Gas Tax Petitions Way Short

Arkansas election officials last week rejected petitions seeking an increase in the state’s tax on natural gas production after more than 70% of the signatures were declared invalid.

Elections director Martha Adcock said 21,347 of the 69,774 signatures submitted were registered Arkansas voters. Putting a constitutional amendment on the November ballot requires more than 62,500 valid signatures.

Officials said 322 pages of signatures were rejected for technical reasons, such as not having a visible notary seal. Another 108 pages were not valid because the signatures were in alphabetical order or signatures were in the same handwriting.

However, it’s not over yet. Former utility executive and gubernatorial candidate Sheffield Nelson, who led the campaign to boost the state severance tax on natural gas production, has until Aug. 20 to submit 41,000 valid signatures. The proposal would raise the tax rate to 7% with no exemptions for production costs.

The current rate varies from 1.25% to 5%. The additional revenue would be dedicated to street and highway projects.

The state would have received 70% of the revenue, with 30% going to county and city aid funds. At least $20 million a year would be earmarked for city streets.

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