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Thursday, July 24, 2014, 3:06 p.m.
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Beebe vetoes tax exemption for drilling sand

By The Associated Press

This article was published March 17, 2014 at 10:04 a.m.

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.

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Displaying 1 - 8 of 8 total comments

mhck52 says... March 17, 2014 at 12:07 p.m.

There he is, the anti-business Beebe. Do what the judge tells you and some Democrat will ignore it.

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lazybar says... March 17, 2014 at 12:56 p.m.

several years ago as gas trucks tore up county roads the companies would do a cost share to fix roads.hotels,gas stations,and local businesses saw a surge in business.farmers were buying new trucks and equipment.then someone thought it would be a great idea to jack the excise tax up so counties outside fayetteville shale could share in the wealth.gas companies then went to minimum production and drill sending workers to penn and tex.natural gas may be the clean burning fuel that replaces coal but arkansas will see little benefit from it.

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DontDrinkDatKoolAid says... March 17, 2014 at 1:35 p.m.

Sand as equipment? New one on me.

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RBBrittain says... March 17, 2014 at 6:13 p.m.

@mhck52: That's not the problem; the problem is the constitutional restrictions on fiscal sessions. In Gov. Beebe's (and Richard Weiss') opinion, this NON-appropriations matter can ONLY be considered in a regular or special session *UNLESS* 2/3rds of the legislature agrees to consider it in the fiscal session. (However, IMO it was legal because it was in DF&A's appropriations *BILL*; the rules for fiscal sessions added by Amendment 86 on their face only limit fiscal sessions to appropriations *BILLS*, not appropriations themselves. I'm not a lawyer, but I used to work in state government finance; only the Arkansas Supreme Court can say for certain.)

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RBBrittain says... March 17, 2014 at 6:24 p.m.

Ironically, by using his line-item veto power Gov. Beebe implicitly acknowledged it WAS an "appropriation bill", and thus LEGAL for the fiscal session IMO. Indeed, if you read Constitution Article 6, Section 17 carefully, his vetoing a NON-appropriation line in an appropriation bill is ITSELF constitutionally questionable; only an "item or items of appropriation" can be vetoed without vetoing the WHOLE bill.

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DontDrinkDatKoolAid says... March 17, 2014 at 6:46 p.m.

RBB, I thinks you will not be invited to Gov. BB's X-Mass Dinner this year.

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Pacorabone says... March 17, 2014 at 7:20 p.m.

This do nothing( good) Gov does only 1 thing... Veto anything that would be good for the state and back those things bad for the state... Looks like someone might be looking to join another do nothing (good) administration in DC after his term is up. Joining the ranks of blind followers like Sebellius, and Big Sis

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FreeSpiritMan says... March 17, 2014 at 8:13 p.m.

Pacorabone ........ Will you attend Hillary's nomination party and then the victory party in 2016?

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