Arkansas’ higher severance tax on natural gas that will be levied beginning Jan. 1 is expected to generate $20 million in the final six months of fiscal 2009.

Kim Arnall, assistant director of fiscal services for the Bureau of Legislative Research, told legislative transportation committees last week that the tax should bring in $73.6 million in fiscal 2010, the first full year of collections. Arnall said severance tax revenues should increase to $101.5 million in fiscal 2015 before declining to $96.9 million in fiscal 2017.

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