increases on both motor fuel and diesel fuel will be capped at 0.1 cents-per-gallon for each fiscal year (Sec. 6). 

• Establishes an additional $200 annual fee for each registered electric vehicle and an additional $100 annual fee for each registered hybrid vehicle (Sec. 7). 

• Specifies that the revenue from the additional electric and hybrid vehicle fees will be distributed to the State Highway and Transportation Department Fund (Sec. 7).

Full Bill Text