Ark. Highway Bill to Be Amended To Phase in Diesel Tax Increase

LITTLE ROCK (AP) — The state House has sent highway legislation back to the Senate in preparation of a compromise amendment that would phase in a 4-cent diesel tax increase over a couple of years.

The action Tuesday paves the way for the Senate to amend the bill, which now calls for the diesel tax to be imposed all at once.

The legislation also includes a 3-cent gasoline tax increase, which is to be phased in 1 cent a year.

The House last week fell four votes short of approving the legislation, and sponsors had hoped to give it another try.

However, support deteriorated after weekend lobbying by the trucking industry, which claims that 4 cents at once would be too much for some companies.

Sen. Wayne Dowd, who had amended the bill with the 4-cent diesel tax, was preparing an amendment to phase in the tax Tuesday. But it did not come up for a vote before the Senate

djourned.

Rep. Bobby Glover, one of the lead sponsors, said the compromise amendment would impose a 2 cent diesel tax the first year, and another 2 cents the next.

The fuel-tax increases are part of a package that also includes Gov. Mike Huckabee's $575 million bond issue to speed up interstate improvements. The bond issue would be referred to a special election.