Arkansas Issue 1, Transportation Sales Tax Continuation Amendment (2020)
Arkansas Issue 1 | |
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Election date November 3, 2020 | |
Topic Taxes and Transportation | |
Status | |
Type Constitutional amendment | Origin State legislature |
Arkansas Issue 1, the Transportation Sales Tax Continuation Amendment, was on the ballot in Arkansas as a legislatively referred constitutional amendment on November 3, 2020.[1][2] It was approved.
A "yes" vote supported continuing a 0.5% sales tax, with revenue dedicated to state and local highways, roads, and bridges, that would otherwise expire in 2023. |
A "no" vote opposed continuing the 0.5% sales tax, thereby allowing the tax to expire once bond debt authorized in 2012 is repaid in 2023. |
Election results
Arkansas Issue 1 |
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Result | Votes | Percentage | ||
660,018 | 55.33% | |||
No | 532,915 | 44.67% |
Overview
What did Issue 1 do?
- See also: Measure design
Issue 1 amended the state constitution to make permanent a 0.5% sales tax, authorized by Issue 1 of 2012, with revenue directed to state and local transportation, including highways, roads, and bridges. The sales tax was temporarily authorized by voters in 2012 and set to expire in 2023.
The sales tax could not be applied to food or food ingredients.
The Department of Finance and Administration estimated that the 0.5% sales tax authorized by the amendment would generate $293.7 million in revenue based on 12 months of collections. Issue 1 was designed to allocated in the following way:[3]
- 70% ($205.59 million) to state highways,
- 15% ($44.055 million) to county transportation, and
- 15% ($44.055 million) to city transportation.
What was Issue 1 (2012)?
Voters authorized the temporary 0.5% sales tax that would be made permanent by this amendment in 2012 through approval of Issue 1 (2012), which is now Amendment 91 in the state constitution. The amendment was approved by a vote of 58% to 42%. Issue 1 authorized the 0.5% sales tax to be levied until the general obligation bonds in the amount of $1.3 billion for the construction of a four-lane highway were repaid (estimated to be in 2023).
Text of measure
Ballot title
The ballot title for Issue 1 (2020) is as follows:[2]
“ |
An Amendment to the Arkansas Constitution to continue a levy of a one-half percent sales and use tax for state highways and bridges; county roads, bridges, and other surface transportation; and city streets, bridges, and other surface transportation after the retirement of the bonds authorized in Arkansas Constitution, Amendment 91, as special revenue to be distributed under the Arkansas Highway Revenue Distribution Law.[4] |
” |
Ballot summary
The ballot summary (also called the Popular Name) of tIssue 1 is as follows:[2]
“ |
An Amendment to the Arkansas Constitution Continuing a One-Half Percent (0.5%) Sales and Use Tax for State Highways and Bridges; County Roads, Bridges and Other Surface Transportation; and City Streets, Bridges, and Other Surface Transportation After the Retirement of the Bonds Authorized in Arkansas Constitution, Amendment 91.[4] |
” |
Constitutional changes
- See also: Amendments, Arkansas Constitution
Issue 1 added a new amendment to the state constitution. The following underlined text was added to the constitution:[2] Note: Use your mouse to scroll over the text below to see the full text.
§ 1. Intent of amendment.
(a) Arkansas Constitution, Amendment 91, levies a one-half percent sales and use tax to provide additional funding for the state's four-lane highway system, county roads, and city streets.
(b) The one-half percent sales and use tax under Arkansas Constitution, Amendment 91, shall be abolished when there are no bonds outstanding to which tax collections are pledged as provided in this amendment.
(c) Notwithstanding Arkansas Constitution, Amendment 91, § 8, it is the intent of this amendment that the sales and use tax levied under Arkansas Constitution, Amendment 91, continue after the retirement of the bonds authorized in Arkansas Constitution, Amendment 91, to provide special revenue for use of maintaining, repairing, and improving the state’s system of highways, county roads, and city streets.
§ 2. Excise tax.
(a)(1) Except for food and food ingredients, an additional excise tax of one-half percent (0.5%) is levied on all taxable sales of tangible personal property, specified digital products, a digital code, and services subject to the tax levied by the Arkansas Gross Receipts Act of 1941, Arkansas Code § 26-52-101 et seq.
- (2) The tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of all other Arkansas gross receipts taxes.
(b)(1) Except for food and food ingredients, an additional excise tax of one-half percent (0.5%) is levied on all tangible personal property, specified digital products, a digital code, and services subject to the tax levied by the Arkansas Compensating Tax Act of 1949, Arkansas Code § 26-53- 101 et seq.
- (2) The tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of Arkansas compensating taxes.
§ 3. Disposition of revenue.
(a) The revenue from the taxes levied under § 2 of this amendment shall be distributed to the State Highway and Transportation Department Fund, the County Aid Fund, and the Municipal Aid Fund in the percentages provided in sections § 27-70-201 and § 27-70-206 of the Arkansas Highway Revenue Distribution Law.
(b) No revenue derived from the taxes levied under § 2 of this amendment shall be used to secure bonds issued by the State Highway Commission.
§ 4. Effective date.
(a) If the Chief Fiscal Officer of the State determines that a written statement under Arkansas Constitution, Amendment 91, § 8(b), has been filed with the Chief Fiscal Officer of the State before June § 2 of this amendment shall be levied and collected on and after July 1, 2023.
(b) If a written statement under Arkansas Constitution, Amendment 91, § 8(b), has not been filed with the Chief Fiscal Officer of the State before June 1, 2023, the tax under § 2 of this amendment shall not be levied and collected until the first day of the first calendar quarter beginning more than thirty (30) days after a written statement under Arkansas Constitution, Amendment 91, § 8(b), is filed with the Chief Fiscal Officer of the State. [4]
Readability score
- See also: Ballot measure readability scores, 2020
Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legisalture wrote the ballot language for this measure.
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Support
Vote for Roads. Vote for Issue 1. led the campaign in support of the amendment.
Supporters
The amendment was sponsored by Rep. Jeff Wardlaw (R) as House Joint Resolution 1018.
Officials
- Arkansas Governor Asa Hutchinson (R)
- Arkansas State Senator Lance Eads (R)
- Arkansas State Representative Jeff R. Wardlaw (R)
- Arkansas Attorney General Leslie Rutledge (R)
Organizations
Arguments
Opposition
Vote No on Issue 1, No Permanent Sales Tax led the campaign in opposition to the Issue 1.[5]
The amendment received 30 no votes in the House and seven no votes in the Senate. Click here to see vote totals by party.
Opponents
Organizations
- Americans for Prosperity
- Americans for Tax Reform
- Arkansas Community Organizations
- Audubon Arkansas
- Central Arkansas Sierra Club
- Downton Little Rock Neighborhood Association
- Garland County Tea Party
- Northeast Arkansas Tea Party
Arguments
Campaign finance
Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
---|---|---|---|---|---|
Support | $2,296,800.54 | $7,291.56 | $2,304,092.10 | $2,286,176.12 | $2,293,467.68 |
Oppose | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Total | $2,296,800.54 | $7,291.56 | $2,304,092.10 | $2,286,176.12 | $2,293,467.68 |
Ballotpedia identified one committee registered to support the amendment: Vote for Roads. Vote for Issue 1. The committee reported $2.3 million in contributions and $2.29 million in expenditures. The largest donors were Jim Walton, Alice Walton, JB Hunt, and Tyson Foods, Inc., which each gave $100,000. Tyson Foods, Inc. also gave $3,600 in in-kind contributions.
Ballotpedia identified one committee registered to oppose the amendment: No Permanent Tax. No On Issue 1. The committee had not reported campaign finance activity.[6]
Support
The following table includes contribution and expenditure totals for the committee in support of the amendment.[6]
Committees in support of Issue 1 | |||||
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Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
Vote for Roads. Vote for Issue 1. | $2,296,800.54 | $7,291.56 | $2,304,092.10 | $2,286,176.12 | $2,293,467.68 |
Total | $2,296,800.54 | $7,291.56 | $2,304,092.10 | $2,286,176.12 | $2,293,467.68 |
Donors
The following were the donors who contributed $50,000 or more to the support committee.[6]
Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
---|---|---|---|
Jim Walton | $100,000.00 | $3,600.00 | $103,600.00 |
Alice Walton | $100,000.00 | $0.00 | $100,000.00 |
JB Hunt | $100,000.00 | $0.00 | $100,000.00 |
Tyson Foods, Inc | $100,000.00 | $0.00 | $100,000.00 |
McGeorge Contracting Co., Inc. | $63,000.00 | $0.00 | $63,000.00 |
Methodology
To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.
Polls
In an October 2020 poll by Talk Business & Politics and Hendrix College, 647 likely voters were asked the following question:[7]
“ |
Thinking about the November election, there will be a proposed amendment to the Arkansas Constitution on the ballot regarding highway funding, known as Issue 1. Issue 1 would continue a levy of a one-half percent sales and use tax for state highways and bridges; county roads, bridges, and other surface transportation; and city streets, bridges, and other surface transportation. If the election were being held today, would you vote for or against Issue 1?[4] |
” |
Poll results are shown below:
Arkansas Issue 1 | |||||||||||||||||||
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Poll | Support | Oppose | Undecided | Margin of error | Sample size | ||||||||||||||
Talk Business & Politics and Hendrix College poll 10/11/20 - 10/13/20 | 59.0% | 31.0% | 10.0% | +/-4.9 | 647 | ||||||||||||||
Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to editor@ballotpedia.org. |
Background
Issue 1 of 2012 and the Connecting Arkansas Program
The Arkansas Sales Tax Increase Question, also known as Issue 1, was a legislatively referred constitutional amendment on the November 6, 2012 statewide ballot in the state of Arkansas, where it was approved. The measure implemented a half-percent sales tax in the state. The revenue generated from the tax was used to fund the Connecting Arkansas Program (CAP).[8] As of June 2019, 13 projects totaling $532.6 million had been completed, nine projects totaling $525.9 million were under construction, and 14 projects were scheduled for construction. The status of the 36 CAP projects may be found here.
Arkansas Issue 1 (2012) | ||||
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Result | Votes | Percentage | ||
592,980 | 58.21% | |||
No | 425,733 | 41.79% |
Highway Funding in Arkansas
The tax continuation amendment is part of what Arkansas Governor Asa Hutchinson (R) called "the largest highway plan in the state's history." The other part of the highway funding plan is Act 416 of 2019.[9]
Act 416 of 2019 (Senate Bill 336)
Act 416 (Senate Bill 336) was designed "to provide additional revenue for the maintenance and repair of highways, streets, and bridges in the state." The bill was passed in the State Senate (27-8) on February 21, 2019. The bill was passed in the House (71-26) with amendments on March 4, 2019. The Senate concurred with the House's amendments on March 5, 2019. It was signed into law by Arkansas Governor Asa Hutchinson (R) on March 12, 2019.
Act 416 established a new wholesale tax on fuel that was expected to raise gas prices by 3 cents a gallon and diesel by 6 cents. The bill was also designed to increase gasoline taxes to 24.5 cents per gallon and diesel taxes to 28.5 cents per gallon. The bill also imposed an additional annual registration fee of $100 dollars on hybrid vehicles and $200 dollars on electric vehicles.[10][9]
Referred amendments on the ballot
From 1996 through 2018, the state legislature referred 28 constitutional amendments to the ballot. Voters approved 22 and rejected six of the referred amendments. All of the amendments were referred to the ballot for general elections during even-numbered election years. The average number of amendments appearing on the general election ballot was between two and three. The approval rate at the ballot box was 78.57 percent during the 20-year period from 1996 through 2018. The rejection rate was 21.43 percent.
Legislatively-referred constitutional amendments, 1996-2018 | |||||||||
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Total number | Approved | Percent approved | Defeated | Percent defeated | Annual average | Annual median | Annual minimum | Annual maximum | |
28 | 22 | 78.57% | 6 | 21.43% | 2.33 | 2.50 | 1 | 3 |
Tax policies on the ballot in 2020
- See also: Taxes on the ballot
In 2020, voters in 14 states voted on 21 ballot measures addressing tax-related policies. Ten of the measures addressed taxes on properties, three were related to income tax rates, two addressed tobacco taxes, one addressed business-related taxes, one addressed sales tax rates, one addressed fees and surcharges, and one was related to tax-increment financing (TIF).
Click Show to read details about the tax-related measures on statewide ballots in 2020.
Tax-related policy ballot measures in 2020 | |||||
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Income Tax
Business-Related Taxes
Property-Related Taxes
In Florida, Georgia, Louisiana, New Jersey, and Virginia, voters also decided eight ballot measures related to exemptions, adjustments, and payments: Florida Amendment 5, Florida Amendment 6, Referendum A, Louisiana Amendment 2, Louisiana Amendment 5, Louisiana Amendment 6, New Jersey Question 2, and Virginia Question 2. Sales Tax
Tobacco
Fees
TIF
|
Path to the ballot
- See also: Amending the Arkansas Constitution
To put a legislatively referred constitutional amendment before voters, a simple majority vote is required in both the Arkansas State Senate and the Arkansas House of Representatives.
The amendment was sponsored by Rep. Jeff Wardlaw (R) as House Joint Resolution 1018. The state House approved the amendment 67-30 with three not voting on March 4, 2019. The state Senate approved the amendment 25-7 with three not voting on March 7, 2019, certifying it to appear on the November 2020 ballot. In the House, 45 Republicans and 22 Democrats voted in favor of HJR 1018. Twenty-nine Republicans and one Democrat, Rep. John Walker, voted against HJR 1018. In the Senate, 17 Republicans and eight Democrats voted in favor of HJR 1018. Seven Republicans and zero Democrats voted against it.[1]
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How to cast a vote
- See also: Voting in Arkansas
Click "Show" to learn more about voter registration, identification requirements, and poll times in Arkansas.
How to cast a vote in Arkansas | |||||
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Poll timesIn Arkansas, all polls are open from 7:30 a.m. to 7:30 p.m. on Election Day. An individual who is in line at the time polls close must be allowed to vote.[30] Registration requirements
To vote in Arkansas, one must be a citizen of the United States and a resident of Arkansas. A voter must be 18 years of age or older on or before Election Day, not be a convicted felon whose sentence has not been discharged or pardoned, and not be adjudged as mentally incompetent.[31] Registration must be completed no later than 30 days before the election in which a voter wishes to participate. Citizens must complete and submit a voter registration application to their county clerk or other authorized voter registration agency. For voters that submit applications by mail, the date of postmark will be considered the submission date. Applications may be obtained at the following locations:[31]
Automatic registrationArkansas does not practice automatic voter registration. Online registration
Arkansas does not permit online voter registration. Same-day registrationArkansas does not allow same-day voter registration. Residency requirementsArkansas law requires 30 days of residency in the state before a person may vote. Verification of citizenshipArkansas does not require proof of citizenship for voter registration. An individual must attest that they are a U.S. citizen when registering to vote. According to the state's voter registration application, a voter who provides false information "may be subject to a fine of up to $10,000 and/or imprisonment of up to 10 years under state and federal laws."[32] All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment.[33] As of January 2025, six states — Alabama, Arizona, Georgia, Kansas, Louisiana, and New Hampshire — had passed laws requiring verification of citizenship at the time of voter registration. However, only two of those states' laws were in effect, in Arizona and New Hampshire. In three states — California, Maryland, and Vermont — at least one local jurisdiction allowed noncitizens to vote in some local elections as of November 2024. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters. Verifying your registrationThe site Voter View, run by the Arkansas Secretary of State's office, allows residents to check their voter registration status online. Voter ID requirementsArkansas requires voters to present photo identification while voting. The identification must include the voter’s name and photograph. It must be issued by "the United States, the State of Arkansas, or an accredited postsecondary educational institution in the State of Arkansas." If the identification has an expiration date on it, it cannot be expired for "more than four (4) years before the date of the election in which the voter seeks to vote."[31] The following list of accepted ID was current as of July 2024. Click here for the Arkansas Secretary of State's page on accepted ID to ensure you have the most current information.
"A person who is a resident of a long-term care or residential care facility licensed by the state of Arkansas is not required to verify his or her registration by presenting a document or identification card as described above when voting in person, but must provide documentation from the administrator of the facility attesting that the person is a resident of the facility," according to the Arkansas Secretary of State’s office.[31] Voters can obtain a voter verification card at their county clerk's office: "[V]oters will be required to complete an affidavit stating they do not possess such identification, and must provide documentation containing their full legal name and date of birth, as well as documentation containing their name and residential address."[34] |
See also
External links
- Full Text of HJR 1018
- Proposed and Referred Ballot Measures for the 2020 General Election
- Issue 1 information
Support |
Opposition |
Footnotes
- ↑ 1.0 1.1 Arkansas State Legislature, "House Joint Resolution 1018," accessed March 7, 2019
- ↑ 2.0 2.1 2.2 2.3 Arkansas Legislature, "Full Text of House Joint Resolution 1018," accessed March 7, 2019
- ↑ Arkansas State Legislature, "Department of Finance and Administration HJR 1018 impact statement," accessed February 27, 2020
- ↑ 4.0 4.1 4.2 4.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid
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tag; name "quotedisclaimer" defined multiple times with different content - ↑ Americans for Prosperity, "No Permanent Tax," accessed October 1, 2020
- ↑ 6.0 6.1 6.2 Arkansas Ethics Commission, "Filings," accessed August 18, 2020
- ↑ Talk Business & Politics, "Poll: Highway funding proposal Issue 1 poised to pass," accessed October 21, 2020
- ↑ Connecting Arkansas Program, "Overview," accessed June 20, 2019
- ↑ 9.0 9.1 UA Little Rock Public Radio, "Arkansas Governor Signs $95 Million Highway Funding Bill Into Law," accessed March 25, 2019
- ↑ KTVE News, "Arkansas highway bill to impose tax on hybrid and electric cars," accessed March 25, 2019
- ↑ Arizona Secretary of State, "Initiative 31-2020," February 14, 2020
- ↑ Colorado Secretary of State, "2019-2020 Initiative Filings, Agendas & Results," accessed April 17, 2020
- ↑ Illinois State Legislature, "Senate Joint Resolution Constitutional Amendment 1," accessed May 2, 2019
- ↑ Illinois State Board of Elections,"Committee Search," accessed May 28, 2019
- ↑ Alaska Division of Elections, "Alaska's Fair Share Act," accessed January 13, 2020
- ↑ Anchorage Daily News, "Group says it has enough signatures to put Alaska oil tax initiative on ballot," January 14, 2020
- ↑ APOC, "Online Reports," accessed January 7, 2020
- ↑ Nebraska Secretary of State, "Initiative Petition text," accessed August 22, 2019
- ↑ California Attorney General, "Initiative 19-0008," September 17, 2019
- ↑ California the Legislative Analyst's Office, "A.G. File No. 2019-0008," February 5, 2018
- ↑ California State Legislature, "Assembly Concurrent Resolution 11," accessed May 8, 2019
- ↑ Colorado General Assembly, "SCR 20-001," accessed June 10, 2020
- ↑ Arkansas State Legislature, "House Joint Resolution 1018," accessed March 7, 2019
- ↑ UA Little Rock Public Radio, "Arkansas Governor Signs $95 Million Highway Funding Bill Into Law," accessed March 25, 2019
- ↑ Arkansas Ethics Commission, "Filings," accessed August 18, 2020
- ↑ Colorado State Legislature, "House Bill 20-1427," accessed June 15, 2020
- ↑ Oregon State Legislature, "HB 2270," accessed June 25, 2019
- ↑ Colorado Secretary of State, "2019-2020 Initiative Filings, Agendas & Results," accessed February 10, 2020
- ↑ Nebraska State Legislature, "LR14CA," accessed April 5, 2019
- ↑ Arkansas Code, "Title 7, Chapter 5, Subchapter 304," accessed April 3, 2023
- ↑ 31.0 31.1 31.2 31.3 Arkansas Secretary of State, "Voter Registration Information," accessed July 29, 2024
- ↑ Arkansas Secretary of State, "Arkansas Voter Registration Application," accessed November 1, 2024
- ↑ Under federal law, the national mail voter registration application (a version of which is in use in all states with voter registration systems) requires applicants to indicate that they are U.S. citizens in order to complete an application to vote in state or federal elections, but does not require voters to provide documentary proof of citizenship. According to the U.S. Department of Justice, the application "may require only the minimum amount of information necessary to prevent duplicate voter registrations and permit State officials both to determine the eligibility of the applicant to vote and to administer the voting process."
- ↑ Arkansas Secretary of State, "Frequently Asked Questions," accessed July 29, 2024
State of Arkansas Little Rock (capital) | |
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