New fuel taxes set to go into effect for Arkansas highways

LITTLE ROCK, Ark. (AP) — Arkansas motorists will pay more to put fuel in their vehicles when new sales taxes go into effect to help maintain roads and highways.

Legislation signed into law by Republican Gov. Asa Hutchinson in March will raise $95 million for highway funding and raises fuel taxes in the state for the first time in 20 years.

The increase goes into effect on Tuesday. The gas tax will rise by 3 cents to 24.5 cents a gallon and the tax on diesel fuel will increase 6 cents to 28.5 cents per gallon.

The new law also taps into at least $35 million in expected revenue from casinos voters approved last year, and imposes an additional registration fee on electric and hybrid vehicles. The fee for electric vehicles will increase by $200.