You may have noticed you’re paying more at the pump. That’s because Arkansas motorist have been hit by a new tax that was signed into law earlier in the year that took affect Tuesday.
The legislation, by State Senator Terry Rice of Waldron and signed into law last March is set to raise $95 million for roadway funding. Arkansans will have to cough up an additional 3 cents per gallon increasing the states take from 21.5 cents per gallon to 24.5 cents per gallon. If you have a diesel powered vehicle you will pay and increase of 6 cents per gallon taking your cost up to 28.5 cents of tax per gallon.
The law states the tax can increase yearly by a maximum of one-tenth of one percent.
According to the website for the Institute for Energy Research, motor fuel is one of the most taxed goods in the United States. They report the average state tax per gallon of regular gasoline is 23 cents per gallon and that the average gallon of gasoline in the US has 52 cents of tax attached to it.
The new law is also reliant on at least $35 million in expected revenues from casinos and registration fees on electric and hybrid vehicles, an increase of $200 per vehicle.