Arkansas House Bill HB1308

Arkansas 2023 Regular Session

• Introduced: 1/27/23
• Refer: 1/30/23
• Report Pass: 2/8/23
• Engrossed: 2/9/23
• Refer: 2/9/23
• Report Pass: 2/16/23
• Enrolled: 2/20/23
• Chaptered: 2/24/23
• Passed: 2/24/23

Caption

To Amend The Law To Provide For Changes Related To Arkansas Constitution, Amendment 101; And To Declare An Emergency.

Impact

The bill directly impacts municipal and county financing capabilities by allowing them to leverage sales tax revenues for bond issuance dedicated to surface transportation projects. This change is seen as a vital step in addressing the immediate funding needs for infrastructure improvements, especially given the impending expiration of a similar tax under Arkansas Constitution, Amendment 91, which could lead to a funding shortfall. By facilitating the issuance of bonds in this manner, local governments could enhance their ability to maintain and develop essential transportation infrastructure.

Summary

House Bill 1308 seeks to amend existing laws regarding the use of revenues generated from sales and use taxes in Arkansas, specifically concerning surface transportation funding. It allows municipalities and counties to pledge their share of a temporary one-half percent sales and use tax to secure bonds for surface transportation projects. The bill outlines the procedures by which these bonds can be issued, contingent upon voter approval, thereby enabling local governments to access necessary funds for critical infrastructure improvements.

Sentiment

The sentiment surrounding HB 1308 appears to be generally positive among legislators, with significant support evident during the voting, where the bill passed with a vote of 28 to 3. The proactive approach of the bill is appreciated as it addresses urgent transportation needs while providing a structured method for municipalities to secure necessary funding. However, some concerns may exist regarding the long-term reliance on sales tax revenues for bond securitization and the implications it may have on local fiscal autonomy.

Contention

Notable points of contention mainly revolve around the authorization process for bond issuance, which requires public voter approval. While proponents argue this ensures democratic oversight, opponents may raise questions about the potential burden of tax-dependent financing on constituents. There may also be discussions regarding how such measures align with broader fiscal policies and funding strategies for local governments. The bill's emergency clause emphasizes the urgency of passing this legislation to prevent delays in essential surface transportation improvements, which may also fuel debated priorities within state funding narratives.