Revenue & Taxation- House

All these bills got a major impact or stack him up get worse in the session see what has support and it will start to work from there but with that Sir recognize yourself in the rips in the net please recognize yourself as well ma'am and your. For free C.. Thank you chairman thank you Committee as you know represent of Aaron Pilkington I've also got with me as well Denise Ennett who's also present as bills well I filed this and she spoke with me and said this was an issue she was very passionate about and so I think should be great to have us present this together especially with me and my new little one coming on the way I think she can probably help pick up the football after May. You want to say anything thank you for the kind words I represented in it and I will be speaking on behalf of Catherine Clark who is with the Arkansas period project thank you. Thank you as we proceed our. today present to you a bill to eliminate tax on feminine hygiene products and so some people refer to this as the pink tax are the period tax what it is that it's a. A tax on feminine hygiene products that does not exist in thirty other states. And what we're trying to do here is eliminate that this is a tax that only our female our Kansans are paying and I think that in creating Some equality in our tax code is by limiting this tax on feminine hygiene products right now it's estimated that it would be a one point five million dollar loss in general revenues but I think the benefits vastly outweigh the costs this is sending a message to all female our Kansans that we understand that this is a necessary products right now it's currently taxes a luxury product which I think everyone we can attest that this is not a luxury product this is a necessity and so but I got a letter and I think most of you all as well from Gavin Clark that I now represent and it is going going to read and I think it does a better job than I could ever possibly do and explaining the importance of this bill so I'd like to turn it over to my colleague. Thank you dear chair R. J. and the House Committee on revenue and taxation Arkansas tampons are taxed but Billboard advertising is not my name is Katherine Clark two and a half years ago I've founded a community group called Arkansas period project. I create this group after reaching out to principals in nurses it every public middle school and high school in little rock. And learnt that many girls in my community miss school every month because they cannot afford period products missing school because of the inability inability to a four pass in Tampines the girl's one hundred forty five days behind their male peers furthering the cycle of poverty. Have a Arkansas's population has ministration IT. Administrators are currently ministrations are will ministration in the future yet period products are still considered luxury items in our tax as such the there is there is nothing look serious about ministration there is nothing the jury is about having spent over two hundred dollars every year on period products excluding. Sorry. Sorry about that you could Since the tampon tax only applies to women and girls it is not just unfair is also a form of sex based discrimination and therefore unconstitutional and illegal under the equal protection clause of the Fourteenth Amendment of the United States constitution addition additionally let it be known that the cares Act Ark the the sorry the United States Congress dean minister minister sorry there is here. Mr products qualified mid medical expenses. Eligible for purchase for free for tax free health savings accounts like prescription drugs and other essential goods ending the tax on Perry products not only alleviates and discriminatory burden placed on women and girls of Arkansas it also shows the country that the world in the world the Arkansas cares about girls women and girls any tax period products we showed the Arkansas legislatures legend Legislative horse care about the health well being and livelihood of women and girls thank you thank you ma'am. One thing I'd like to add is a lot of homeless shelters have reach out to us and let us know that buying these products is part of their mission because a lot of homeless women cannot afford these products I buy limits tax they'll be able to let their dollars stretch further so they can provide more these products for the homeless women across Arkansas and and working in health care I can say that you know when fifteen hygiene's taking care of especially the homeless population it prevents ER visits and things like that that we see where unfortunately they don't get the care they don't can their hygiene isn't taken care of because they don't have they have a lack of access to these products and then it just you know it snowballs into a unfortunate medical encounter so our hope is that by also doing this we're gonna help out those shelters and let them have more products that they can distribute to the homeless women in Arkansas thank you Sir thank you ma'am your questions. Yes Sir there was any questions. The Serbs Rogers. Thank you have a message here I just have a comment I appreciate you guys just bringing awareness to this bring this amendment no one on the taking of vote on it but if the may then the needs that we have in this country in this state that we just aren't aware of and you know and I would have never had you not brought this here today I would have never known that the needs that there was young girl Smith and school because of this issue and a lot of our non profits can in our in our districts can can rally to this call as well and and and and get products to the shelter these needed agency that helped the young girl that appreciate just bring awareness to the today thank you. Thanks for any other questions. Do you want to speak to reason why we're going to hold this bill today. And members keep in mind this bill will be in the mix of the back into session to try to let this thing out so Administration but Division of speak to the fiscal impact in probably just when Partisi the magnitude of how much money this tax generates is to G. how important this is to a lot of folks of Arkansas. Thank you Mr chair Paul Garin Arkansas department of finance administration. D. they prepared a fiscal impact statement for House Bill ten sixty five at the bill as amended would be effective on the first day of the calendar quarter following the with the effective date of the act which would be October one of two thousand twenty one to be anticipated the revenue impact for that eight months of collections would be approximately one point five two million dollars for full twelve months of collections or your estimate was two point three million dollars I would be happy to answer any questions about the revenue impact and also. the bill is amended does comply with the streamline sales tax agreement that Arkansas is a part of. Any questions. Thank Paul anybody out as we speak against the bill. For the bill. Present the continuing close free bill. Yes thank you Chairman Jett yeah I was on revenue tax last session I know this is a really hard committed beyond and I know you're having make a lot of hard choices one way the other you know what to cut what not to count how much funds what we have how much do we collect and and it's a tough decision. I think in the grand scheme of things this is a very low amount to cut and I think it sends a great message The State of Arkansas about wanting to put our young girls and women. Honestly their medical needs should be taxes electric products because it is a necessity and I just I hope you keep that in mind when we have these discussions later on and I really think thank you for your time you're welcome Sir both representatives present yes stopping by. Was up next is house bill fourteen fifty seven this will be represented he's a bill. Thank members I'm prepared to let this bill out I know it's going to have a fiscal impact but I think once everybody here's the story in my mind when I engage with the members of the committee I think a lot of folks are in agreement with this. So with that being said a Speaker we talked leadership speakers understand of this bill come out now more like this will get held up on the sanity and but that's where I'm at and representatives when you get situated introduce yourself Sir and your preferred proceed. All right thank you Mr chairman. Before I get started I want to give a I thank you to someone who brought this idea to my attention and that that person is named Jill lands she's had the same sort of situation that our family had and I'll be explaining that here just a minute and help me come to the realization that the as you hear this is a. an issue that affects more families than I thought so I want to publicly say thank you to her for helping us with that so just give a little background. the Bill. Hi in the summer of two thousand eight we found out we were gonna be grandparents again. And eventually we found out that baby girl Stephen that baby was going to be born in February and we found out of course is going to be a girl so as most parents and grandparents do we all started to prepare for the arrival of this child. My daughter and her husband along with family and friends started purchasing all the things that you need for the arrival of a baby they decided that her name would be Paisley and. So at this point things are going along pretty smoothly in Paisley was scheduled to be delivered on February six. One single day before that I got a phone call from my wife. Through her tears. I could discern the words they can't find her heartbeat anymore. I'm sorry for. Remember that sinking feeling in my stomach as I drove home that night and went straight to the hospital. Our worst fears were true there was no heartbeat. Paisley had passed away one day before she was to be more. So my daughter indoor to normal delivery in Paisley came into this world only hours after she passed away. T. passed away from a syndrome called amniotic band syndrome. Otherwise she was a perfectly healthy perfectly formed beautiful little baby girl she had little chubby cheeks and she had her mother knows what we never even had the joy of seeing the colorized. We all gathered around got the holder cancer for a few hours before they took her away. And the next day proceeded like just any other normal day after you have a baby my daughter her husband gathered all their things at the hospital the flowers in the cards. And made their way to the car the only difference is they didn't have a baby to go with them. And at home it would look like any other day when you bring your baby home for the first time. There was a nursery full of all the things that child needs there was a rocking chair crib changing table and the little mobile that. Would sing songs to help or sleep. Their car seats. Strollers diapers wipes bottles blankets. The stories and her name was paid on the wall. But pays the button there. So the agony though doesn't end there. The days that followed including have to make decisions on funeral arrangements. Where we would lay Paisley to rest. They had to pick out and pay for her casket. And paper barrio plot. The burial marker was also an additional cost these were things we never dreamed to be doing three days after having a baby. It's the most painful thing I have ever seen. But what I did learn. Is our families not alone there are hundreds of Arkansas families each year they go through the same trauma and heartbreak. And my heart goes out to every single one of. I hope this bill offers at least a small bit. A relief to these grieving parents. So this bill does it would allow the parents of a stillborn child a one time tax credit of five hundred dollars. It applies to a stillborn child who has reached twenty weeks of gestation including death during childbirth the reason twenty weeks is in there because it currently that is the medical definition of stillbirth. The anticipated revenue impact is going to be somewhere around a hundred thirty nine thousand dollars because there's about two hundred and seventy nine families that experience this and that's based on twenty eighteen. I'd like to see the revenue impact zero. I'd like to have no families experienced this. The whole point of the tax credit. Is that children are expensive a parent spends just as much money preparing for child born alive as they do for a stillborn child. Especially if the child is near full term. So. My opinion on the bill it serves three purposes first today knowledges parenthood. A law firm that these parents are still parents of their stillborn child. Second my hope is that raise awareness. Of the issue of infant mortality something we talked about on the house floor today. Third it help parents with some of the costs are going to face. And those costs that parents face especially with stillbirth or elevated medical costs because still burst tend to cost more and they may be faced with additional costs like an autopsy or genetic testing to find out what happened. And lastly unfortunately they faced funeral and burial costs because there's no life insurance to help the families. But thankfully still birth is still fairly rare so it's a very very minimal impact on tax revenue. But it will make a big difference for these families and while the tax credit. Can ease the pain caused by the death of a child. It will ease the financial strain caused by this unexpected death. The parents who are struggling with grief or just trying to put one foot in front of the other and they shouldn't have to worry about the financial impact caused by the loss of their child. That I would be happy to take any questions. Members have any questions. Remeber. Thank you first of all thank you and thank you for bringing this to our attention I remember you being in the chamber I think many of us do and we appreciate you taking real life stories and bringing it here I did just want when you when you were talking you said something about stillbirth which I understood that may even looked up the definition to see what that is and why twenty weeks and and all that I am just curious you then said You know if the baby dies during delivery. That that would be included so help me and I think it's already covered but I wanna make sure it's covered after the baby is born you know we have children who are board went into self fully and died shortly after birth maybe even an hour or two after birth can you just help me for my own knowledge make sure that those families also. Receive the same tax credit the tax credit is based on our current definition the definition that the legislature set up based on stillbirth so a child that is born alive would not be covered under this bill. But if you want to run that bill I will co sponsor that bill for you. So so currently if the child is born alive but dies within an hour or two or whatever they don't get the tax credit that's correct they would be considered dependent dependent on that tax payers I guess tax forms. Because they were born alive. Twenty weeks is the cut off for stillbirth if you're born before. Before twenty weeks it's considered a miscarriage twenty weeks in greater is considered a stillbirth if you're born alive and then you pass away an hour or days later you will be considered and penned a dependent okay but if you if that's something you feel like you'd like to help I will help you with that I was just we're we're sitting here talking about it no questions came. Satcher. Thank you ma'am any other questions members yes Sir Richmond Cllr. Again thank you for bringing this. this seems like an odd question but out of my ignorance I speak. Why is the amount only five hundred dollars yeah that that question came up to I had started at five hundred it went to two thousand. and we settled on five hundred to minimize the impact to state revenue there other states that do different treatments some do some small tax credits some of them are up to two or three thousand dollars but it it it's not a direct tax credit is considered a deduction so it depends on where you fall and then the tax writers I guess on what your benefit would be this would be a dollar for dollar tax credit I'd be happy to make it higher but I think we need to start somewhere and we settled on five hundred dollars based on where rat in the current the I guess based on the current revenue impact. Thank you Sir Russian LUNDSTRUM the request now. That was my similar question I just wondered why it was so low it seems like it should be like a thousand because of funeral expenses and cost I agree so and and if this bill passes and I think that when it gets to the Senate they're probably gonna hold on any revenue impact Bills hopefully the let it out toward the end because it's such a small impact but I would rather do something then nothing for these families at this point. Member center questions. If not anybody notice will speak for the bill. The but this time we were asked if they come to the end of the table but I'm not going to put DFA in awkward positions speak against this bill we know the fiscal impact we let this out today is a hundred thirty five thousand I'm fully prepared to do it but obviously this act will of this committee. Represent please your clothes make a motion I would think that some. I just want to point something out The daughter that I'm speaking about is right behind me. And. I'm sorry. She has another baby her name is Emerson and emotional color rainbow baby and after every storm there's a rainbow. Senate version was born. About a year after Paisley died and they want to come see it. I apologize for getting emotional but not just wanted to make sure I recognize my wife and my daughter and my granddaughter being here to support this bill and with that I would make a motion to pass we have a motion to pass the debate now is repealed or would you have something that Sir. Representatives would to. Would you entertain a motion to increase it to a thousand dollars and this is let the Senate decide what they will do they will deal with it. But I just agree and I've had some text apparently from some members here in the room and and what we all agree that five hundred Saddam that would you entertain them widget Tyler do you feel safer with five hundred I feel safer with five hundred I'd be happy to thank you for that I thought I'd make it five thousand but could but I feel safer it at five hundred but my might I would entertain the thousand dollar increase maybe as an amendment and if we can get it through the Senate and then we can just concur over here in the House it if and I would take chairman Jett advice on that as well yeah I think I think overall agreements or by shaking her head so let's do this let's pass this out to Davis the will of the committee and then at the back into session let's put this in a mix of Bills give the chairman Jean and the Speaker and stuff and tell them that we want amend a bill back to thousand fault you don't care take a fiscal impact of a thousand I'm services going double submission materna sixty some thousand for me asking for on this thing so list put that in the mix and if we think we do the thousand little by this kind of what we want what what committee for enough everybody. All right so it we anymore debate members. All in favor say aye. Regulations for you pastor bill thank you guys I appreciate it not polygons forget in motion thank you to are you good buddy. All right members. The next Tuesday we got to to kind of party list coming up. Find. Right thanks to. All right you're ready write this down please we don't care. Next Tuesday we're gonna look at to House Bill ten thirty four. Ten forty four. Ten forty eight. In we we had the member nineteen fifties post come back so we're going to do that bill it hard what to ask for re referred back to committee going put the member nana as ten fifty and last but not least a reputation this one house bill fifteen forty six this the surtax. So that's common expect probably get lit up between now and that time so We'll take it and just know that that's probably one of the Senate probably get held up the leadership on set out in later but it's kinda start talking about it so any questions feel free to to submitted should jacket called anybody anything else. With that we are adjourned. Forty four forty eight ten fifty