GOP splits on tax for gas
Posted on Saturday, March 15, 2008
A former state Republican Party co-chairman who has proposed a ballot measure to increase the state severance tax panned Friday the current GOP chairman for opposing the Democratic governor’s plan to raise it.
Chairman Dennis Milligan had called Gov. Mike Beebe’s proposal “an opportunistic tax,” and said “as Arkansans, we should not stand for it.”
Beebe’s proposal reflects a deal he struck with major natural gas producers to set a base rate of 5 percent of the price of gas, with some exemptions.
Sheffield Nelson, a GOP cochairman from 1990-1992 and a former gas-company executive, said Milligan’s stance “is bad for the party.
It “ makes us look like obstructionists and ‘aginners, ’” said Nelson, using a word for someone who is reflexively against anything. Nelson is promoting a proposed initiated act for the Nov. 4 ballot to set a 7 percent rate without exemptions.
Some GOP members objected to Milligan’s statement because some party leaders weren’t consulted before it was issued.
“They’re ignoring the fact that I was chairman of the party, and they didn’t even pay me the courtesy of letting me know they were taking this position,” Nelson said.
He said about 15 Republicans called him believing Milligan’s stance is “a mistake.”
But Milligan said that he was “not being an ‘ aginner’ at all” and that his opposition to the tax increase reflects a core belief of conservatives and Republicans.
“We want representation for our money, and we don’t want it to be... taxed just because of an opportunity to say, ‘There is an industry we can go after, ’” he said. “We want the biggest bang for our buck.”
About 25 Republicans called him to tell him to “stick by your guns,” Milligan said.
He and Nelson could both be at fault for not giving each other a heads-up about each other’s plans, Milligan said.
Nelson’s criticism of Miligan came a day after a Republican state senator, Dave Bisbee of Rogers, questioned whether Milligan was representing the party or himself when he came out against Beebe’s plan. Milligan said he was elected chairman to be the party’s spokesman.
House Republican leader Johnny Key of Mountain Home also criticized Beebe’s proposal in a news release issued by the state GOP on Wednesday.
Beebe’s plan, accepted by representatives of major naturalgas-production firms, is aimed in part at heading off Nelson’s proposal, which has less favor among the companies’ officials.
Beebe wants the new revenue from his plan to be used to improve roads. He has said he wants to enact the legislation in a special session if he can get enough legislators committed to support it, perhaps later this month. The increase, projected to raise $ 57 million in the first year, would start Jan. 1.
It takes at least a three-fourths favorable vote in each chamber of the Legislature to raise the severance tax rate. That’s 27 votes in the 35-member Senate, 75 in the 100-member House. The GOP has 25 members in the House, eight in the Senate.
Beebe said the GOP opposition has had little effect.
“I will tell you without releasing the names that a number of Republicans in the last 24 hours have said they are voting for it,” he said.
Sen. Sharon Trusty, a Republican from Russellville, announced Thursday that she’s backing Beebe’s proposal.
Sens. Kim Hendren, R-Gravette, and Ruth Whitaker, R-Cedarville, said Friday that they’re leaning toward voting for it after previously calling themselves undecided. Bisbee has said the same thing.
Sen. Gilbert Baker, R-Conway, another former state GOP chairman, said he’s undecided. He said he’s reviewing how the proposal affects Faulkner County roads where there has been drilling and the job growth created by the development of the Fayetteville Shale.
Rep. Bill Sample, R-Hot Springs, said Friday that he’s backing Beebe’s proposal, too, after seeing Beebe three times Thursday and Beebe’s chief of staff Thursday night. He is a member of the House tax committee.
“It looks to me like it is a pretty good deal for everyone,” he said.
As for the GOP’s opposition to the Beebe plan, Sample said, “I represent District 30.... I like to do things the party likes, but I know who elects me.”
Key earlier estimated that 15 to 20 House Republicans oppose Beebe’s proposal.
Beebe said it’s too early be talking about the House and Senate roll calls that he’s keeping on his proposed severance tax increase.
“Right now there are very few noes,” he said. “Now, there are a lot of ‘I am thinking about it’ and a lot of ‘I am leaning for it’ or ‘I am leaning against it.’ But there are very few noes and a lot of yeses.”
Beebe said he’ll know “a lot more” by the end of next week. But he said he doesn’t have “an artificial timetable” for when he’ll decide whether to call a special session.
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