Beebe Convenes Special Section On Natural Gas Tax

Last Updated (Tuesday, 01 April 2008 03:33) Written by Administrator Thursday, 06 March 2008 11:36

LITTLE ROCK, Ark. -- Arkansas Gov. Mike Beebe called on lawmakers Monday to enact the first hike in the state's severance tax on natural gas in a half-century.Beebe said legislators have a chance to make history and create a new funding source for highway improvements in Arkansas without creating a tax burden on most Arkansans.Under the governor's plan, the state would levy a base 5 percent tax on the market value of natural gas extracted, with exemptions built in for certain wells.
The current tax brings in about $660,000 annually, and Beebe claims the new tax would eventually raise $100 million annually.The governor hoped the session will take only three days.