Ark. governor opposes increase to severance tax

Arkansas governor opposes increase to severance tax on natural gas industry

Associated Press

LITTLE ROCK, Ark. (AP) -- Gov. Mike Beebe says he'll likely vote against a proposed ballot measure that would increase the severance tax on natural gas in Arkansas.

The governor did not elaborate on his opposition to the severance tax, which would be increased to 7 percent under a proposed ballot issue. Backers are still gathering signatures to get the measure on the November ballot.

Wells are now taxed at between 1.25 percent and 5 percent of the value of the gas being taken from the land

Beebe also told reporters Tuesday that he'll likely support a half-cent sales tax increase that would fund road improvements in the state.

The sales tax increase was referred by the Legislature and will be on the November ballot.

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