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Area GOP candidates say Beebe's proposal OK |
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Monday, 31 March 2008 |
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By Jillian Duke Courier staf Some Saline County Republican candidates seeking state office are in favor of the governor’s tax severance plan that the Legislature will consider in special session beginning Monday.
Bud Lidzy of Bryant and Ann Clemmer of the Salem community are seeking the Republican nomination for the District 29 House of Representatives seat being vacated by Rep. Janet Johnson, D-Bryant. Both say Gov. Mike Beebe’s proposal is a good compromise.
Beebe has called for the Legislature to convene in special session to consider raising the severance tax. Only 5 percent of the state’s wells are classified as wells that would pay the full tax rate that has been proposed by the governor as a way to fund additional highway improvements.
“If that’s the best we can do, I can live with it,” Lidzy said. “I’m in favor of a severance tax, and it will be easier on the companies the way that he brokered the deal.”
Calling for special session is “important,” he said. “It’s fresh on people’s minds, and it will be good to get it resolved.”
Clemmer said, “To get anything done, it’s going to take a three-fourths vote, which means that whatever comes out has to be a compromise. It appears that what the governor is proposing is pretty good. It’s a step in the right direction without hitting the natural gas industry too hard.”
Clemmer said she understands concerns of the out-of-state companies that are drilling here. “They want to recoup their investments,” she said, noting she thinks it’s a good investment and that the tax won’t penalize them too harshly.
Brett Hooton of Bryant, a Republican candidate also seeking the District 29 post, disagrees with Beebe’s proposal.
“I’m not in favor of a severance tax, and I’ve never been in favor of a tax just because it’s too low,” he said. “I think it hurts the royalty owners ... they’re already paying local taxes and property taxes.”
He added that he doesn’t think the plan will generate a “meaningful enough revenue source.”
Beebe’s severance tax proposal is expected to raise $57 million next year, and as much as $100 million within three years.
Hooton noted that the natural gas industry “has been the largest industry in our history. We should encourage business growth and not decide to tax it when we see it’s doing well.”
On the special session, Hooton said, “I wish we’d have a special session where there would be more interaction with the Legislature, that we could find common ground, where it would reduce some other taxes to benefit Arkansans.”
State GOP chairman Dennis Milligan of Bryant shares Hooton’s sentiments.
“I’m an opponent of the severance tax issue for a number of reasons,” he said, noting that he had joined with House Minority Leader Johnny Key “in forming opposition to a plan that I think is bad. It sets a precedent for companies that would look at locating to Arkansas. Our tax structure is way too high as it is.”
Milligan said he disagrees with Sheffield Nelson’s contention that the plan doesn’t affect Arkansans. “I think that’s totally wrong. It does affect somebody — royalty owners, companies and, ultimately, the consumer.”
Nelson is a past Republican candidate for Arkansas governor and former natural gas utility executive.
He may be disappointed, but Milligan believes the tax fight will continue.
“This is just one battle of many and we’re preparing for the next issue that will be coming up. I don’t think it’s the last time Mr. Beebe will be bringing tax-increase recommendations to the table.
“We may have lost this battle, but not the war. We’ll try to be a part of protecting Arkansans from a tax-and-spend administration.”
David McCoy of Benton, the Republican candidate for Cornwell’s District 28 House seat, falls somewhere in the middle in comparison to the other Saline County Republicans.
“Generally, I’m going to be against any tax increase, but we have to be practical, and in this matter, regarding the severance tax, the special session is a good idea because it is a newly added tax increase,” McCoy said. “It is a matter of debate and needs to be debated. For example, we need to consider whether it’s going for education and roads, and I think that raises a question of whether some other taxes can be alleviated.
“Can this replace some other tax? Is it really a need or is it just a way to raise more money?” McCoy asked. “I’m not opposed to the special session, but I’m generally skeptical of any sort of tax increase.”
Like her Democrat counterparts, Barbara Nix of Benton, a candidate for Cornwell’s District 28 House seat, is in favor of Beebe’s proposal.
“I am definitely in favor of a severance tax increase, and I think it’s long overdue,” she said.
In regard to the special session, she said, “I do think it’s important and that it needs to be done as soon as possible. It’s a great source of revenue, and I’m glad to see that it will be used for the highways.”
Seeking the Democratic nomination for the District 29 seat is Mike Beckwith, who lives in the county near Benton. He also favors the proposal.
“I am in favor of the special session to go ahead and resolve the severance tax issue, and also approve the funds raised by this to go towards road repairs and general revenue,” he said.
www.bentoncourier.com
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