In Arkansas, a $4 million tax break for truckers took effect Monday, July 2, and Gov. Mike Beebe’s not happy about it. The state trucking association negotiated the tax break on equipment purchases in exchange for supporting an increase in the diesel fuel tax to pay for roads and bridges. The association, however, dropped its support of the fuel tax increase when it decided the public wouldn’t support it.
Arkansas voters then reauthorized a $575 million bond program for highways, making the fuel tax increase unnecessary. The governor tried to get the equipment tax break repealed, but the state senate refused.
The $4 million in lost revenue will now come out of the state highway department’s budget.