Governor Beebe Vetoes Tax Exemption For Drilling Sand

Mar 17, 2014

Credit Michael Hibblen / KUAR News

Gov. Mike Beebe has issued a line-item veto on a provision in a budget bill that exempts sales tax collection on the sand used in the drilling of oil and natural gas.

The governor made the line-item veto Monday in the budget bill for the Department of Finance and Administration's revenue services division.

In a letter to lawmakers, Beebe said the Legislature made a substantive change to state law without following the constitutional steps to do so during a fiscal session.

Lawmakers have said they were clarifying state law to follow a Pulaski County circuit judge's ruling that sand qualifies as equipment, meaning taxes can't be collected on it.

Lawmakers can attempt a veto override when they return to formally adjourn the session Wednesday.