AR HB1260

Dedicates sales and use taxes collected on new and used motor vehicles, trailers, and semitrailers to the State Highway and Transportation Department Fund once annual general revenue sales and use tax collection exceeds $2.5 billion, with amounts increasing from $30 million in year one to $120 million in year four and beyond.

Levies a wholesale sales tax on motor fuel beginning April 1, 2020, calculated at 3.5% of the twelve-month average wholesale selling price per gallon, converted to a cent-per-gallon rate rounded to the nearest 0.1 cent.

Levies a wholesale sales tax on distillate special fuel beginning April 1, 2020, using the same 3.5% calculation methodology as motor fuel, excluding off-road distillate fuel.

Distributes wholesale fuel sales tax revenues as 70% to State Highway and Transportation Department Fund, 15% to County Aid Fund, and 15% to Municipal Aid Fund.

Declares an emergency and makes the act effective July 1, 2019, citing the critical need for highway, road, street, and bridge construction and maintenance for public health, safety, and economic development.