Arkansas News Bureau

LITTLE ROCK — Attorney General Dustin McDaniel on Wednesday rejected a proposed constitutional amendment that would repeal the state income tax and enact a flat rate state consumption tax.

McDaniel said in the opinion that the proposal, by the Fort Smith-based Arkansas Progressive Group, contained numerous ambiguities.

Under the proposal, all state taxes would be repealed and the Legislature would be required to set a flat rate state consumption tax before July 1, 2012.

Business purchases of consumable goods or services would be exempt from the tax.