Tax Bill Becomes Law Without Governor`s Signature
By: Import User
Updated: January 7, 2009
New legislation that raises taxes to pay for
a court-ordered education overhaul became state law today.
The tax bill became law without Governor Huckabee`s signature.
He signed a bill that establishes public schools as the state`s top
budget priority.
The tax bill raises the state sales tax seven-eighths of a cent,
making the sales tax six percent. It also expands the sales tax to
some business services that were not previously taxed. The increase
goes into effect March first.
The second bill establishes the Education Adequacy Fund, into
which about 370 (m) million dollars in new taxes will flow to
supplement the state`s Public School Fund. It also makes public
schools the budget priority, a requirement ordered by the state
Supreme Court in declaring the state`s school funding formula
unconstitutionally inequitable and inadequate in November 2002.
Posted by Mike Hellgren
