The Municipal League supports an increase in the severance tax

Here's the news release it sent out this afternoon:

The Executive Committee of the Arkansas Municipal League, at its meeting in Lake Village Aug. 16-17, voted unanimously to support an increase in the severance tax on natural gas production in Arkansas. Further, the League offers to Gov. Mike Beebe its assistance in organizing a petition drive to place an initiated act on the statewide ballot for the purposes of raising the severance tax rate.

The League supports such an increase in the severance tax rate as would be fairly and equitably comparable to the severance tax rates levied in the states surrounding the state of Arkansas, including the state of Texas, whose severance tax rate can be 160 to 200 times the severance tax rate in Arkansas. The League recognizes the potential of the increased revenue generated from such an increase to greatly aid in addressing the extraordinary highway, road, street and bridge needs throughout the state and in the local jurisdictions, some of which are being caused by the gas industry itself. The League supports the application of increased revenues towards those infrastructure needs.