House Revenue & Taxation Committee Part 2
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Bills discussed (1)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
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HB2064
· 2 mentions in chapter, transcript
Matched: “HB2064”
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Pre-2017 bill |
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- October 5, 2026
Thank you, Mr. Chair. House Bill 2064 is a gradual reduction of sales tax on LP gas, natural gas and electricity. It's for cooling units of the irrigation, things of that nature, equipment used for pump, aeration ponds, storage tanks, on grain drying, poultry houses for livestock, chickens, boilers, turkeys, laying hens, commercial milking facilities.
Beginning in July of 01, it would be reduced down to 4%. In July the 1st of 12, it would be reduced down to 2.62. As you all know, energy prices have risen dramatically. Arkansas farmers are feeling the pinch on the rising cost of energy. LP gas, natural gas, electricity usage have hit the rising cost. Since sales tax base is on volume, more money is pouring into the state coffins.
More than any other because of the farm utility tax. This tax alone costs farmers thousands of dollars a year. Let me say that again. The tax costs them not the energy itself, but the tax. You can turn off the power to a poultry house and stop pumping water on a field of beans and stop milking the cows. Farming isn't like any other business. When you just go to these costs, consumers, you simply cut hours, not energy prices. Farmers are price takers and responsible for their own input costs.
Farmers will continue to use energy. Consumption is necessary for the part of their operation. Tax relief is part of the put dollars back into rural communities where the farmers and ranchers conduct business. This bill will benefit farmers across the entire state, row crop farmers, poultry, fish farmers, dairy farmers, horse culture, Agriculture is Arkansas's largest industry. It is the backbone for our economy. It deserves the consideration of this General Assembly.
We're cutting taxes on manufacturers, grossing every season. I've been here but we haven't budgeted even a single percentage port on ag utilities where farmers are suffering under this burden. I'm not saying these cuts aren't worthy. It's just that we want us to consider a tax cut that would keep some of our farmers in business. give them a few more dollars to put in their farm, spend it at their local
Speaker 7
2:59
stores, and put it in the offering plate. I'd be glad to take any questions.
Representative Nate Bell
Unverified
3:05
Representative Bell, you're recognized for a question. Thank you, Mr. Chair. I'm sure, well, first of all, Representative Callaghan, I'd like to thank you for the good bill. I'm a poultry farmer myself, and I know Representative King also is involved in the business and understands the concerns that many of us have out there. Over the last seven years, I've seen my costs go up over 40 percent and my income go up about 6 percent, and the biggest component of that is our utilities.
I'm now spending over $40,000 a year in utilities, and I certainly appreciate what you're doing here. And I know many of the farmers in my district feel the same way. Do have some questions just regarding revenue impact and what the effects would be and where you guys feel like you can come up with the money to cover this. Well, as you see, we should have the impact.
Now, in 2012, it would be $3.3 million is what the revenue would be on it, loss. And as far as coming up with the revenue, I don't know. We've not, of all the tax bills we've done, I've not heard one of them tell us where we're going to get the revenue for it. So what's been the difference? I mean, that was our deal to start off with. We was going to show where we got the revenue and all, but ain't nobody really showed where we got the revenue.
Representative Nate Bell
Unverified
4:39
Well, I certainly support the bill. I know we're dealing with a situation where, in many of the cases of the other tax cuts that we've dealt with, we have looked at potentially just reducing the growth in spending. Is that something that you would propose on this as well? I'm going to let Mr. King talk to me. Can I answer the question? Mr. King, you're recognized. I know
Representative Bryan B. King
Unverified
5:06
the debate that has happened and the deal that has been made, and I understand that.
But, you know, I mean, this session is not over with. I mean, there are still things out there and decisions that can be made that needs to be put in front of members that can find out where the revenue is. Now, obviously, you're going to have to make cuts, and I'm certainly willing to point out some things that can be cut, and we can return this money to the farmers and agriculture part that has been left out of this whole debate. I mean, we as Farm Bureau, Representative Cowling and I are third-termers.
We've worked very hard on this. Representative Cowling, to his credit, passed it out of the House last time. There are over, what, 11 or 12 co-sponsors on this committee alone for this, and it was left out of the debate. And you know what? This session is not over with yet. I know some deals have been made between some people, but, I mean, I say the session's not over with. We're here to do business for people. And you know what? But there's ways that we can make cuts and tough decisions that can be made that can help pay for this. I can assure you.
I sit on the personnel committee. We can look at a lot of these state agencies where you've seen growth in salaries and benefits over the last four years alone has been 20 and 30 percent in some agencies. At the same time in the last four years, Arkansas's median household income has went down. So there's ways to make cuts, and that debate needs to happen and be put in front of people and then make a decision whether you want to make some cuts or whether you want to allow farmers to have some tax relief, which they much deserve.
Representative Nate Bell
Unverified
6:44
First of all, I definitely agree with you. I think reducing spending is the answer to finding the funds to do this. And my bottom line on my farm, again, this would put nearly $3,000 a year back in my local community in my spending. And I'd certainly ask everyone to support the bill. Representative Burris,
Representative John Burris
Unverified
7:05
you're recognized for a question. Thank you, Mr.
Chairman. Representative Cowling, thank you. You're a great advocate for your cause.
Since certainly some of the language has been alluded to about, you know, deals or different things like that, I guess the question is more so as the session has wound down and we're at the end, probably almost just a week away from the end, And I think the general sentiment from both respective chambers has been that at this point, the tax cuts that should be advanced, you know, are the ones that have been agreed upon. And so I guess the question is, I think in some ways it's easy to look down the table
at the people on this committee and say, are you for my tax cut? But unfortunately, Davey Carter can't sign something to make that happen. I can't sign something to make that happen. It takes passage on the House floor. It takes passage in a Senate committee. It takes passage on a Senate floor. When it takes the governor's signature, how far along are you, Representative King, in the process of getting the support that's needed to pass this and actually make it law? Well, look at the co-sponsor sheet on this, and I think you're
Representative Bryan B. King
Unverified
8:12
a co-sponsor. There's 12 votes on the committee. As I said, I wish I could make it happen.
Representative John Burris
Unverified
8:18
My question was, what about the Senate? What about the governor? Where do they stand on
Representative Bryan B. King
Unverified
8:25
this? You know, they're for the deal that was made, I'm sure, I'm sure there's other people that testify to that, but as I tried to explain to you that sometimes with bills, you know, do they have a chance to pass the Senate? Well, they have zero
Representative John Burris
Unverified
8:41
I think it is possible to line up support before. And so I guess what I'm asking is, you know, how much around the next, how far along the
road are you, Representative Cowley, of getting that support regarding the Senate Revenue Tax Committee passage on the floor and signature of the governor? Well, that's real hard to say, you
know. I mean, you know, our first hurdle is getting out of this committee, and then it would be getting it across the House floor. And as lots of people in this committee and all are on this, I mean, it's one of those deals that, hey, we've got to do our job. We've got to represent our people. And so these fellows feel like, and myself and as Brian and everything,
Speaker 7
9:24
that's what we're doing is we're trying to represent our people. And we're just trying to save jobs. That's
Speaker 25
9:30
all we're trying to do. I agree with you. I'm obviously from Boone County, which
Representative John Burris
Unverified
9:35
is a heavy poultry and cattle. Lots of people that rely on this industry and farming for a living, so I certainly am sympathetic to it. Again, I would just say, for taking the broader perspective of how do we actually make laws, how we actually help those people, it's to ensure passage. At this point, I think, from my perspective, passing a bill out of the House in no way ensures passage.
It requires much more than that. And so that is, I don't know the point of going through step one when steps two, three, four, and five are undetermined. And that's the root of my disagreement would not be with the bill. It would be with where we are in the process. Well, as we
were, when we started this deal, we held up lots of bills. And we let bills get out. You know, where would we be if this bill had been up the front and we'd put out and start off with? But everybody's got bills that they didn't have a chance to run, and they didn't get in the deal.
So, you know, when the deal-making is going on, everybody's bill is
Speaker 19
10:38
left on the table. So, you know, we just feel like we need to get it
off, get it out. Thank you. Thank you.
Representative Charlie Collins
Unverified
10:47
Representative Colling, Rick, can I ask for a question? Yes, Representative King and Representative Colling. You know, when the governor has
been asked about the tax cuts that he's going to sign, People have asked him, Governor, why are you going to do that when you made it crystal clear month in and month out that there really was no responsible way to do it?
And the governor's answer includes an expression which is something like, well, there are some folks down there that want another $100 million in tax cuts. And so my question is, who in this room do you think is included in the some folks down there want another $100 million in tax cuts? Anybody sitting at this table? I believe every one
of you sitting at this table won't tax cuts. I don't know of one in this room that won't tax cuts.
Speaker 37
11:43
Thank you very much. I appreciate the answer. My second question is, Representative King, since I
Representative Charlie Collins
Unverified
11:50
walked in the doors of this joint on January 10th, Haven't I worn you out and every other person in our caucus about the importance of working on the income tax? About the egregious oppression that our exorbitant income tax rates put on the poor, poor folks of this state. And about how I personally believe the number one reason we're 49th in so many categories,
starting with median income, is because the people of this state who make as little as $32,600 have to pay 7% of their income in income taxes. And I filed that bill. And I fought like the Dickens for it. But guess what? I didn't get my way. Now, at the same time, I love this bill. I love it. And I'll do everything I can to help make it come to life at the proper time. Senator Gilbert Baker sat at that end of the table during some of the discussion period
and said, we need to do this now, it has to be now, it has to be now, it has to be now. But if you try and do everything now, sometimes you wind up with nothing. That's my personal opinion. So I want to do everything I possibly can to help bring this to life at the proper time. My fear is if after we've got people to agree to put $20 million extra into tax cuts this year, that if I don't stand behind what I've agreed to do,
that I'm going to lose my credibility and I'm going to lose my ability to get that $100 million of tax cuts or $500 million or all the other things I hope to do in the future. So I love this cut. I love it. It's a matter of when, not if, in my
Representative Bryan B. King
Unverified
13:35
view. Thank you. Well, let me ask you a question. I mean, you're in your first term, and I certainly support you in what you want to do. Representative Kaling and I are in our third term. And you know what? But as Representative Cowling said, we're going to fight for our people and what we think is right. And I continue to say, and I supported Representative Garner's capital gains tax, supported all these things,
but the question has always been how do you pay for it. You know what? I think there's a decision that could be made, and I've worked on the personnel committee and the growth of state government jobs. If you look at each agency, as I pointed out, and I have done tireless work to try and compel data to be able to put in front of people that there may be tough decisions that you may have to make. And you know what? I think there is ways that we can pay for this tax cut or return this money back to the people that pay the taxes. And I'm going to tell you, I think the debate shouldn't be over.
And you know what? My term is fixing to end. Representative Cowley is fixing to turn to end. And if some people get mad, I don't know what else to tell you, but I work for the people of Carroll County, and I can assure you that I'll throw some things down in front of you that can show, if you want to, if you want to really make the cuts and make the tough decisions, that we can find out ways to cut back in some areas that have statistically grown too much over the last four years and actually helped the people that are paying taxes. I'm all for throwing that in front of you,
but what I'm saying is the debate shouldn't be over. I appreciate your point of view.
Our time is not over with Representative
Collins. I appreciate your point of view, and I respect it. Representative Viviano, we recognize for a question. Thank you, Mr. Chairman. First of all, Representative King, I applaud your comments, and I agree with him. I think there's areas to cut, and we certainly have to take our jobs seriously and look at a larger reform. For Representative Cowling, earlier you talked about being able to get this passed,
and Representative Burris discussed that. Do you feel confident that if we pass this, that your colleagues and the majority party in the House would see fit to pass this? We won't know until
we get it there, but the last year when I ran this thing out and all I ran out was about 89% of the vote of the thing. So it's an economic deal.
I mean, it's something that everyone in your county has got it. It's just like Reverend Bell said and all that. You know, it's an economic deal to save jobs. So who knows? I couldn't answer that question. You take that chance any time you run a bill. Right now I think the deal was cut
Representative Bryan B. King
Unverified
16:24
too early and not enough people included in on the debate. I mean, I know the players involved, and I visited with all of them. But like I said, you know, the debate was cut too early.
Revenue stabilization has not went into effect. And, you know, there's going to be some tough decisions to be made. And Mr. Wise talked about not putting a COLA out there. Well, I was talking about that a long time before that ever came up. I've talked about that in meetings, you know, one the other day about not doing a COLA, about making maybe some of the agencies absorb the 27-pay period. I started to contend that. And you know what? Some other people in the other rooms told me, no way. And then finally, another person the other day in a meeting brought that up as the first thing,
and I thought, well, we're on the same page. You know, the tax cut deal was made too early, and the debate shouldn't be over until this session's over. And I can assure you I will put something in front of your desk that will help pay for some more tax cuts if you want to make that decision. And let me say something. Representative Cowling and I are Republican and Democrat, but he's a business guy. He stays in business. We know how to make things happen in the real world, and I don't do anything different in my government job to be able to say,
hey, you know, this is a tax cut. I'll show you where we can make cuts. They're going to
Representative John Burris
Unverified
17:45
be tough, but we can do it. All right, is there anybody from the audience that would like to speak for the bill, against the bill? Mr. Leathers, Mr. Tice, you recognize,
Speaker 49
18:00
speak against the bill. Mr. Tice, you recognize. Mr. Chair, committee members, John Tice with DFA, and as we've done with all other bills that have an effect on general revenue, we want to be consistent speaking against
those bills. You have the revenue impact in front of you. It's $3.3 million the first fiscal year, fiscal year 12, and grows to $6.4 million in fiscal year 13 and stays at that point thereafter. The Governor has presented his balanced budget and has said that there's There's no additional room, and this bill, as you've discussed this afternoon, would require significant cuts in services or the programs funded by government.
Representative John Burris
Unverified
18:41
Be glad to answer any questions. All right. Thank you. Mr. Tyson has spoken against the bill. May I speak before the bill? Members of
accounting, would you like to close for your bill? I appreciate the committee listening to us and
Representative John Burris
Unverified
18:57
all, and I'll close with that. All right. All right, the motion from the committee is do pass.
All in favor say aye. Aye. All opposed say no. No. Noes have it. Sorry the bill fails.
Anybody else here wants to run a bill? Okay, if not, we shall stand adjourned.
Agenda
HB2064
Adjournment
Documents
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Speakers
Representative Mark Biviano Chair
Unverified
Speaker 7
Representative Nate Bell
Unverified
Representative Bryan B. King
Unverified
Representative John Burris
Unverified
Speaker 24
Speaker 25
Speaker 19
Representative Davy Carter Chair
Unverified
Representative Charlie Collins
Unverified
Speaker 37
Speaker 49