After pushback from Gov. Sarah Huckabee Sanders’ office, state lawmakers on the final day of session passed a heavily amended bill that originally would have overhauled Arkansas’ failing tire recycling program. Senate Bill 508 gives state tax officials the authority to close businesses that are delinquent on paying the fees they collect for removing used tires, but most of the provisions in the initial bill were removed this week.
The original bill would have made sweeping changes to how the state funds its tire recycling program: proposing collecting the $3 tire fee on the purchase of new tires — including on new vehicles — and charging more for large tires. Sanders’ administration balked at the proposal over the fee increases, which the Department of Finance and Administration estimates would’ve raised an additional $2.3 million to $5 million annually. While tax officials estimate businesses owe as much as $4 million in delinquent fees, the amended bill isn’t expected to fix the program’s shortcomings.
Sponsor Sen. John Payton, R-Wilburn, brought the legislation because the program failed last year after fee collections lagged the costs needed to run the program. Payton said on the Senate floor Friday that he was displeased that the bill had been “gutted” in the House, but he said he was glad a provision remains that consolidates the 11 used tire districts into four that will be governed by boards of county judges and mayors.