Senator Says Task Force Not Interested in Taxing Churches

Legislature, ,

Yesterday we wrote about a proposal at the Arkansas Legislature to tax passive income of churches. The proposal was among those up for consideration at the legislature’s Tax Reform and Relief Legislative Task Force.

Under Arkansas law, income churches receive from things like interest earned on savings accounts or from the sale or rental of church property is not subject to the state income tax. The proposal before the task force would eliminate this exemption.

Sen. Jim Hendren (R — Gravette) is the senate chairman of the task force. I spoke with Sen. Hendren this morning, and he has assured me the task force has no interest in eliminating churches’ passive income tax exemption.

I am deeply grateful to everyone who contacted their state legislators yesterday to express their concern about this proposal, and I hope our elected officials will continue working to ensure taxes are not increased on churches and charities.

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Satanic Temple Plans to Sue Arkansas

Current Events, ,

The Associated Press reports the Satanic Temple plans to join the ACLU in a lawsuit against the State of Arkansas over the new monument of the Ten Commandments on the Capitol lawn.

Arkansas unveiled the privately-funded Ten Commandments monument at a brief dedication ceremony yesterday.

The monument is identical to one the U.S. Supreme Court ruled constitutional in Texas in 2005.

You may recall the Satanic Temple threatened to put a satanic monument on the Capitol grounds a few years ago if Arkansas placed a Ten Commandments monument on the property; however, that effort never went anywhere in part because monuments require legislative approval. Arkansas is not obligated to put a statue of Satan alongside its monument of the Ten Commandments.

It’s worth mentioning that the monument installed yesterday actually is a replacement of one that was destroyed last year. You may recall a man plowed a car into the initial Ten Commandments monument less than 24 hours after it was placed on the Capitol lawn.

The ACLU and others who oppose the Ten Commandments monument were swift to issue public statements denouncing the destruction of that monument with a car, but they seem more than eager to try to destroy it with a lawsuit.

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Task Force Plans to Review Grocery Tax Increase

Legislature,

Yesterday we wrote that the legislature’s Tax Reform and Relief Task Force met to discuss proposals to raise the state sales tax on groceries; eliminate the annual sales tax holiday for back-to-school supplies; levy a sales tax on nonprofit hospitals and nursing homes; and cut taxes on new and used cars.

Bad News From the Task Force Meeting

The Arkansas Democrat-Gazette reports the task force voted to further review plans to increase the state grocery tax.

Under the proposal, the legislature would increase the state sales tax on groceries from 1.5% to 6.5% and create an earned income tax credit that would help offset the effect the grocery tax would have low- and moderate-income families.

The task force cannot raise the grocery tax itself, but it can develop a plan to raise the tax and make recommendations to the legislature in 2019.

The task force also agreed to further study a proposal that would eliminate the back-to-school sales tax holiday. That’s bad news.

Good News From the Task Force Meeting

Lawmakers opted to continue reviewing plans to exempt vehicles sold for less than $10,000 from the state sale tax, and decided not to move forward with a proposal to tax sales to nonprofit and charitable hospitals and nursing homes. That’s good news.

The Bottom Line

I’m glad legislators might cut taxes on new and used cars, but it’s troubling that some elected officials want to raise taxes on basic necessities like groceries.

Lawmakers have indicated their goal is to reduce income taxes for top earners as well as low-income families. To do this, some say they need to overhaul — and increase — Arkansas’ sales taxes.

If Arkansas raises taxes on groceries while giving income tax breaks to the poor and the wealthy, that’s going to hurt middle class families who don’t qualify for any tax credits. No one should be penalized for buying bread and milk.

Likewise, eliminating the back-to-school sales tax holiday affects parents with young children. The tax holiday doesn’t exist to help businesses. It’s meant to help families. The tax holiday makes it easier to purchase basic supplies for educating students.

Legislators need to think very carefully before taking up proposals to eliminate the tax breaks or raise taxes on everyday families.

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