Arkansas Fuel Taxes Highest of Any Surrounding State

Posted on September 16th, 2009

During the New Revenue Subcommittee of the Blue Ribbon Committee on Highway Finance meeting this morning we were distributed a table of State Motor-Fuel Tax Rates. The source of the data on the chart is the U.S. Department of Transportation, Highway Statistics 2006, Washington DC 2008, Table MF-121T. There was a note that mentions that the rates for New York, Florida, West Virginia, Nebraska, and Massachusetts had changed, but I have not included them on this chart showing surrounding states.

Arkansas economic development depends upon having a competitive tax structure. We have some hard choices to make and need to get our priorities in order. To simply say, “The government needs more money,” is not an option. We very well may need to fund infrastructure, but to do so without seriously looking at cutting other expenditures is irresponsible. Arkansas is already paying the price for irresponsible tax policy as it relates to economic development. Bribing select large companies doesn’t work, but lowering the tax burden on ALL of the small businesses and entrepreneurs does work. Interestingly enough, when responsible tax policy produces economic growth in small businesses, then revenues for critical infrastructure increases also. It is time for the tail (state government) to stop wagging the dog (small businesses).

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