|
|
| |
| Wed, Dec. 3, 2008 |  |
 |
|
||
| |
Bill to replace off-road fuel sales tax with per-gallon tax advances Thursday, Feb 1, 2007 By Rob Moritz Arkansas News Bureau LITTLE ROCK - Legislation that would replace Arkansas' 6 percent sales tax on the purchase of off-road diesel fuel with a 6-cent per gallon tax won a House committee's endorsement Wednesday. The change proposed in House Bill 1202 is necessary because the recent rise in the cost of diesel fuel has hurt farmers, contractors and others who use the fuel, House Speaker Benny Petrus, D-Stuttgart, told the House Committee on Agriculture, Forestry and Economic Development. The committee endorsed the measure, along with HB 1318, which would allow a $15 per ton income tax credit for the purchase and transportation of excess poultry litter from Northwest Arkansas. Both measures now go to the full House for consideration. Supporters of the per-gallon diesel tax told committee members that the change in the way off-road diesel is taxed would cost the state about $14.8 million annually, but that it was factored into Gov. Mike Beebe's proposed balanced budget. "This is tax reduction to the people who pay these taxes," said Rep. Chris Thyer, D-Jonesboro. The chicken litter credit is not part of the governor's package. The credit would cost the state about $255,000 during fiscal year 2008 and $550,000 in fiscal year 2009, said Tim Leathers, deputy director of the state Department of Finance and Administration. The bill's sponsor, Rep. Scott Sullivan, D-De Queen, said the measure is intended to help poultry growers get rid of their chicken litter. The litter is used as fertilizer, commonly spread on pasture land, and runoff has increased phosphorous levels in rivers and lakes. In 2002, Oklahoma set limits for phosphorus in six of its scenic rivers. One of the waterways, the Illinois River, begins in Arkansas. The two states have been in negotiations to address the issue. In 2003, the Legislature approved a package of bills proposed by the state Soil and Water Commission to reduce phosphorus levels in Northwest Arkansas streams. Sullivan said his bill, backed by Arkansas Farm Bureau, would help the poultry industry by removing excess litter from the region, and would provide a high-quality fertilizer to farmers in the Delta. He said many farmers in eastern Arkansas have expressed an interest in using the litter as a fertilizer but say the cost of transporting it has been an obstacle. Sullivan also said that the projected revenue impact of $255,000 fiscal year 2008 is nothing compared to the economic losses the state would suffer if the poultry industry faltered in the state because of the ongoing legal battle with Oklahoma. Under his bill, Sullivan said, the purchaser of the chicken litter would be required to meet all state environmental requirements for storage and use. |
