This week the Tax Reform and Relief Legislative Task Force met in Little Rock to discuss sales tax policies in Arkansas. The task force is reviewing possible changes to the state’s tax structure — including changes to tax exemptions in Arkansas.
In December consultants for the state singled-out sales tax exemptions for nonprofit hospitals, nursing homes, and churches, saying these exemptions cost the state millions of dollars in revenue and ought to be reworked.
At its meetings this week, the task force reportedly indicated it will examine possible changes to these and other sales tax exemptions.
Charities and churches contribute at least $378 billion to the U.S. economy each year — and possibly much more than that, according to some estimates.
Many charities operate on budgets that are so tight they likely would have to shut their doors if they were taxed at the same rate as for-profit corporations. Our state needs to think twice before increasing the tax burden churches and charities carry.
