Beebe, Natural Gas Firms Reach Agreement on Tax - KAIT Jonesboro, AR - Region 8 News, weather, sports

Little Rock, AR

Beebe, Natural Gas Firms Reach Agreement on Tax

LITTLE ROCK, AR - A spokesman for Governor Mike Beebe says the governor has reached a tentative agreement with natural gas firms for an increase to the state's severance tax, which could be considered at a special legislative session.

Spokesman Matt DeCample says that Beebe will only call a special session if he's got the votes necessary to pass a severance tax hike.  The governor would like to hold a special session by the end of the month.

DeCample says the governor will discuss the details of his tax hike proposal at a news conference this morning.

The current tax rate, which brings in about $660,000 annually to the state, has not been changed since 1957 and is one of the lowest in the nation.

(Copyright 2008 by The Associated Press.  All Rights Reserved.)

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