Baxter County Friends of the Taxpayers

Baxter Bulletin News Update -- 5:00 pm, Saturday, July 28, 2007

School officials unable to sway watchdog group
by John Anderson

Mountain Home School District officials talked with residents about the merits of a $39.8 million construction plan at a Saturday meeting of the Baxter County Friends of the Taxpayers.

After more than two hours of discussion, Friends of the Taxpayers members voted to oppose the plan, Director Frank Kaye said.

The plan depends on voter approval Sept. 18 of a property tax increase to finance the construction over the next 30 years.

A presentation from Superintendent Dr. Charles Scriber lasted about one hour. It was followed by questions and comments from those in attendance. The superintendent and other school officials fielded questions about athletics, building maintenance and other topics.

About 75 people, including Friends of the Taxpayers members, school officials and community residents, filled out a room at Redeemer Lutheran Church for the meeting.

Kaye, who also serves on the Mountain Home City Council, ended the discussion so group members could determine a position.

Between the choices of supporting the plan, staying neutral or actively opposing the plan, members unanimously chose opposition, Kaye said.

Read the complete story in upcoming Bulletin print and online editions.

http://www.baxterbulletin.com/apps/pbcs.dll/article?AID=/20070728/UPDATES01/70728002

(letter appears online in August 2 edition,
but was edited rather severely)

July 28, 2006  

Dear Lovely County Citizen:

Word arrived in Mountain Home the other day that the voters of Eureka Springs are considering trying to rescind the town’s Advertising & Promotion tax.  On behalf of the Baxter County Friends of the Taxpayers, and other like-minded citizens, we say, “Hurray!”!      

Our City Council unanimously approved the ordinance calling for an A&P Tax in January 2005, after blatantly ignoring the protests of many concerned citizens.  The mayor issued a public challenge to those of us who attended that council meeting to do something about it if we didn't like it … so we did!  Within three weeks a team of 30+ volunteers (ranging in age from 45-90) gathered 2131 signatures on a petition for referendum, and forced a special election.  In April 2005, the tax was defeated soundly 2,323 to 312.  (See the BCFT website for the whole story:  http://bcfriendsofthetaxpayers.org/aptax.html)

Admittedly, your situation is a little different, since you’ve had an A&P Tax in effect for nearly 30 years.  But with luck, and the support of your friends and neighbors, the issue will soon be placed on the November ballot – where it belongs.   

BCFT believes the A&P Tax MUST be taken to the voters, every time.  It is the only sales tax in this state that does not have to be voted on by The People.  Unbelievably, Arkansas law gives municipalities the power to levy this tax simply by voting it into existence!  

To this end, we are working with our State Senator and State Representative to change the wording in the Constitution (A.C.A. 26-75-601 [city level] and A.C.A. 26-74-501 [county level]) to REQUIRE any city that wishes to pass an A&P Tax to allow its citizens the chance to vote on it, preferably at the next general election, before it can become law.  This way – either for or against – every registered voter's opinion will count … not just those of the City Council.            

For more info (or moral support), you may contact BCFT through the website or at (870) 424-6235.  Good luck -- we're behind you all the way!  

Sincerely,  

Frank Kaye, Director
Suzan Kaye, Secretary
Baxter County Friends of the Taxpayers
Mountain Home, AR

PS – Mountain Home did NOT dry up and blow away without the A&P Tax, as its proponents insisted it would.  On the contrary:  We are experiencing a boom the likes of which the natives around here have never seen … dozens of new bank branch offices, a Home Depot, Lowe’s, Goody’s, Popeye's Chicken, Arby’s, Papa John’s, strip malls – and more – all within the past 2 years, without the A&P Tax.  Traffic is ghastly, crime rates are up, so are the prices of everything from milk and cookies to new homes … we hate to think how much worse it would be if we still had the A&P Tax!

From The Lovely County Citizen (Eureka Springs, AR):

Petition circulating for CAPC abolishment vote

Article by Bill King / June 1, 2006

EUREKA SPRINGS – An initiative petition calling for a vote on rescinding the 2 percent City Advertising and Promotion Commission sales tax and abolishing the commission has begun circulating in the city. The petition calls for the measure to be placed on the Nov. 7 ballot.

Dr. Dean Kirkpatrick, a local chiropractor, said he has been working on the idea with local merchants for a few months and began circulating the petition Friday. Tuesday morning he said he already had more than 100 of the 144 signatures needed to place an initiative on the ballot.

See complete article here:

June 1, 2006

Statewide Special Election

December 13, 2005

At issue are highway bonds (Referred Question #1) and higher education bonds (Referred Question #2).

Complete text of each ballot question can be found on the Secretary of State's website:

Referred Question #1 Defeated!

Referred Question #2 Defeated!

The education bond was a real squeaker (defeated by fewer than 800 votes statewide) -- Governor Huckabee is hoping to have another election to try again!

Tax bringing in a pretty penny for county

By Frank Wallis, Bulletin Staff Writer

A double-digit rate of growth in revenue from Baxter County's sales tax continued in May with a return from the state of $422,187 representing one percent of retail sales in the county in March.

A report from the Baxter County Treasurer's office shows the distribution from the same collection period last year was $395,330.

At May's end, the county-wide tax generated $1.23 million so far this year, up 13 percent from the time period in 2004.

...

The city of Mountain Home issued licenses to 12 new businesses in May.

frankw@baxterbulletin.com

Enough already

"Arkansas Governor Mike Huckabee and state highway commissioners are scrambling to convince state legislators to refer to voters a $134 million tax package to issue a $1 billion highway bond program."

A chart accompanying the article shows that "Arkansas received more than $445 million from the federal government for highways in fiscal year 2003. By applying the same percentage of distribution as 2003, Arkansas would receive about $210 million from the additional spending amount each year, totaling $655 million. Coupled with $839 million the state received in state gasoline and diesel taxes, registration fees, bond proceeds, and interest, the Arkansas Highway Department should have as much as $1.49 billion to spend each year or $8.9 billion over the next six years."

Four reasons to oppose Ballot Question #1 on December 13, 2005

The people of Arkansas will vote on two separate ballot questions in a statewide election on December 13, 2005. Ballot Question #1 concerns highway bonds. This link will take you to the Arkansas Trucking Association website, where you can read an analysis summarizing the rationale for opposing this issue. Alternative solutions are also provided.

Congress is considering charging gas taxes by the mile

By Ledyard King, Gannett News Service

WASHINGTON -- Instead of taxing you on every gallon of gas pumped into your vehicle, the government is considering charging you for every mile you drive.

Why? With fuel efficiency on the rise and more people buying cars that run on alternative fuels, states are worried the gas tax revenues that help pay for roads and mass transit will shrink.

The idea is about to be tested in Oregon. Congress has proposed spending millions to try it in several other states.

...

This new "distance-pricing" method is being explored partly because Congress and many states are reluctant to raise gas taxes despite growing demand for more money to ease worsening highway congestion.

...

Taxpayer groups already fear this could be a backhanded way of raising taxes on motorists.

"The more complex they make the formula for determining who pays what, the more opportunity the politicians have to increase burdens without drivers necessarily knowing it," said Pete Sepp, a spokesman for the National Taxpayers Union.

For more of the story, visit:

The Springfield (MO) News-Leader

County sales tax revenue leaps 14.5%

By Frank Wallis, Bulletin Staff Writer

Revenue from the countywide 1-cent sales tax increased by 14.5 percent during the February 2005 collection period from the same collection period last year, according to Baxter County Treasurer Nelda Speaks.

The county received $405,807 from the state Sales and Use Tax Accounting Division last week.

Last year, the distribution from the February sales period was $338,782.

...

The year-to-year rate of increase was one of the largest, [Speaks] said.

...

Mountain Home's 1-cent sales tax increased by similar proportions during the February collection period. City Treasurer Bonny Conley said the tax garnered $288,734. Last year during the same period, the city tax brought in $240,930.

In 2000, the tax generated $208,425.

frankw@baxterbulletin.com

Bill would add nickel to pay-at-the-pump

The Associated Press

LITTLE ROCK -- Motorists in Arkansas would pay another nickel each time they buy gas at the pump under legislation intended to help improve the state's highways.

Rep. Phillip Jackson, R-Berryville, said Tuesday the legislation he introduced could be an alternative source of revenue for a $1 billion highway bond program or go into the state's general treasury if it couldn't be tied to road improvements.

"If we get some reasonable data, and it looks like something that's viable, then I'll talk to the governor about it and the highway department to see if they'll support it," Jackson said.

Under the bill, fuel retailers would add 5 cents extra to each purchase made by use of a credit or debit card, gift card or any other method of electronic payment.

Jackson said he's had a hard time finding research to determine how much the measure would generate.

~~~~~

NOTE: This bill (HB2838) died in legislative committee on May 13, 2005; see the following page on the AR Legislature web site to read the full text of the bill: http://www.arkleg.state.ar.us/ftproot/bills/2005/public/HB2838.pdf

Bill Status: HB2838

Sponsor: Jackson

AN ACT TO LEVY A FEE FOR THE USE OF DEBIT
OR CREDIT CARDS TO PURCHASE FUEL AT THE PUMP.

• House - May 13 2005    3:11:45 - Died in House Committee at Sine Die adjournment.
• House - Mar 7 2005    3:58:28 - Read the first time, rules suspended, read the second time and referred to the Committee on REVENUE & TAXATION- HOUSE
• House -Mar 7 2005    3:00:18 - Filed

Currently not scheduled on any agenda

Currently not scheduled on either House or Senate Calendar

Bill status from the AR Legislature web site http://www.arkleg.state.ar.us/

(click on "Bills and Resolutions," "Bill Status," then enter bill number in search box)

Greenspan likes idea of consumption tax
Fed chief says hybrid system might be best option for change

Alex Wong / Getty Images -- The Associated Press

WASHINGTON - Federal Reserve Chairman Alan Greenspan Thursday said some form of a consumption tax — such as a national sales tax — could spur greater economic growth, but he acknowledged that a hybrid approach might be more politically realistic.

Switching from an income tax to a consumption tax would generate huge opposition from Democrats, who argue that a greater burden would fall on the poor because they spend a far higher proportion of what they earn.

Acknowledging those concerns, Greenspan told the President’s Advisory Panel on Federal Tax Reform that policy-makers might want to consider a combination of an income- and consumption-based system.

for complete story, go to MSNBC's web site:

URL: http://www.msnbc.msn.com/id/7077499/

Copyright 2005 The Associated Press.