LITTLE ROCK — Gov. Mike Beebe has issued a line-item veto on a provision in a budget bill that exempts sales-tax collection on the sand used in the drilling of oil and natural gas.
The governor made the line-item veto Monday in the budget bill for the Department of Finance and Administration's revenue services division. In a letter to lawmakers, Beebe said the Legislature made a substantive change to state law without following the constitutional steps to do so during a fiscal session.
Lawmakers have said they were clarifying state law to follow a Pulaski County circuit judge's ruling that that sand qualifies as equipment, meaning taxes can't be collected on it.
Lawmakers can attempt a veto override when they return to formally adjourn the session Wednesday.