Rule Change Could Make it Easier for Counties to Tax Property at Churches

Religious Freedom, ,

A proposed rule-change at the Arkansas Assessment Coordination Division could make it easier for county assessors to collect taxes on property that churches, charities, and other nonprofits own.

Currently, the Arkansas Constitution makes it clear that churches and charities are tax-exempt, and churches and charities generally don’t pay taxes on property they own unless they make some sort of profit from it.

The proposed rules would require churches and charities to file forms and paperwork with the county assessor that prove their property is exempt from taxation “beyond a reasonable doubt under Arkansas law.”

That’s a very high standard — and it gives county assessors tremendous leeway.

The forms also require churches and charities to give the county information that many people would consider private — like information about their staff’s salaries, bonuses, and other compensation. It isn’t clear why the county would need to know that kind of information.

If a county assessor decided to reject the nonprofit’s application for a tax exemption, the county could force the organization to pay taxes on anything it owns — land, buildings, vehicles, electronic equipment, machinery, and other property — as if it were a business.

The new rule could hurt many different nonprofits in Arkansas, including:

  • Churches
  • Charities like the Salvation Army or Union Rescue Mission
  • Christian summer camps
  • Private schools and private colleges and universities
  • Food ministries
  • Nonprofit hospitals and medical clinics
  • Homeless shelters

Charities and churches contribute millions of dollars to the economy each year by serving their communities. That’s part of the reason the Arkansas Legislature voted to designate religious organizations and charities as essential earlier this year. Making it easier for counties to tax property at churches and charities hurts everybody.

Please contact the Arkansas Department of Finance and Administration today, and ask them to opposed Rule 6.01 – 6.04, the Property Tax Exemption rule that affects nonprofits, charities, and churches.

Email your comments against the rules to kayleigh.gilliam@dfa.arkansas.gov. All comments are due by Monday, May 31.

You can read the proposed rules here. You can read some of the paperwork churches and charities would have to file here.

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Arkansas Legislature Refers Religious Freedom Amendment to Voters

Religious Freedom

On Tuesday the Arkansas Legislature passed S.J.R. 14.

This good measure by Sen. Jason Rapert (R – Conway) and Rep. Jimmy Gazaway (R – Paragould) refers the Arkansas Religious Freedom Amendment to voters for the November 2022 election.

If enacted, S.J.R. 14 would write good protections for religious liberty into the Arkansas Constitution.

It prevents the government from burdening a person’s free exercise of religion. The measure is similar to Arkansas’ state Religious Freedom Restoration Act. However, it writes protections for religious freedom into the Arkansas Constitution.

Read S.J.R. 14 Here.

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ACLU Opposes Arkansas Religious Freedom Amendment

Religious Freedom,

This week the ACLU issued a series of statements on Twitter opposing the Arkansas Religious Freedom Amendment, S.J.R. 14.

This good measure by Sen. Jason Rapert (R – Conway) and Rep. Jimmy Gazaway (R – Paragould) would amend the Arkansas Constitution.

If adopted, it would prevent the government from burdening a person’s free exercise of religion.

The measure is similar to Arkansas’ state Religious Freedom Restoration Act. You Can Read S.J.R. 14 Here.

According to the ACLU, S.J.R. 14 is “among the most extreme [religious freedom measures] in the country,” and it would “put Arkansas out of step with nearly all other states.”

But that simply is not the case.

Most states have enacted Religious Freedom Restoration Acts similar to S.J.R. 14 already.

Alabama has a religious freedom amendment very similar to S.J.R. 14 in its state constitution.

In fact the ACLU used to support state and federal Religious Freedom Restoration Acts like these in 1990s.

State and federal measures restoring religious freedom in America came about because courts had so badly eroded religious liberty in America. The laws simply help restore protections for the free exercise of religion.

S.J.R. 14 is no different in that regard. It’s just a good measure that will help ensure that our state constitution protects religious liberty in Arkansas. That’s something that all of us ought to be able to support.

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