Why, in its own words

Why you should vote “no” on Ballot Issue 1. Taken from text:

Section 2(f)(2): “Other fees or taxes that are dedicated to the repayment of the bonds”; means such statutes presently on the books and those the Legislature could add in the future.

Section 3(a)(1): “Except for food and food ingredients . . .”; the largest “businesses” in Arkansas—schools and government itself—will be subject to the new tax. How much pressure does this add to increase taxes in other areas? Utilities alone can be significant. And the new revenue is outside control by the Legislature.

Section 4(d)(1): “. . . the sales tax and use tax will be collected over an approximate 10-year period and so long as the bonds are outstanding. (2) The sales and use tax shall terminate upon payment in full of the bonds.” Note that the language does not definitively end the tax in 10 years. Further, schools for a long time have used the device of refinancing bonds to protect and produce additional revenue for purposes beyond that necessary to pay principal and interest on issued debt-service bonds. Why would such practice not happen in this instance?

Then the language in Section 22: “. . . and permanently dedicating one cent per gallon of the proceeds derived from the existing motor fuel and distillate fuel taxes to the State Aid Street Fund.”

This reduces the amount of money available to the state Highway Department for its operation and maintenance. Counties are going to demand similar diversion.

TOM EASTERLY Hot Springs Village