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Arkansas governor signs manufacturers' tax cut

The governor signed identical House and Senate bills Monday that would reduce the tax from 3.875 percent to 3.125 percent. The bills are sponsored by Rep. David Dunn, D-Forrest City, and Sen. Barbara Horn, D-Ashdown.

LITTLE ROCK, Ark. (AP) — Gov. Mike Beebe has signed into law a nearly $10 million break on the tax that manufacturers pay on their utility bills.

The governor signed identical House and Senate bills Monday that would reduce the tax from 3.875 percent to 3.125 percent. The bills are sponsored by Rep. David Dunn, D-Forrest City, and Sen. Barbara Horn, D-Ashdown.

Beebe says he has no qualms signing the tax cut, despite a gloomy revenue forecast released last week by state officials. The governor says the amount of the tax cut isn't significant enough to be affected by the forecast.