Tax Advice


Sponsored By:

   The Nation  |  Business  |  Equipment  |  Features


Arkansas truck lobby to try again to increase state's diesel tax

Arkansas Trucking Association President Lane Kidd told Arkansas Business that the association would launch a campaign this summer and fall for roads and bridges in which the trucking industry will offer “to pay a higher diesel tax.”

By LYNDON FINNEY
The Trucker Staff

1/31/2012

LITTLE ROCK, Ark., — The Arkansas Trucking Association will make another attempt to increase the state’s diesel tax in the 2013 legislative session.

Arkansas Trucking Association President Lane Kidd told Arkansas Business that the association would launch a campaign this summer and fall for roads and bridges in which the trucking industry will offer “to pay a higher diesel tax.”

The Arkansas association had backed a plan during the 2011 legislative session to raise the state diesel tax by 5 cents per gallon and in exchange for supporting another bill to exempt commercial trucks and semi-trailers from the state sales tax.

The Arkansas legislature approved the sales tax exemption, but referred to the voters the proposal to increase the diesel tax.

But the association backed off the tax proposal when voters indicated they would defeat the increase.

Instead, the ATA threw its support behind a renewal of the existing Interstate Highway Rehabilitation Bond Program and a repeal of the trucks and trailers sales tax exemption law.

Arkansas voters overwhelmingly approved the bond renewal, and, of course, defeated the tax exemption law.

But even with the bond renewal program, the state said it will run short of funds needed to fix all the state’s highways in need of repair.

“Folks have to realize that somebody has to pay for roads and bridges and like railroads invest in their tracks, we (the trucking industry) must invest in our highways,” Kidd told The Trucker Monday.

Kidd said truckers pay at least 90 percent of the diesel tax in Arkansas.

He would not say how much of an increase the organization would seek in 2013.

____________________________________________________________________________________________________________________

ADVERTISEMENT

THE RECENT INCREASE IN FREIGHT VOLUME MEANS NEW JOB OPPORTUNITIES ON GOTRUCKERS.COM. CLICK FOR MORE DETAILS.

_____________________________________________________________________________________________________________________

Arkansas’ current diesel tax is 47.2 cents a gallon, according to the American Petroleum Institute.

The state is tied with New Mexico for the 18th lowest diesel tax in the nation.

A five-cent a gallon increase would rank Arkansas’ diesel tax the 22rd highest among the 50 states and the District of Columbia. The national average is 54 cents a gallon.

For a complete list of diesel taxes by state, click here.

The Trucker staff can be reached to comment on this article at editor@thetrucker.com.

Find more news and analysis from The Trucker, and share your thoughts, on Facebook.

 

Seven Oaks