Tax Committee Rejects Bill on Corporate Taxes

January 20, 2004 - Posted at 3:13 p.m. CDT

LITTLE ROCK, AR - A measure to allow the state to collect taxes on revenues earned in other states by Arkansas-based companies was rejected in a House committee today.

Legislators are trying to find a way to increase taxes to raise as much as $400 million for court-mandated improvements to state public schools.

Legislators have been reluctant to consider tax bills until they decide whether or not to consolidate schools.

On Saturday, the House passed a $385 million school funding formula.  The plan was previously endorsed by the Senate, but legislators haven't agreed on a way to pay for the increase.

(Copyright 2004 by The Associated Press.  All Rights Reserved.)