A $4 million tax break for Arkansas truckers took effect Monday with the start of the new fiscal year, the Associated Press reported.
The tax reduction on commercial vehicles was to have helped the freight industry offset a proposed diesel fuel tax increase for road repairs, and the state’s trucking lobby dropped its support of the diesel tax increase, but the vehicle tax cut stayed on the books, AP said.
Gov. Mike Beebe (D) was not happy about the action, AP said. In the fiscal session earlier this year, the Arkansas House tried to delay the tax break, but was blocked by the Senate.
The $4 million that the state will lose in revenue will come out of the budget for the Arkansas Highway and Transportation Department, AP reported.
Voters last year reauthorized a $575 million highway bond program, making the diesel tax increase unnecessary.
The Arkansas Trucking Association withdrew its support of the diesel tax increase after polling showed the proposal had little chance of success at the ballot box, AP reported.