HB1048 Summary

• Converts motor fuel tax from 8.5¢ per gallon to 10 3/4% of sales price; converts distillate special fuel tax from 8.5¢ to 11 1/4% of sales price; converts liquefied gas special fuel tax from 7.5¢ to 8 1/4% of sales price

• Changes dyed distillate special fuel tax from 6¢ per gallon to 3% of sales price

• Allocates first $298 million of collected revenues to existing highway distribution formula, with 90% to highway revenue distribution, 5% to highway revenue distribution separately, and 5% to State Highway Special Construction Account

• Dedicates all revenues exceeding $298 million to repayment of bonds issued under Arkansas Constitution Amendment 91; after bonds are repaid, excess revenues revert to distribution under the first tier allocation

• Declares an emergency, making the act effective July 1, 2015, to address declining fuel tax revenues caused by lower fuel prices impacting highway construction and maintenance funding