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Arkansas Attorney General rejects severance tax initiative

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February 23, 2011

LITTLE ROCK, Arkansas: A supporter of raising the severance tax on natural gas companies in the state must try again to get his proposal approved for circulation. Sheffield Nelson, a former gas company executive and gubernatorial candidate, is proposing the measure to help fill an estimated $15 billion gap between highway needs and projected revenues over the next ten years.[1]

Nelson filed paperwork with the Arkansas Attorney General in order to get the measure approved for circulation. However, Attorney General Dustin McDaniel rejected the proposed measure on February 22, 2011, citing ambiguities in the text of the proposal. Nelson stated that he would revise and re-submit the proposal in the days following the rejection.[2]

In order to get the measure on the ballot, signatures from at least 8 percent of voters who cast ballots in the last gubernatorial election must be collected by the signature filing deadline, which is July 6, 2012. This amounts to about 62,000, according to reports.

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