2012 Arkansas Issue 1


Arkansas Constitutional Amendment 91 amended the Constitution of Arkansas to raise sales tax in Arkansas from 6.0% to 6.5% for 10 years to pay for improvements to the Arkansas Highway System. It was referred by the Arkansas General Assembly to voters, and approved by voters during the November 6, 2012 election.

History

Arkansas operated the state highway system debt-free from 1972 until 1999, when voters authorized $575 million in GARVEE bonds for Interstate highway rehabilitation. Arkansas voters reauthorized the IRP in 2011 at the same amount to continue rehabilitating Interstate highway pavements.
Issue 1 sought to allow issuance of $1.3 billion of four-lane highway construction and improvement bonds, with a sales tax increase used as the revenue stream to pay off the bonds in ten years. The sales tax increase would end once the bonds were paid off. The annual Arkansas Poll indicated support in October, with 53 percent in favor and 42 percent opposed.

Support

The Arkansas State Highway and Transportation Department and Arkansas State Highway Commission strongly supported Issue 1.
The tax went into effect on July 1, 2013. Stephens Inc. issued the bonds for the state.
AHTD Director Scott Bennett later testified to the United States House Transportation Subcommittee on Highways and Transit regarding Issue 1's success.