Nevada County Picayune and Gurdon Times Newspaper Archive

League Supports State Dropping Tax

Municipal leaders throughout Arkansas favor doing away with the state's income tax.

A resolution to this effect was passed at the recent Arkansas Municipal League (AML) meeting in Little Rock.

What the city leaders prefer would be to get rid of all exemptions on sales tax and eliminate the income tax altogether.

The AML favors deleting exemptions on sales tax will generate $800 million in revenue, more than making up for the funds lost from getting rid of the state income tax.

This measure, along with several others will be presented to the General Assembly when it convenes in February, 1997.

At this time, Governor-to-be Mike Huckabee, who will take over the reigns of state government from Gov. Jim Guy Tucker on July 15, prefers keeping the income tax and eliminating sales tax on food items.

Municipal leaders across the state agreed this would be detrimental to their communities. In many small towns, most of the taxes received come from the tax on food.

Other resolutions passed by the Municipal League include:

• Tax increment financing to help raise money for distressed neighborhoods;
• Increased financial support for the Arkansas Law Enforcement Training Academy and for additional locations for the academy;
• Urging all school districts to provide some form of alternative learning system (ALS) to help combat absenteeism;
• Collection of fees for municipal bail bonds. This measure would allow police departments to collect a fee for the department when taking bail bonds because of the paperwork involved.
• Affordable housing in association with AML policies, and encouraging funding and technical aid from state and federal agencies to help deter problems locally;
• Opposing the liberalization of the Arkansas Constitution and its amendment process. There is currently a move afoot to allow up to five measures to be placed on the general election ballot at one time, instead of the current three.
• Collection of sales tax from mail order vendors. By getting tax revenue from mail order vendors, the state would receive an estimated $20 million annually.
• Supporting the repeal of obsolete, conflicting, antiquated and unconstitutional laws currently on the statute books in Arkansas. This would include such laws as it being illegal to drive cattle down Central Ave. in Hot Springs blindfolded, and motorists in Arkansas driving after sundown being required to have someone run in front of them with a lamp.
• Court reform. The AML will be asking the General Assembly to refrain from creating duplicative municipal county courts. AML officials say a municipal county court would be the same as city's municipal courts and would take money from cities.
• Amending existing insurance codes to allow solvent Arkansas corporations to issue licenses and permit bonds for construction purposes;
• Electronic fund transfers. The AML would like to see the Arkansas code changed to allow cities to use direct deposits for those employees who choose to use them for their payroll checks, and electronic transfer of funds to pay bills with.
• Supporting Act 309 which allows non-violent criminal offenders to return to the community to work;
• Urging the improvement of collection and reporting services by the Arkansas Department of Finance Administration, making the ADFA more accountable and responsive.
• Supporting the appropriation of matching state funds for the Arkansas Department of Pollution Control and Ecology.
• In Arkansas, there are improvements needed in waste water systems which total more than $1 billion.
• Support amending Arkansas law to allow cities using parking meters to waive payment on these meter for those with handicap stickers.

However, the city was informed this can't currently be done because state law prevents it.