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Panel approves creation of Arkansas River Navigation System Fund to direct excess barge‐related revenues to ports
Summary
Senate Bill 453 would set up a dedicated Arkansas River Navigation System Fund, direct taxes and penalties from river traffic above a threshold into grants for port and waterway improvements, and reserve $50,000 for commission operations; DFA staff said the collections are certified annually and would likely cover the $50,000 in recent years.
The Senate Revenue & Tax Committee approved legislation to create a dedicated Arkansas River Navigation System Fund that would use taxes, penalties and other receipts tied to river traffic to provide grants for ports and waterway improvements.
Senator Eads, the bill sponsor, said SB 453 consolidates prior proposals into one bill allowing the Arkansas River Navigation Commission to implement the fund and use excess revenues to award grants and support commission operations. "We put it all into one so it'll be a lot more efficient this way," Eads said.
Committee members asked whether the revenue source is an ad valorem tax and whether the state can collect such revenues. Todd Cockrell and Paul Gering of the Department of Finance and Administration explained that the Arkansas Public Service Commission values barge lines and waterways and provides a certified list; DFA handles billing and collection. DFA staff told the committee that, in their view, the collection does not run afoul of the ad valorem prohibition raised in questions and that annual certification shows amounts above the statutory threshold are modest but existent. DFA noted that in fiscal year 2018 roughly $940,000 above the $2.5 million threshold was certified to the Arkansas Waterways Commission and that a $50,000 set‑aside would likely come from those excess collections.
A do‑pass motion was offered and the committee approved SB 453 by voice vote. DFA agreed to provide a revenue impact or “green sheet” if the bill advances for floor consideration.
What happens next: The bill moves to the Senate floor; DFA will prepare an impact outline if requested.
