Arkansas Issue 1, the “Transportation Sales Tax Continuation Amendment” to the Arkansas Constitution will be on the ballot on Nov. 3.
It is the continuation of a 0.5% sales tax that was passed in 2012 as the Connecting Arkansas Program and is due to sunset in 2023. The proceeds from this tax have been split among the state, cities and counties with the money spent on street, highway and bridge work and repairs.
Since its initial passage, 13 projects totaling $532.6 million have been completed. Nine more projects worth $525.9 million are under construction. And another 14 projects are scheduled.
Arkansas has one of the largest highway systems in the nation because there are so many rural roads, and many have been deemed unsafe because they have not been adequately maintained . Consequently, there is always a place for tax dollars to go when it comes to roads and their upkeep.
For that reason, we fully appreciate what this half-percent of sales tax has done for the state over the years. And we would be the first in line to support such a continuation of the tax — if it was that, a continuation.
Independent reporting for Pine Bluff & Jefferson County since 1879.
But the replacement for this old tax is a continuation of that tax with no sunset clause, meaning that it will forever be part of the state’s constitution if it is passed. Because the sunset clause — or expiration date — has been removed from this version, we are recommending a “no” vote on Issue 1.
We have a few of reasons for not liking this version of the tax measure. One is the fear that the proceeds from this tax will just become part of the road tax fabric, indistinguishable from any other revenue stream.
Currently, as this tax is being promoted, much is being made of all of the projects that have been completed and that are planned. In short, one can see exactly where this money has gone or is going. Without that sunset clause and the need to get the tax reapproved by voters, we doubt anything will ever be said again about where that money has gone because there will be no need to. It will just be there, forever.
Another reason is that we do not know where the state will be in 10 years, which is the typical sunset period for a tax such as this. Much can happen in a decade. And if voters feel in 10 years that the money has been well spent and that the roads, streets, highways and bridges have been maintained, those in favor of such a re-passage of the tax should have no trouble at the polls.
And finally, at some point, we have to stop with the sales-tax increases. A story last year in the Arkansas Democrat-Gazette said that Arkansas and Tennessee were virtually tied for having the highest state and local tax structure across all 50 states. That is not something to be happy about, particularly for a state that comes in last or near last in so many categories. With a sunset clause, the option would be there in 10 years to defeat such a measure if we do indeed get tired of such a high sales tax. But if this is passes with no sunset clause, that tax will forever be baked into our pocketbooks.
Our choice then would be to have this particular measure defeated and for a like measure — with a sunset clause — to be put before voters the next time around.