State road-tax extension will face new foe

Advocacy group forms committee

Supporters of a candidate cavort across the street from a polling place in Little Rock's Hillcrest neighborhood Tuesday afternoon, March 3, 2020.  (Arkansas Democrat-Gazette/John Sykes Jr.)
Supporters of a candidate cavort across the street from a polling place in Little Rock's Hillcrest neighborhood Tuesday afternoon, March 3, 2020. (Arkansas Democrat-Gazette/John Sykes Jr.)

Americans for Prosperity's Arkansas chapter is forming a ballot question committee to campaign against a proposed constitutional amendment that would make permanent the state's half-percent sales tax for highways and roads.

The amendment -- backed by Republican Gov. Asa Hutchinson -- will be Issue 1 on the Nov. 3 general election ballot. It would permanently extend the half-percent sales tax for highways and roads initially approved by voters in 2012 for a 10-year period.

State Department of Finance and Administration officials have projected that it would raise about $205 million a year for highways and about $43 million a year apiece for cities and counties for their roads.

The committee opposing the amendment will be chaired by Americans for Prosperity state chapter Director Ryan Norris, and will be called the "No Permanent Tax. No on Issue 1" committee.

The committee expects to register with the Arkansas Ethics Commission this week, also led by Joshua Silverstein as vice chairman and Alex Varban as treasurer, said Victoria Garcia, a spokeswoman for the chapter.

The group has built a "broad-based coalition" to defeat Issue 1, Norris said Monday in a written statement when asked about the timing of the committee's formation.

"We found a committee is the best avenue for us to work together to defeat this harmful ballot imitative and provide a positive vision for budget reform," he said.

"Voting No on Issue 1 would lower the tax burden on Arkansas families and help hold politicians and government accountable to their original promise of returning the state sales tax back to 6.0 % in 2023," Norris said. "Highway funding should come from taxes directly tied to highway use such as sales tax on cars, car parts and gasoline."

He declined to say how much the committee plans to raise from contributors in its bid to defeat the proposed amendment.

"We plan to use our resources where we think we can make the biggest difference," he said. "The key to the success of this campaign comes down to the work and impact of our grassroots volunteer."

The committee advocating voter approval of Issue 1 is called the Vote For Roads, Vote for Issue 1 committee and registered with the Ethics Commission in October 2019. This committee is chaired by Shannon Newton, president of the Arkansas Trucking Association.

Asked about the formation of the No Permanent Tax, No on Issue 1 committee, Newton said Monday night that good roads are critical to job creation in the state.

"A few years ago, voters overwhelmingly voted for better roads and we must continue the momentum," Newton said in a written statement. "The fact is, Issue 1 will make us safer; it will fix eroding roads and potholes; and not one Arkansan will pay more in taxes."

According to the Vote for Roads, Vote for Issue 1 committee's latest campaign finance report, the committee had raised about $1.8 million and spent about $182,000 through the end of July, leaving a balance of about $1.6 million.

Its largest contributors included Tyson Foods Inc., J.B. Hunt, Jim Walton and Alice Walton, who each contributed $100,000, according to the committee's reports.

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