AR HB1891

Dedicates sales and use tax revenue from new and used motor vehicle sales and auto-related sales and services (parts, tires, batteries, labor, repairs, and diagnostics) to highway, road, street, and bridge construction, reconstruction, and maintenance.

Implements a 10-year phase-in beginning September 1 following the first year when general revenue sales and use tax collections exceed $2.2 billion, gradually shifting tax allocations from 90% general revenue (year 1) to 0% general revenue (year 10).

Allocates 76.6% of motor vehicle tax revenue to state and local highway funds (70% to State Highway and Transportation Department, 15% to County Aid Fund, 15% to Municipal Aid Fund); 8.5% to Property Tax Relief Trust Fund; and 14.9% to Educational Adequacy Fund.

Requires counties and municipalities to submit annual reports to the General Assembly by the first Monday in January detailing how dedicated funds were spent and progress on highway and bridge projects.

Becomes effective July 1, 2011, declared an emergency due to the critical need for highway infrastructure maintenance and its importance to economic development.