Legislative Report  by State Representative Nate Steel

08/02/11

The Arkansas House of Representatives ended a whirlwind week by passing a flurry of tax cut proposals out of a House committee Friday afternoon.  The bills advanced from the House Revenue and Taxation Committee after leaders of the House and Senate, along with the governor's office, reached compromise about which measures fit best within the state's budget.

One measure passed was SB 276, which reduces the tax on groceries by another half-cent, taking the tax from 2 percent to 1.5 percent.    Another bill approved by the panel would raise the sales tax exemption on used cars.  The exemption currently applies on vehicles costing up to $2,500, but this measure would allow the exemption to apply to cars costing up to $4,000.  Members of the committee also passed a bill that would cut the sales tax Arkansas manufacturers pay for their utilities, taking it down from  3.25 to 2.75 percent.  These proposals have broad reach, and the hope is they will provide needed relief to both individuals and businesses in the Natural State.  All of these measures will next be considered by the full House.

This week, House members also passed highly-anticipated Senate Bill 750, which is aimed at curbing the state's corrections costs.  The bill would lessen sentencing for some non-violent and drug offenses in the state, and it would expand some of our alternative sentencing programs like our drug courts.

The House has also passed a Senate bill designed to cut back on the manufacturing of methamphetamine in the state.  It would restrict sales of cold medicines with pseudoephedrine and ephedrine – the main ingredients - requiring that the medicines be sold by a pharmacist or pharmacy technician.  The bill also gives pharmacists discretion to refuse to sell the medicine if they don't believe there's a valid medical need for it.

Members have been working hard, with full agendas both in committees and on the House floor.  Though there's still much to work through, House leaders are optimistic that we will be able to wrap up the session by April 1, as planned, making this one of the shortest and most cost-effective sessions in recent history.   

In addition to taking up tax cut measures in the full House next week, legislators will also continue working to put forth a plan for congressional redistricting, based on new Census data.  The House State Agencies committee, of which I am a member, will continue reviewing proposals for constitutional amendments to be referred to the ballot.  Together, the House and Senate can refer up to three measures.  Overall, we are on track to conclude what has been an efficient, but productive session, and we're proud to be able to do so in a responsible timeframe.