Revenue & Taxation- House
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Bills discussed (38)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
|
HB1404
· 8 mentions in transcript, agenda, chapter
Matched: “OK, next bill that we're going to take up is House Bill 1404, that's Representative Cooper. Representative Cooper, you a…”
|
TO CREATE A TAX CREDIT FOR CONTRIBUTIONS TO A PREGNANCY RESOURCE CENTER. | C. Cooper | Died in House Committee at Sine Die adjournment. |
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HB1534
· 3 mentions in chapter, agenda, transcript
Matched: “HB1534 Schulz TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT.”
|
TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT. | Schulz | Died in Senate Committee at Sine Die adjournment. |
|
HB1116
· 2 mentions in agenda, chapter
Matched: “…Y. SPECIAL ORDER OF BUSINESS - DATE Number Sponsor Subtitle HB1116 Ray TO CREATE THE REMOTE AND MOBILE WORK MODERNIZATION AND…”
|
TO CREATE THE REMOTE AND MOBILE WORK MODERNIZATION AND COMPETITIVENESS ACT; AND TO PROVIDE INCOME … | Ray | Died in House Committee at Sine Die adjournment. |
|
HB1203
· 2 mentions in agenda, chapter
Matched: “…Rep. Richard McGrew REGULAR AGENDA Number Sponsor Subtitle HB1203 Underwood TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLE…”
|
TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLECT TAXES. | Underwood | Died in House Committee at Sine Die adjournment. |
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HB1438
· 2 mentions in agenda, chapter
Matched: “…CREDIT FOR CONTRIBUTIONS TO A PREGNANCY HELP ORGANIZATION. HB1438 Cavenaugh TO CREATE AN INCOME TAX CREDIT FOR TAXPAYERS SIXT…”
|
TO CREATE AN INCOME TAX CREDIT FOR TAXPAYERS SIXTY-FIVE AND OLDER IN AN AMOUNT EQUAL … | Cavenaugh | Died in House Committee at Sine Die adjournment. |
|
HB1444
Act 548
· 2 mentions in chapter, agenda
Matched: “HB1444 Pilkington TO AMEND THE SALES AND USE TAX EXEMPTION FOR DAT…”
|
TO AMEND THE SALES AND USE TAX EXEMPTION FOR DATA CENTERS. | Pilkington | Notification that HB1444 is now Act 548 |
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HB1464
· 2 mentions in chapter, agenda
Matched: “HB1464 Vaught TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS FO…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS FOR AND REPAIR OF AGRICULTURAL … | Vaught | Died in House Committee at Sine Die adjournment. |
|
HB1469
· 2 mentions in chapter, agenda
Matched: “HB1469 Beaty Jr. TO CREATE THE BROADBAND EXPANSION AND EFFICIENCY…”
|
TO CREATE THE BROADBAND EXPANSION AND EFFICIENCY ACT; AND TO CREATE A SALES AND USE … | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
|
HB1472
· 2 mentions in agenda, chapter
Matched: “…IPMENT USED IN PRODUCING BROADBAND COMMUNICATIONS SERVICES. HB1472 Beaty Jr. TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS PURCHASED TO REPAIR AGRICULTURAL EQUIPMENT … | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
|
HB1485
· 2 mentions in agenda, chapter
Matched: “…ERY AND PARTS AND SERVICES PURCHASED TO REPAIR A GRAIN BIN. HB1485 K. Brown TO CREATE A SALES AND USE TAX EXEMPTION FOR SALES…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR SALES TO CERTAIN ORGANIZATIONS THAT SUPPORT … | K. Brown | Died in Senate Committee at Sine Die adjournment. |
|
HB1497
Act 411
· 2 mentions in agenda, chapter
Matched: “…TO CERTAIN ORGANIZATIONS THAT SUPPORT VETERANS' FACILITIES. HB1497 Painter TO ADD THE DEPARTMENT OF THE MILITARY TO THE LIST O…”
|
TO ADD THE DEPARTMENT OF THE MILITARY TO THE LIST OF CLAIMANT AGENCIES FOR PURPOSES … | Painter | Notification that HB1497 is now Act 411 |
|
HB1500
· 2 mentions in chapter, agenda
Matched: “HB1500 Beaty Jr. TO ENHANCE ECONOMIC COMPETITIVENESS BY REPEALING…”
|
TO ENHANCE ECONOMIC COMPETITIVENESS BY REPEALING THE THROWBACK RULE. | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
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HB1501
· 2 mentions in chapter, agenda
Matched: “HB1501 Beaty Jr. TO ADOPT FEDERAL INCOME TAX LAW REGARDING DEPRECI…”
|
TO ADOPT FEDERAL INCOME TAX LAW REGARDING DEPRECIATION AND THE EXPENSING OF PROPERTY; AND TO … | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
|
HB1520
· 2 mentions in chapter, agenda
Matched: “HB1520 Cavenaugh TO REQUIRE THE SECRETARY OF THE DEPARTMENT OF FIN…”
|
TO REQUIRE THE SECRETARY OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND THE DEPARTMENT OF … | Cavenaugh | WITHDRAWN BY AUTHOR |
|
HB1521
· 2 mentions in agenda, chapter
Matched: “…areas as 'Members and Staff Only'. CERTAIN AMOUNT OF TIME. HB1521 Cavenaugh TO REPEAL CERTAIN UNUSED, UNDERUSED, OR UNFUNDED…”
|
TO REPEAL CERTAIN UNUSED, UNDERUSED, OR UNFUNDED TAX INCENTIVES. | Cavenaugh | WITHDRAWN BY AUTHOR |
|
HB1538
· 2 mentions in chapter, agenda
Matched: “HB1538 Ray TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCO…”
|
TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCOME TAX DEDUCTION; AND TO INCREASE … | Ray | Died in House Committee at Sine Die adjournment. |
|
HB1540
· 2 mentions in agenda, chapter
Matched: “…ARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION. HB1540 J. Mayberry TO AMEND THE INCOME TAX CREDIT AND THE INCOME T…”
|
TO AMEND THE INCOME TAX CREDIT AND THE INCOME TAX DEDUCTION RELATED TO MAINTAINING, SUPPORTING, … | J. Mayberry | Died in House Committee at Sine Die adjournment. |
|
HB1015
· 1 mention in agenda
Matched: “…ES AND NONRESIDENTS. DEFERRED BILLS Number Sponsor Subtitle HB1015 D. Garner TO AMEND THE INDIVIDUAL INCOME TAX LAWS; AND TO C…”
|
TO AMEND THE INDIVIDUAL INCOME TAX LAWS; AND TO CREATE AN INCOME TAX CREDIT FOR … | D. Garner | Died in House Committee at Sine Die adjournment. |
|
HB1016
· 1 mention in agenda
Matched: “…AND TO CREATE AN INCOME TAX CREDIT FOR DEPENDENT CHILDREN. HB1016 Ennett TO CREATE A SALES AND USE TAX EXEMPTION FOR MENSTRUA…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR MENSTRUAL DISCHARGE COLLECTION DEVICES; TO CREATE … | Ennett | Died in House Committee at Sine Die adjournment. |
|
HB1018
· 1 mention in agenda
Matched: “…E TAX EXEMPTION FOR CERTAIN ITEMS RELATED TO BREASTFEEDING. HB1018 Hudson TO CREATE THE STRONG FAMILIES ACT; AND TO CREATE AN…”
|
TO CREATE THE STRONG FAMILIES ACT; AND TO CREATE AN INCOME TAX CREDIT FOR EMPLOYERS … | Hudson | Died in House Committee at Sine Die adjournment. |
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HB1019
· 1 mention in agenda
Matched: “…ROVIDE PAID FAMILY AND MEDICAL LEAVE FOR CERTAIN EMPLOYEES. HB1019 D. Garner TO CREATE THE AFFORDABLE CHILDCARE ACT OF 2025; T…”
|
TO CREATE THE AFFORDABLE CHILDCARE ACT OF 2025; TO CREATE AN INCOME TAX CREDIT FOR … | D. Garner | Died in House Committee at Sine Die adjournment. |
|
HB1021
· 1 mention in agenda
Matched: “…COME TAX CREDIT FOR EMPLOYER-OPERATED CHILDCARE FACILITIES. HB1021 D. Garner TO CREATE THE EARLY CHILDHOOD EDUCATION WORKFORCE…”
|
TO CREATE THE EARLY CHILDHOOD EDUCATION WORKFORCE QUALITY INCENTIVE ACT; AND TO CREATE AN INCOME … | D. Garner | Died in House Committee at Sine Die adjournment. |
|
HB1026
· 1 mention in agenda
Matched: “…E TAX CREDIT FOR CERTAIN EARLY CHILDHOOD EDUCATION WORKERS. HB1026 A. Collins TO CREATE THE ARKANSAS PROMISE ACT; AND TO CREAT…”
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TO CREATE THE ARKANSAS PROMISE ACT; AND TO CREATE AN INCOME TAX CREDIT FOR TUITION … | A. Collins | Died in House Committee at Sine Die adjournment. |
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HB1063
Act 875
· 1 mention in agenda
Matched: “…IGIBLE STUDENT AT A PUBLIC INSTITUTION OF HIGHER EDUCATION. HB1063 J. Mayberry TO AMEND THE ACHIEVING A BETTER LIFE EXPERIENCE…”
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TO AMEND THE ACHIEVING A BETTER LIFE EXPERIENCE PROGRAM ACT; AND TO AMEND THE DEFINITIONS … | J. Mayberry | Notification that HB1063 is now Act 875 |
|
HB1065
· 1 mention in agenda
Matched: “…O CHANGE DISABILITY ONSET AGE FROM TWENTY-SIX TO FORTY-SIX. HB1065 Ray TO CREATE THE INFLATION REDUCTION ACT OF 2025. HB1066 R…”
|
TO CREATE THE INFLATION REDUCTION ACT OF 2025. | Ray | Died in House Committee at Sine Die adjournment. |
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HB1066
· 1 mention in agenda
Matched: “…. HB1065 Ray TO CREATE THE INFLATION REDUCTION ACT OF 2025. HB1066 Ray TO INCREASE THE STANDARD DEDUCTION. HB1076 Hudson TO CR…”
|
TO INCREASE THE STANDARD DEDUCTION. | Ray | Died in House Committee at Sine Die adjournment. |
|
HB1072
Act 876
· 1 mention in agenda
Matched: “…LICENSED CHILDCARE PROVIDERS; AND TO DECLARE AN EMERGENCY. HB1072 C. Cooper TO CLARIFY THE REQUIREMENTS FOR ESTABLISHING ELIG…”
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TO CLARIFY THE REQUIREMENTS FOR ESTABLISHING ELIGIBILITY FOR THE PROPERTY TAX EXEMPTION FOR DISABLED VETERANS, … | C. Cooper | Notification that HB1072 is now Act 876 |
|
HB1076
· 1 mention in agenda
Matched: “…ACT OF 2025. HB1066 Ray TO INCREASE THE STANDARD DEDUCTION. HB1076 Hudson TO CREATE THE CARING FOR CAREGIVERS ACT; AND TO PROV…”
|
TO CREATE THE CARING FOR CAREGIVERS ACT; AND TO PROVIDE AN INCOME TAX CREDIT FOR … | Hudson | Died in House Committee at Sine Die adjournment. |
|
HB1129
Act 407
· 1 mention in agenda
Matched: “…VETERANS, SURVIVING SPOUSES, AND MINOR DEPENDENT CHILDREN. HB1129 Gramlich TO AMEND THE DEFINITION OF "HOMESTEAD" FOR THE PUR…”
|
TO AMEND THE DEFINITION OF "HOMESTEAD" FOR THE PURPOSE OF THE PROPERTY TAX EXEMPTION FOR … | Gramlich | Notification that HB1129 is now Act 407 |
|
HB1190
· 1 mention in agenda
Matched: “…INCURRED IN CARING FOR CERTAIN FAMILY MEMBERS. Page 2 of 3 HB1190 Vaught TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS. HB12…”
|
TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS. | Vaught | Died in House Committee at Sine Die adjournment. |
|
HB1216
· 1 mention in agenda
Matched: “…1190 Vaught TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS. HB1216 Long TO CREATE THE FREE MARKET ZONES ACT; AND TO EXEMPT A B…”
|
TO CREATE THE FREE MARKET ZONES ACT; AND TO EXEMPT A BUSINESS LOCATED IN AN … | Long | Died in House Committee at Sine Die adjournment. |
|
HB1250
· 1 mention in agenda
Matched: “…TE FRANCHISE TAX, AND THE ELECTIVE PASS-THROUGH ENTITY TAX. HB1250 Duffield TO CREATE A SALES TAX HOLIDAY FOR DISASTER-PREPARE…”
|
TO CREATE A SALES TAX HOLIDAY FOR DISASTER-PREPAREDNESS SUPPLIES TO ENCOURAGE DISASTER-PREPAREDNESS. | Duffield | WITHDRAWN BY AUTHOR |
|
HB1303
Act 546
· 1 mention in agenda
Matched: “…R-PREPAREDNESS SUPPLIES TO ENCOURAGE DISASTER-PREPAREDNESS. HB1303 Jean TO CREATE THE SUSTAINABLE AVIATION FUEL INCENTIVE ACT;…”
|
TO CREATE THE SUSTAINABLE AVIATION FUEL INCENTIVE ACT; AND TO CREATE AN INCOME TAX CREDIT … | Jean | Notification that HB1303 is now Act 546 |
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HB1319
· 1 mention in agenda
Matched: “…ION ON UTILITIES USED TO PRODUCE SUSTAINABLE AVIATION FUEL. HB1319 Crawford TO PROVIDE AN EXEMPTION FROM STATE SALES TAX FOR D…”
|
TO PROVIDE AN EXEMPTION FROM STATE SALES TAX FOR DISABLED VETERANS, SPOUSES OF DISABLED VETERANS, … | Crawford | WITHDRAWN BY AUTHOR |
|
HB1366
· 1 mention in agenda
Matched: “…ABLED VETERANS, AND SURVIVING SPOUSES OF DISABLED VETERANS. HB1366 Ennett TO CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM S…”
|
TO CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM SHELTERS. | Ennett | Died in House Committee at Sine Die adjournment. |
|
HB1386
Act 410
· 1 mention in agenda
Matched: “…O CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM SHELTERS. HB1386 Cavenaugh TO AMEND THE LAW CONCERNING THE ASSESSMENT OF PRO…”
|
TO AMEND THE LAW CONCERNING THE ASSESSMENT OF PROPERTY; TO AMEND THE LAW CONCERNING SUBSTANTIAL … | Cavenaugh | Notification that HB1386 is now Act 410 |
|
HB1388
· 1 mention in agenda
Matched: “…REAL PROPERTY UNDER ARKANSAS CONSTITUTION, ARTICLE 16, § 5. HB1388 Vaught TO EXEMPT CERTAIN STORAGE SERVICES FROM SALES TAX; A…”
|
TO EXEMPT CERTAIN STORAGE SERVICES FROM SALES TAX; AND TO EXEMPT THE SERVICE OF FURNISHING … | Vaught | Died in House Committee at Sine Die adjournment. |
|
HB1435
· 1 mention in agenda
Matched: “…URT FROM SALES TAX, AS AFFIRMED BY REFERRED ACT 19 OF 1958. HB1435 Achor TO AMEND THE LAW CONCERNING INCOME TAX CREDITS FOR CH…”
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TO AMEND THE LAW CONCERNING INCOME TAX CREDITS FOR CHILD CARE; TO AMEND THE INCOME … | Achor | Died in House Committee at Sine Die adjournment. |
Machine transcript
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Schultz, if you'd like to go to the end of the table
Representative Bart Schulz
Unverified
0:25
and recognize yourself, you may present your bill. Thank you, Mr. Chair and good morning committee. Today I present House Bill 1534. Bottom line, this legislation is to put money back into the hands of hardworking Arkansans. This is an act to increase the homestead tax credit from its current rate of $500 to a new rate of $600 per qualifying household.
Just a brief history in the year 2000, the citizens of Arkansas overwhelmingly voted in favor of Amendment 79 to create the homestead tax credit. In response, the legislature created the property tax relief fund. Over time, that fund has grown. Precipitating several increases to the homestead tax credit. Including a recent increase from 425 to $500 during our June 2024 special session.
This current proposed increase from $500 to $600. due in large part to Arkansas's thriving economy is the largest single increase in the history of the Arkansas Homestead tax credit with well over 70 bipartisan co-sponsors in the house and over 30 bipartisan co-sponsors in the Senate. This is a great way to put money back into the pockets of the hardworking homeowners around the state with zero physical impact to general revenue. At this time, I would answer any questions.
Are there any questions by members of the committee?
Representative Johnny Rye
Unverified
1:59
Representative Rye, you're recognized for a question. Yes, thank you, Representative Bart, for giving us all that information. How much is that half cent at this time actually producing a year, sir. Uh, I don't have that exact number
Speaker 11
2:12
with me, Representative Rye. It isn't it close to $400 million?
Representative Bart Schulz
Unverified
2:20
It's in that ballpark. I don't have the exact number, but it can cover
it. Oh yes, this is, this is a conservative estimate, uh, it will cover it, no problem. I appreciate you. Thank
you, sir. Representative Schultz, could you speak to the report that DFNA put out, um, I don't know, 22 or 3 weeks ago on the property
tax relief trust fund and the balance and their recommendation on your bill. Yes, sir, they, they recommended.
Representative Bart Schulz
Unverified
2:50
This $100 amount they said uh With the amount that's in the fund currently and they project, I believe it's 2 2.5% increase in the fund yearly. That this would more than cover it. Uh, like I say, very conservative estimate. Uh, this current increase will be about $56 million in 2026 in about 56.8 million. In 2027 impacting about 708,000 Arkansans with this tax credit.
Are there any other questions from committee members? OK, seeing no other questions. I do not see anyone
signed up to speak for or against the bill, but we'll ask, is there anyone here to speak on this, on this bill? OK. Seeing no one, Representative Schultz, would you like to close for your bill? I'm closed for my bill and I would appreciate a good vote. All right, what are the wishes
of the committee? All right, motion by Representative Wing due pass. All those in favor say aye. All those opposed. Congratulations, Representative, your bill is passed. Thank you committee. Committee, I, I probably
should have mentioned prior to this one because it has no general revenue impact, we are, we, you know, we could accept a motion on that one. I apologize for not. Clarifying that better earlier rookie mistake.
OK, next bill that we're going to take up is House Bill 1404, that's Representative Cooper. Representative Cooper, you are recognized to come to the end of the table, introduce yourself, and you may proceed. Representative Cameron Cooper, District 57. Mr. Chair, could I
Representative Cameron Cooper
Unverified
4:42
have my friend from uh Family council, Cherise Dean, joined me at the end of the table. Thank you, thank you.
Colleagues, I have today House Bill 1404. Um, I filed a similar bill
in the previous session. Uh, this is a little bit different, a little bit simpler. The other was a little bit more complicated, uh, with caps on tax credits. But this bill creates a tax credit for contributions to a pregnancy help organization. If you don't know what that term means, these organizations provide services at no cost to expecting parents. Some of these services include
pregnancy testing, STD testing, ultrasounds. Parenting, coaching, diapers, baby formula, and other services. These centers are generally organized with a medical director, which is typically an OBGYN and they're staffed by registered nurses and certified life coaches. These are good pro-life organizations, and I believe they're they are very worthy of our support. So what does this bill do? It simply creates a non-refundable tax credit equal to 50%.
The total amount of contributions the taxpayer makes to a pregnancy help organization. For example, if an individual donates $2000 to a pregnancy help organization and 50% of that, or $1000 would come off the top. Of their state income tax liability. The bill states that DFA will promulgate rules for the implementation of this credit. If you'll take a look at the fiscal impact we see the DFA estimates a $10 million reduction in general revenue.
And an estimated cost of $8000 for updating of tax forms, computer programs, and instructions. You'll also see a recommendation to clarify whether an eligible donation but also qualify as a charitable income tax deduction. I do agree with that recommendation. This is an oversight that we had when we drafted the bill. We should have included that in there. It's not my intent for a contribution to qualify as both a deduction and a credit. I think the taxpayer would need to choose one or the other when making that donation, so I'm willing to make an
amendment to clarify that in the bill if this committee desires to move forward with that bill. We have um several directors of pregnancy health organizations here today to speak in favor of the bill, and they can provide more insight and more clarity on the services they provide, but before they did that, I'd be glad to
answer any questions that the committee may have. All right, are there questions
from committee members? OK, I've got a few, so I'll start and then if anybody else has questions, they can hop
in the queue. So, um, Representative Cooper on if someone were to donate something other than money. Um, I know that's allowed for in the bill. What's the process for determining the value of the uh uh
you know, if they donated property, for example, and all of that, who would, who would make that determination? I, I believe that would be up to DFA when they promulgate
Representative Cameron Cooper
Unverified
7:57
those rules. I think I may have seen
something in the fiscal impact that mentioned that. Um, if they need further clarification on that, then I would
be definitely be willing to include that in an amendment
to the bill. OK. Um, Yes, I
have a question for DFNA about the fiscal impact statement, um, Paul, would you be willing to take a question or two.
Speaker 30
8:33
Go ahead and introduce yourself. Thank you, Mr. Chair, members
of the committee, Paul Gehring, DFA. OK, um, could you explain sort of how you, how did you come up with the $10 million number? How did you derive that? What, what sort
Speaker 30
8:50
of your methodology on that? Certainly, thank you, Mr. Chair. So, uh, when we have a a new tax credit that is going to be available under Arkansas law. It is challenging for our excise tax section as well as our
income tax section to provide an estimate um with regards to figuring out exactly what would be the Um, expected. A number of credits claim, typically a tax credit when it's new might some from time to time a bill would specify that there is a cap on the amount of credits, which makes it very straightforward for DFA to provide an estimate, but um our Individuals that are tasked with providing the fiscal impact statement for a new credit just as in this particular bill they
have to look at census data as to amount of individuals um that um and also demographics, uh, similar organizations that perceive um contributions. So it is, it is challenging in order to come up with the with the possible estimate, um, so, uh, it's certainly just an estimate. It would have to, we would have to see actually returns that were File that claimed the credits in order to make the most possible uh accurate estimate of um, How many people would be
qualified for and receive the credit if it's variety of information goes into the methodology. OK,
thank you for that. Um, are there any other questions from committee, Representative Lynch, you're recognized. Uh, good
Representative Roger D. Lynch
Unverified
10:22
morning. About how much money is donated annually now to your organization. You have that number. I, I think the, the directors
Representative Cameron Cooper
Unverified
10:32
can probably answer that question when they come up and speak.
Representative Roger D. Lynch
Unverified
10:40
OK, so do I wait or do I get it now? OK,
Speaker 41
10:49
OK. Thank you. Good morning, Cheri Camp with Family council. Um, there are several pregnancy help organizations in Arkansas with estimate around 60 and they um vary in size and um establishment, there are some that have been established for 30+ years and there are some
that are just starting their smaller ones that probably have a budget of 100,000 or more um around that area. And then there's some that have several 100,000, so it really varies according to the area, um, and the needs of that that community, um, so the directors that speak can speak to their organizations, um, they've been around, um, directing their organizations for quite a while so they can speak to their um their community, but it, it's quite varied.
No. Representative Wang, you recognized for a question. Thank you, Mr. Chair. Uh, how many of the pregnancy help organizations
Representative Carlton Wing
Unverified
11:54
are not already 501c3. So is everybody a 501c3. Yeah, I believe, I believe. I believe they
Speaker 41
12:03
are, yeah, I don't know of any that are not 501c3s. OK, so all
Representative Carlton Wing
Unverified
12:09
of them, the contributions are at, at minimum right now tax deductible. This
is just seeking to make it a tax credit or whichever one is more beneficial to the taxpayers.
OK, thank you. Representative Bark should recognized for her
Representative Sonia Eubanks Barker
Unverified
12:26
question. Thank you, Mr. Chair. I noticed in the bill, um, Representative Cooper, the January 1st, 2023 date, so the pregnancy help center organization has to exist as of that date. How does that play with with new organizations coming online.
Speaker 41
12:48
Speak to that. There are, um, there are a few new organizations, but as I stated before, most of them are well established, so this, um, would, um, really is geared to uh organizations that have been established at least a year, um, in this case, I guess what did me in 23, um. At this point, at least 2 years, but um it's really geared toward organizations that have already gotten established, um, and, um,
already existing. Thank you. You're welcome. Representative Rye,
Chair
Unverified
13:26
you're recognized for a question. No, Representative Rye, you're recognized for a question
that was answered. Thank you. Representative Cooper, um, so following up on the question that was just asked, what if this bill were
to pass and say 2 or 3 years down the road, a new pregnancy help organization were founded, and they met all the other criteria.
Would, would they have any way of um becoming eligible for the credit? I
Representative Cameron Cooper
Unverified
13:55
think under this bill, uh, this body would have to would have to amend, make an amendment to include them. The way this bill is written. OK. Um If I
could, I, I want to ask just sort of um a philosophical question. I know you're, this bill is specifically focused on pregnancy help organizations
which do great work, um, they do very important work. I would argue life saving work, but there's a lot of organizations that do life saving work. There's organizations that work on suicide prevention. There's organizations that work on helping women who face domestic violence. There's groups that drill water wells for people in Haiti. Um, Why, why would we, why would we target just this specific donations to these specific nonprofits rather than, you
know, others like the ones I just
mentioned. Well, we talk about
Representative Cameron Cooper
Unverified
14:56
Arkansas being the most pro-life nation in the state, correct? But, uh, pro-life is not just uh Anti-abortion, pro-life is supporting parents, supporting families, supporting children, uh, even after birth and so that's what these organizations do, uh, they do a great work and I appreciate the work they do and ultimately the decisions will be up to this committee and
up to the legislature as a whole of uh what organizations we feel are worthy of, of support through tax credits.
All right. Are there any other questions from committee members? OK, seeing none, we
do have um a few folks signed up to speak for the bill, uh, first one on the list is Donna Ezel. Donna, if you're here, you're invited to come to the table and Introduce yourself for the
record, if you don't mind who you're with and then you're recognized to share your testimony. Hi, I'm
Speaker 63
15:58
Donnel, and I'm the executive director of Caring Heart's Pregnancy Center, and we are here in Little Rock and North Little Rock. Um, thank you for the opportunity to speak today in support of House Bill 1404, a measure that provides tax credits to donors who support pregnancy help organizations like our own. The bill is strategic and compassionate investment in Arkansas families, empowering individuals and communities to
offer life-affirming resources to women facing unplanned pregnancies. Pregnancy resource centers like Caring Hearts play critical roles in providing free services, including pregnancy confirmation through pregnancy test and ultrasound, pregnancy options counseling, prenatal care referrals, um, pregnancy verification needed to apply for Medicaid to receive early prenatal care. Material assistance in adoption referrals and support. These organizations like mine operate
on the generosity of donors who believe in offering women real choices and tangible support. House Bill 1404 encourages that generosity, ensuring that these vital services remain accessible to those in need. Caring hearts alone estimated in 2024 that we provided nearly $400,000 worth of free medical services. That's only the medical service. is not material services we give out. And, and that includes pregnancy test, ultrasounds, STI testing, which is sexually
transmitted infection testing and treatment. Funding for these essential services come from approx come from our donors, um, I do have some numbers I can share, um, at the end about 75% individual donors, 13% from churches, 2% from businesses and 10% from grants, both private and government sources. However, and that's just from caring hearts, but our numbers break down to. However, fundraising requires considerable time and effort, time that could be better spent
focusing on our clients. Um, tax credit proposed in this House Bill 1404 would alleviate some of that burden, allowing organizations like Caring Hearts to dedicate more resources directly to women and families in need. Since 2022, approximately 1600 of carrying heart donors have lapsed in their financial giving. However, half of those donors remain involved in non-financial ways, demonstrating that their pro-life commitment remains strong despite economic challenges. This indicates that many donors may have been forced
to pause their financial contributions due to economic constraints. We believe that a tax credit could help bring back many of these lapsed donors reigniting their financial support while also encouraging new donors to contribute. This legislation not only strengthens Arkansas families but also provides a fis. Fiscally responsible solution by supporting pregnancy help organizations, we help produce uh demand for taxpayer funded social excuse me, social services as these organizations
equip women with resources needed to make informed decisions for themselves and their unborn children. The tax credit incentivizes private contributions, leveraging, excuse me, I'm a little nervous, leveraging community support without increasing government spending. Additionally, similar tax credit programs in other states have demonstrated success, increased charitable giving, and expanded the reach of pregnancy resource centers. This bill aligns with Arkansas's commitment to fostering a culture of life and empowering women with meaningful
alternatives and support. I'm asking you to support this bill. Thank you. Thank you, Miss Eel.
Would you mind taking a question or two from committee members? I don't mind. OK. Representative McAlinden, you're recognized for a question. Thank you, Chairman. Thank you for being here, Donna, I appreciate
Representative Mindy McAlindon
Unverified
19:44
it and I appreciate the good work that you do. You do a lot for our community. I had a quick question for you. You mentioned that it would alleviate your part of your fundraising burden and that it was successful in other states. So I'm curious based on what you've seen in other states, what the percent
increase you are projecting of donations by having this as a tax credit instead of a
Speaker 63
20:06
tax reduction. Well, I have no way of knowing what percentage that that would increase. I did talk to an executive director in Mississippi yesterday who has been receiving tax credits for about 3 years, and although she didn't give me percentages, she says that her um they they do things a little bit different. She has, she has credits that she holds that she gives out, um, and she runs out every year.
So meaning that they are, they are definitely in demand, and she has seen an increase in funding. OK, all right, thank you. Yes. Are there any other questions
from the committee I have a couple of questions that I thought of during your testimony,
and I apologize, these questions are not actually for you. They're, I'm gonna mention them so that hopefully Representative Cooper can address him when he closes for his bill. I see a couple of, uh, there's a lot of um references
in the bill to an income tax credit, but I don't see where, where it specifies um whether it would be personal income tax or corporate income tax or both. So that might be something um. Representative Cooper could speak to and the other question would be about the grants that the state provides currently to pregnancy help organizations is this credit met to ultimately replace those grants or to supplement those grants, um. So I apologize I pose those questions to you. Those are actually for Representative
Cooper, but seeing no further questions, thank you so much for your testimony. Yes, thank you next person we have signed up to speak for the bill is Vicky Parker. Miss Parker, you are. Welcome to come to the end
of the table. Introduce yourself and you're recognized to present your testimony. Thank
Speaker 73
21:50
you, Chairman, and I really appreciate the opportunity to share with y'all the great work that we do in pregnancy center work. I'm Vicky Parker, board chair for Arkansas Pregnancy Network, founder and
CEO of Options Pregnancy Center here in central Arkansas, as you've heard, uh, pregnancy centers, uh, meet moms and serves moms and dads at a very cool, very critical time in their lives when they need some answers for unplanned pregnancies, these services, as you've heard, scanned from. everything from pregnancy tests, STD test, ultrasounds, all the things that they needed immediately for a healthy moms and healthy babies, uh, those services are, uh, done by a
medical team that uh give those out as you know we don't promote, do or refer for abortion, and we are the sometimes the very first person that gets to share the life inside to that little mom that has not got to see a baby or even realize. How grown and how much that that baby is doing inside and get to see that little tick tick tick that's the heartbeat, uh, before they ever even get to a doctor because now it's roughly around 12 weeks before if they choose
life, it's uh roughly around 12 weeks before the doctors really start wanting the man and of course the earlier intervention into diet and all the things that we helped provide them and guide them and direct them, um, really makes a difference in a. healthy outcome. And so, uh, we give them every chance to choose life, of course, that's what we hope for them to do because we, we know that that is in every way a great outcome for them whether or not that they're choosing to parent or to release for
adoption, whatever it is, we, uh, direct them to adoption agencies and individual adoptions if that's what they choose to do, uh, but we also serve women, uh, beyond that. We, we serve them through parenting. Uh, for both, uh, as you've heard, mama, mom and dad, baby clothes, diapers, uh, all those things that you're thinking, but don't they get wick for that? Well, yes, they do get whipped, but you've got to understand that many times these young moms, they don't know even know how to get there sometimes we're
the first stop for them and since it's not gonna cost him anything to be able to come to us, then we're able to give them that opportunity, uh, and help them out with those first diapers, those first things that's. free to them. Uh, connecting them with community support systems because some of them come from abusive relationships, some are they they're the home life is not great, they may need other intervention that we're able to connect them too because we have
those connections and those resources in the community, so, uh, again we also continue with helping them with our certified life coaches to help them with we want to see them excel and become finished their high school education, finished their college education so that they can have the best life and give their babies the best life as well, just because they're in an unplanned pregnancy does not mean that they cannot have a great life and that they can excel. We have many, many
stories to share about that. All services, as I've said, is at no cost to them and um and and or to the people of the state of Arkansas, uh, through taxes this state through taxes, how we do this is through donations. We do a lot of fundraising. We usually have 2 to 3 big fundraisers that support us, uh, through the year and those donors come and they hear the story from the clients. They hear their story, they see the children and how well and
and they testify to who we are and what We do. So the um Monday handed out sometimes through the grants and things we don't qualify for because we won't refer for abortion because we won't do abortion. There's some foundations that will um that will allow us to apply for monies, but there's not a lot of them, uh, that get to do that so that's not always an opportunity for us, um, it also one part of our mission is that we're a
Christian organization and so we. share Jesus because we know that that is the ultimate healer and director and God and so that is part of our mission sometimes with grants that's not allowed so it does hamper us in that way, calculating your services, whether medical team, medical services, and provi uh we provide in all the material aid certified life coaching we provide upwards of 6500 to $700,000 a year in services that
is absolutely free. to our community. So if you multiply that as you heard earlier some communities are smaller, they don't have as big a budget, uh, and others have larger budgets, but on an average a full service center like that is gonna roughly um hit around those numbers per year so those services are not charged for. The impact to the unborn Arkansan babies and their parents are actually life
changing. The donors of Arkansas support pregnancy centers and are willing and willingly because they see the fruit of that labor by the lives uh that are saved in the in the positive change in their lives. We have donors that have told us that they're excited if this would happen because it would give them the opportunity to give more, um, I had, in fact I had someone yesterday. to answer one of the questions she actually said, oh, I could double mine, Vicky if if we had
that. I'm going like, OK, my brain's calculating and go, oh dear Lord. So 40, 45 to 60 pregnancy centers over the state this literally through the donors, not from the state, but through the donors could free us up to actually do even more impactful, especially with uh all that we battle with now with um the abortion pill and all that that's going on. We don't get the money that on Planned Parenthood and, and
those uh do because it for some reason, uh, we don't qualify, uh, but this would really make a difference in what we do this tax credit uh would serve our mission to continue to freely share Jesus and and be able to fulfill that mission and in closing, if you would grant this tax, uh, credit for pregnancy centers, it would definitely fund uh. all of our, all of our pregnancy centers across the state, whether it's small or whether
it's large, it would fund it and as they said it would go a long ways for us to be the number one pro-life center in the state, uh in uh in the uh state in the union for again now the 5th year, so I wanna thank you for listening. My prayer is that you will, uh, see fit and I know there's a lot of good tax credits that's needed and people need them. I don't think you're gonna find one today or any other day that's gonna be any more life changing than the one that we're that we're speaking about and
have any. Thank you, Ms. Parker, for your testimony. Are there questions from the committee?
Representative Warren, did you have a question? Oh, OK,
alright. Um, well, I think we're past the point where um he's taking questions maybe if you want to ask your question, maybe he could speak to it in
Representative Les Warren
Unverified
29:41
his closing. OK, well, I'll, I'll go ahead. So I'm very much pro-life and uh
my church supports uh pro-life organizations. So right now, uh, contributions to your organizations are treated as charitable contributions, right? So you get to add those in uh to get a tax deduction for people who contribute to you. Yes, they get a tax deduction. OK, so my question, I guess, is I feel like if I'm, I'm Voting for this, then I am
putting you as a higher priority than I am my church, who not only supports pro-life. Uh, missions, but also a lot of other things that My church considers very important. So why Would I put you in a better tax position. Then my church who's supporting all of that. Plus a lot of other things that we believe
The Kingdom needs as well.
Speaker 73
30:56
I understand that and I think honestly that our our churches are uh 501c3s also. We're 501c3 all all pregnancy centers are 501c3, and I think the church would say, well, there's no there's no better place because if death is the end, uh, and the result of not having pregnancy centers, and it is, we know that to be true, then, uh, we would
get behind it too. I really believe that our churches. would be behind
that. Are there any other questions from committee members? I, I've got
one, Ms. Parker, I know you're very involved in sort of the statewide network of pregnancy health organizations. What does that statewide footprint look like in terms of number of locations and sort of geographic breakdown, how many of these organizations do we have across the state and do they
cover all of the counties or all of the, all the regions,
Speaker 73
31:54
right? Not every single county as they should have a pregnancy center we have like in my area, we have one in in North Pulas. We have one in at Lone Oak we have one in White County. White County has 2 pregnancy centers, but there are some counties, especially toward the east who have no pregnancy centers, so we do have that, but we're 45 to 60 depending on if you're counting or actual organizations, mine is an actual organization so it has 4 different locations, but some
pregnancy centers are just one. So if you look at that, then, then they're upwards of 60 like what Cheri stated, but, uh, the. himself for 45. So we covered the entire state. We're just not in every single county of the state. Thank you for that.
I, I noticed on here the bill also includes as part of the, the definition for pregnancy help groups. It, it includes Um Adoption agencies, do you, do you, do you have any idea how
many adoption type entities or are involved in, in your network.
Speaker 73
33:02
gonna just off the top of my head of what we refer to there's gonna be about 5 in the state that uh that we know of and refer to, um, and then, uh, it also, I think says social services. I'm not honestly, truthfully, I don't know what social services there would be that is. pregnancy help. I'm not sure what that would be. I've never been really clear on that, but,
but I pray true pregnancy center is like what we've described to you that is a um a building or a mobile unit where the girls come to get all of those services and um and it all happens there and then we refer
Speaker 77
33:40
out to the adoption agencies. All right. Are there any other questions from members of
the committee? Seeing none, uh, thank you for your testimony, Ms. Parker. Thank you. Uh, we have one more time to speak
before we do that, I just want to remind the
members this is a bill that does have a fiscal impact. We are, uh, we've, we've not been taking motions to vote on bills that have a fiscal impact until we get a little bit further along and have a chance to hear all the bills and have a clearer picture on the budget situation, so, um, with that reminder, we have one more person signed up to speak in favor of the bill. That's Christy Renfro. Christie, are you here? All right, you're recognized to come to the end of the table and introduce yourself, tell us who you're with, and you can proceed
Christy Renfro
Unverified
34:28
with your testimony. Thank you chair and committee. My name is Christy Renfro and I represent the Arkansas Pregnancy Network as a board member. I'm also the executive director of Choice Care in Russellville, and I've been with that organization for about 23 years now. I'm here today to speak in favor of HB 1404. I'm sure that you all know our legislators and the governor's office have been taking steps to address the maternal mortality issue that our state has been facing. For decades now, pregnancy help organizations have been on the
front lines of investing in moms. Dads and babies and their their whole family really, um, and in communities across our state, and we deeply understand the need to address this issue as well. We're aware of the needs within our communities and challenges that these families face when they're in an unexpected situation. We know how to best serve the families in order to best establish a culture of life, especially now that we're in a post row post Dos culture. Our mission to help create strong, healthy families.
That's, that's what we are for. We're now looking at an increased demand for the services that we offer. This increased demand presents a wonderful opportunity for a culture of life to be fostered at the local level. Uh, to better meet this need, which I also think may answer one of your questions about the statewide coverage. The Arkansas Pregnancy Network has a dedicated telehealthcare line that is a statewide covering line. That, uh, moms and dads, so we actually got calls from moms and
dads yesterday. They call in and they receive. Health care from medical providers, registered nurses, we have a medical director also. They received that care before they make a decision to travel out of state for an abortion or to order pills online, and what happens is they receive that care, the service, the, the quick service to care, and then they are referred to the closest pregnancy clinic in their area. So covering the whole entire state telehealthcare is now doing that through the Arkansas Pregnancy Network.
This pregnancy help organization tax credit is establishing a policy that's been proven across the country in states like Mississippi and Missouri. Missouri passed their tax credit in 2006 and their pregnancy organizations and those involved in the pro-life work there have shared that the tax credit program is their single best fundraising tool to successfully pursue and accomplish their mission. By bringing this uh PHO tax credit to Arkansas, you will be empowering the pregnancy organizations to better serve families in our communities from a local level.
Furthering a culture of life and essentially deeply addressing the maternal mortality rate, essentially, shifting our culture further toward life will impact generations of people across our state. By bringing this to the local level, local community members are able to invest in and support their peers and community members. Moms, dads, and babies are being served currently, but we know that we can serve them in even greater capacity, and we need a stronger foundation of funding to do so. In a post post for a world we're now seeing things like abortion
amendments being proposed in states across our country, and we've seen that battle here in Arkansas. In light of that, we have to be invested in the culture of creating this life based on the sanctity of human life, but the value of every, of every life and our donor base is one of the strongest ways to accomplish that. Many of our donors have a story that is similar to the stories that we hear from our families daily. And these donors ask me how can my support be multiplied. How can my donation essentially
leave a legacy and change a generation in families that I will never meet. It's very important to a donor leaving a legacy and changing the culture in the community that they are invested in is an honor and a privilege. They know that they are serving, and that to a donor is an important component to their personal ministry. So how do we address the needs of this, of this family that's walked in our door. How do we do that? In a very specific and unique manner. Every mom is different, every dad is different, every family is unique.
We've been doing this work and we'll continue to do this work, even as the needs continue to exponentially increase. by exponentially increase the numbers that we are looking at at this point, not including travel out of state and travel out of state would include Kansas, Illinois and Missouri now. We're looking at 50 to 6000 abortions from online pill ordering at this, at this moment. Our numbers had been um right around 3000 mark and that has
almost doubled with the online ordering. This tax credit is what Arkansas needs. It's what the moms and babies of our state need, and we're asking for your help to do it better, to, to help us do it, to meet the demand of the services as they increase. Um, with that, I ask that you support this bill. It's a good bill that will further strengthen the foundation of the pregnancy help organizations across our state, and I can take questions. All right, thank you for your testimony. Are there questions from members of the committee?
OK, uh, I've got one, Ms. Remer, you referenced um the credits in Mississippi and Missouri. It sounds like you're familiar with those. Do you know if, if either of those states have a cap on the amount of tax money that can go toward the credit or if they're if they're unlimited, do you
Christy Renfro
Unverified
40:00
know? They are, I'm most familiar with Missouri, so I can speak to it a little more clearly, but so Missouri started at 50%. They increased to 70%. They've been sitting at 70% for roughly
10 years. I wanna say, uh, this year they have removed the cap in there at 100%. So, and, and um In doing that, they are. Empowering the pregnancy clinics because of the legislation that Missouri just passed, um, to, to provide abortions across their state. So Missouri's is 100% dollar for
dollar income tax credit. I'm not sure if that has passed yet, but that's what they're
Christy Renfro
Unverified
40:38
going for, yes. Yes, sir. And do you know if there's
a limit on the overall amount that can be claimed. Like I guess another way to word it would be if every citizen, obviously that's not gonna be the case, but if every citizen availed themselves of the credit, is there a limit to the overall amount of money that could be claimed toward that particular purpose. I'm not
Speaker 94
41:02
familiar with that, um, at this time. Yeah, that's OK. I was
just, I was just curious. OK, thank you. Um, any other questions from the committee? OK, seeing none, thank you for your testimony. Thank you.
Um, is there anyone else in the room signed up to speak. I don't have anyone else on the list.
OK, um, We have no further speakers. Representative Cooper, would you like to
Representative Cameron Cooper
Unverified
41:33
close for your bill? Thank you, Mr. Chair. I'll, I'll try to answer a few of these questions that were posed, um, I know that Missouri. Previously their cap was $2 million and so the uh the bill that I had last session
reflected that it was modeled after the build that Missouri had, um, is a little more convoluted with, with DFA and DHS being involved, um to track those credits and track the cap, um, that's why we didn't include it in this bill. This bill's uh a lot simpler than that one was, but um another question asked was on social service agencies. So that the definition of a pregnancy help organization, um, is already in code, um.
With the grants that the state provides for these organizations. So we're trying to stay consistent with that definition, that definition includes social service agencies. You had a question about what those may be. Some examples are ABA charities, Lutheran Social Services and Catholic charities of Arkansas and some of the services that they provide would be uh material services, baby clothes, furniture, diapers, uh, education on parenting classes, sexual risk avoidance, education, and spiritual. counseling, um,
Another question, um. was regarding if uh Corporate Donations would be included in this. I, I think the intent of this bill is for individual taxpayer donations, um, pregnancy help organizations, uh, the amount of, of donations they get from, from corporate entities is very low. It's about 2% of the deductions they receive. Um, however, I'm willing to work with any member of this committee. I know you're not taking a vote today. It'll be
later on in the session, uh, when we see how the budget looks and we see if there's any wiggle room or any cushion for any tax credits at all, um, if there, if there are, then I'm very willing to work with every member of this committee on any changes to this bill that that you may want to make, um, if you, if you feel that it's worthy to move forward if there's any, any room for tax credits. I'd be willing to work with you all on that. Another thing to consider is um the savings to the state that these organizations provide, I mean, uh look at at at Medicaid
dollars, um, these organizations are providing services for for people. Many of them are people who are her lower income and in need, and if they're receiving these services through these organizations, then the taxpayers are not footing the bill through Medicaid for these services that they're providing. So as I said, I'm very willing to work with every member of this committee to make this bill better, to. any concerns you have and um I'm closed for the bill and I appreciate your time today. All right. Thank you, Representative Cooper, for
bringing your bill to the committee. Colleagues, we have, I believe one more bill we're going to hear today that's uh Chairman Kavanaugh has a bill. 14438 Representative Kavanaugh, you um are welcome to introduce yourself for the
record and present your bill when you're ready. Thank you, Mr. Chair. Thank you committee.
Representative Frances Cavenaugh
Unverified
44:55
Chair is not quite working, but we're OK. This bill is 1438 and um it is a property tax bill, um, and I'm bringing this forward so that we can actually have a discussion about property taxes. If you're like me, most of my constituents, they don't really complain to me about income tax. What they complain about is property tax. And how do we go away from property tax as a state. Um, their biggest complaint, and
be honestly, it's my complaint also is, why do I keep paying taxes on something I already own. So it's like I never own anything. I just have it rented because I keep paying property taxes. Well, we all know to get rid of property taxes, it's gonna take a constitutional amendment. Um, to get rid of it. Um, my bill actually has a workaround of that for the property taxes, and it is actually going to try to be a tax credit to those who pay
their property taxes. Um, when you look at it, it actually, we have to think about property taxes and what it funds to as a state. So if we think about what the property taxes are going to the counties and most of it in most people's area are going to schools, so we have to think about if we just do away with property taxes, then we're gonna be gutting. Our public schools and none of us want that to happen. So I came up with an idea that what if we as a state said individuals, you pay your property taxes to the counties and they can go where they need
to be in the counties and also in the schools, but when you file your taxes, we're gonna give you a tax credit for that, $1 for dollar. So if you pay $1000 in property taxes, you're gonna get $1000 back. And if you owe less money than the 1000, you're gonna get it back. So it's actually money they can put back in their pocket. And that's what my bill sets the time. Since the time, the framework out to do is to actually to find a way to get some of this tax dollars back to some people in Arkansas. Um, I actually have it
set at, um, people over 65 and started there because usually those are uh Arkansans on limited income, fixed incomes, and property tax seems to hurt them the most. And that's what my question my bill does and so I thought we'd open it up for discussion about how You know, we do property tax in the state of Arkansas. And I'd be glad to take any questions.
Alright, thank you for that, Representative Kavanaugh. Are there any questions from members of the committee, Representative
McGrew, you're recognized for a question. Thank you, Chairman, and Representative
Representative Richard McGrew
Unverified
47:33
Kavanaugh, I'm a huge fan of decreasing property tax. I have a lot of property, uh, but I, I would look at this as, as an Arkansan in saying, and I like the idea of a 65 and above. But, but I have my primary residence in my, in my family farm that's that's my property because it how to explain it because it's my property. I have other property that's income generating property, so there's
some way we could fix this. I'm all for exactly what you're doing, but for someone who has income producing property, if this is laid down now, would it apply to them, for instance, not only can I take the credit on my home, I could also take the credit on a You know, 60 unit apartment complex I have. No, this
Representative Frances Cavenaugh
Unverified
48:18
actually, if you look down on page one, and I think it's line 32. It talks about the um taxpayers' homestead. So it's gonna be on your homestead. OK. OK, thank you.
Representative Johnny Rye
Unverified
48:34
Representative Rye, you're recognized for a question. Yes, sir. Thank you, Mr. Chairman. Representative, let me ask you this, is there
any type of income, uh. You know, like a cutoff, in other words, you make too much money, does this cover that? It's not in the bill,
Representative Frances Cavenaugh
Unverified
48:50
but that is something that we talked about, that is something that we could actually do. So if you make a certain amount of income, it wouldn't apply to you. So that has been looked at
Representative Johnny Rye
Unverified
48:59
also, yes, but it's, it's actually is if it goes through now, there's no income. Le
Representative Frances Cavenaugh
Unverified
49:07
No, and if you'll look at the physical impact, it's, it's a, it's, it's a large physical impact to the state and that's why we're, we're discussing it because I think it's something we need to look at, um, as a state to figure out how we can reduce some property taxes, um, and so that's what this bill really does is open up that discussion, but I think it's like $182 million hit, maybe a $202 million hit, so it's not, it's a substantial hit to the budget. Thank you, Representative Kevin. Thank you, Mr. Chairman.
Representative Lindstrom, did you have a question? OK. Um,
Representative Lynch, you're recognized for a question. So, um, is there a
Representative Roger D. Lynch
Unverified
49:49
limit in the bill, which I don't think there is, but if my property tax is 1500 and the other guys is 10,000. Do we both get the, the full amount of credit. Representative Lunstrom, you recognize. Thank you. And this
Representative Robin Lundstrum
Unverified
50:11
may not be very artfully asked. I like where you're going with this. My concern is that while we're helping one group, another group, their taxes are gonna go up, um, has there been any discussion about how to maybe replace it completely, property taxes and just go with a flat tax or a sales tax increase so that because what's this is gonna do to rental property, they already pay the property tax. It's added to their rent. So while the homestead. would have the deduction the.
In the rental market, that's just gonna keep going up to replace that cost. So I know you've been studying this for a long time. Can you give us some insight or your thoughts on how we could do this a little bit differently. I realized this is a start, right, but much like a balloon, you press one end, the other end goes up, right? And I think as a state, what we have to do is
Representative Frances Cavenaugh
Unverified
51:00
have these conversations is we have to look and we have to say if we reduce this because we all know we have to have a certain amount of money to be able to function as a state with nobody likes taxes, but we do have to have revenue.
coming in to pay for needed services. So we have to kind of look at a state as what, what are we willing to look at? Are we willing to look at a flat tax that could make this possible for property taxes? Are we willing to say that we're gonna leave corporate and income tax where they're at and concentrate on property taxes, and that is a conversation I think as a state we need to have and as I stated before, My most and y'all, you may be very similar, my calls come from property taxes. People are, are just upset and it's not just
individuals, it's businesses. Um, be honest with you, if you'll remember when we had, I think it's when I was in my first term, we had a tax reform task force and then that tax reform task force, one of the first things that ASA taught us to do was to get rid of the taxes on inventory. The property taxes on, you know, real, um, um, the property tax because that's a, a hit to businesses and then it can be a determin and it, it can be quite hefty for businesses, but we've never been able to find a way. To get away from that because it
is such a hit to the counties and to the schools. And so I think that's what we have to find. So it, when you talk about property taxes, there's a lot of moving parts to it. It's not just saying that I'm gonna give a tax credit to somebody and it, it just comes off the general revenue. That's not what happens. We know with property taxes, it funds a lot of different things and so we need to, we have to find a way as a state to start addressing those
other funding mechanisms that might allow us to get. away from property taxes, in my opinion.
Representative Wooton, your record I'm, I'm sorry, that's OK. Did you have
Representative Jim Wooten
Unverified
53:00
a follow up. Representative Wooten. Thank you Mr. Chairman. Representative Kavanaugh, do you know the dollar amount that schools receive from the property tax. Off the top of my head, I don't, but
Representative Frances Cavenaugh
Unverified
53:10
I know that with this particular bill, the way it's drafted, they would still continue to get their money. OK,
Representative Jim Wooten
Unverified
53:20
let me share the reason I asked the question because For the committees, uh, Advice or evaluating. I agree with what you're trying to do, totally. The uh school cases Lakeview and others that involve the formula will we will never have equity in education as long as we have the property tax involved in
Funding education from a local standpoint because you can't evaluate the property value in Benton County to the property value in Newton County. Same way in White County, you can't compare the property values in White County to what's in Pulaski County and we made a proposal or I had a proposal several years ago when I finally, when I chaired the school of Finance commission as a result of the first
case that, that, uh took the public schools completely out of the property tax business and then at that point in time, we could have done it for a penny or a pen and a half cent increase in the sales tax, but it would have gotten The schools, how the property tax business and it would probably have resulted in a property tax reduction like uh Representative Kavanaugh is attempting to do and, and what, what, what it would end up with
that people who do not have children in school. or opposed to property tax, and particularly those over 65 years old. It would have left the funding of the property tax to the counties and cities to provide police, fire protection, road development in that type of thing. So this, this is something that needs to be done, needs to be looked at, and this is, this is a good approach. Thank you.
Representative Way, you're recognized. Thank you, Mr. Chair. Question and then a comment on the question side so
Representative Carlton Wing
Unverified
55:36
I just want to make sure I understood. So under this proposal, then um all of the responsibilities that would typically go locally would, would be paid for and covered and then it would, the state would then bear the burden of what was going on locally that, OK, uh, comment. I love. Being able to uh I love the fact
that you are bringing this to our attention so that we can discuss these kind of general big umbrella philosophical matters on taxation. I, I wish it wasn't just relegated to the House state and local taxation Committee, but that I wish I wish families would discuss things like this as they are, you know, raising their children and talking about things like this to just think about all the things that we have discussed at this table today, what We have learned about and, and, and the philosophy behind
taxation, I, I think it's, I just want to commend you for bringing that up so that we can have these kinds of discussions so that we can come to a better solution that that makes us much more fiscally responsible and financially profitable here in the states. So thank you for that.
Representative Frances Cavenaugh
Unverified
56:46
And I think that's that's the benefit of hearing bills even though we might not take a vote on them, is that we're able to hear ideas and things that how it might affect the state and and what one bill in my opinion. you may do is spur somebody else to think of another bill and maybe it improves it and maybe
there's a way that we can actually address some of these issues and moving forward as a state that's got to be our goal at
Speaker 122
57:17
some point. All right, Representative McNair. Thank you, Mr. Chair. Uh, I, I'm all for whatever temporary help that we can do, uh, and this discussion is, should have been made years ago, uh, 11 comment, uh, Senator Crowe and I had Drafted
An amendment similar to what you're asking for that age, that age limit. Uh, but we never did file when we drafted and then We discussed it and I think yesterday he uh he requested that we put it into an interim study, which is what you're talking about and I, we absolutely need to do, uh, I, I'm like you, I get and tax credits, I mean anything that we can do to help. But you know, when it, when
you're working and producing, I still think property taxes are unfair. But you can kind of pay them when you get to that level. And not everybody, but some people, I, I'm contacted, they say they're on fixed income. They make it fine until it comes tax time and insurance time. So I appreciate it and I, I do hope through this interim study request that we can go further, but I'm, I'm game for whatever we can do if it'll help
Representative Frances Cavenaugh
Unverified
58:32
temporarily too through the conversations with Senator Crow, we've actually
talked about how if you put a uh income limit on a bill similar to mine and you say that the money actually is gonna come out of the homestead. Credit money then that fund would actually be able to cover that expense in a couple of years. So that's another idea that we have to think about instead of and we're all for giving homestead credits so that gives people a break on their, on their property taxes, but that's another way to think about it. Is it a way that we can think about that we use that money that's being generated for
that that on homesteads we can start doing more than just the $100 that we can look at doing something bigger. And so that, that's, that's part. the conversation. So I think it's just thinking outside the box and how we address this problem going forward. All
right, I've got a couple of questions, Representative Kavanaugh. So under your bill,
what, what would happen if somebody's property tax payment exceeds their income tax liability. Would they just get a check back from the state? Is that how that would work? OK.
Um, so one concern that I have, um, with this proposal that maybe you can speak to is. I think to some extent we're delegating the state's liability on this measure. To local governments because let's say this bill were to pass, the fiscal impact right now would be, you know, what you see on your green sheet there, but if local governments then were to raise their property taxes at a future date, then
they would be also increasing our. Liability without us having any control over it, Does that
give you any concern? Liability without us having any control over it. Does that give you any
Representative Frances Cavenaugh
Unverified
1:00:26
concerns me when um we raise taxes, to be honest with you, at any level, be honest, whether it's local, state, or, you know, or federal, but I think that's part of the conversation is so do we, when we look at drafting this, do we say that when we're going to pass something like this right here is all we're gonna do. The max we're gonna do is based on
what your current rate is. I mean, do we dress it like that? The same thing is if they ever have one to actually go down, I don't know if that's ever happened, to be honest with you, but if that were to happen, um, then we reduce it. So those are all, again, that's a very, when we start talking about taxes and that's why I like doing what we're doing. It's such moving parts to this tax code and what happens if you do this, you do that. Was this an unintended consequence and so that's why I think it's important we think about things like that. So we
understand if we did something like this, the obligation could go up, it could. And we practicality we know most likely it will go up, but it could go down too, but which is probably never gonna
happen. Do you think we would actually be in some ways incentivizing local governments to raise their rates because they knew the state was going to be filling that void. I think if
Representative Frances Cavenaugh
Unverified
1:01:39
you narrow this very strictly about certain people and certain income that doesn't give them
the incentive because then the people that are
still paying the property taxes local are still
going to want to vote against those property
taxes. OK, um, one more question I have, and I, I hear from seniors as well who say, can you, can you do something to help on property taxes, um. But uh I guess to piggyback on something that Representative Lundstrom pointed out, you know, when you
eliminate the tax liability for one group of people, the need for that tax revenue doesn't go away, it just gets shifted to a different subset of people.
You know, someone could make the argument that, you know, yes, obviously, um there's a lot of seniors that live on fixed income and a very tight budget. There's a lot of seniors who've had, you know, they've obviously had their whole life to accumulate wealth and are doing just fine, um, what, you know, what about Young families who are struggling to raise children and afford childcare and all of those sorts of things have. Can you walk me through how you balance those considerations for
Representative Frances Cavenaugh
Unverified
1:02:49
different age groups. Well, I went to elderly because most in my district, I have a lot of poor elderly people, be honest
with you, and I get most of those phone calls and a lot of our elders unfortunately in the state of Arkansas are in poverty level and this property tax, as it's been brought out earlier in the conversation is a big hit to them and it's hard for them to pay that. And to be honest with you, I've had phone calls on seniors that can't pay their property on their homestead and they have looking at losing it and so
that, that was the catalyst on that, uh, come from, but I understand that there's all kinds of groups that we could look at. That's why this conversation again is very important to look at where do we need to look at where we give relief to, how do we fix that? Can we get away from property tax? How, how does that look? What do, what do we do if we do something like that. And I think that's why that's. Important. All right.
Representative Rye, you're recognized for a question. Thank you, Mr. Chairman.
Representative Johnny Rye
Unverified
1:03:46
I believe that this is possible. I really do, uh.
A couple $100 million. To do what you're trying to do. The main thing is, is do we have it in the budget to cover that much. But I really believe this is, this is good right here. Well, I believe it's something we
Representative Frances Cavenaugh
Unverified
1:04:06
need to look at. Is this a form that it needs to be finally in? Probably not, but it, it, it, it's a catalyst. It could be
a stepping stone of what we can make a better, a better deal, a a better bill, how we could address it. Um.
Like I said before, property taxes, I'm sure most of us is the one that gets the most phone calls on, um, Especially when it gets that time to pay property tax or it could be in my when we have to assess for the property, you begin to really uh get those phone calls, um, but as a state, again, we need to think about that, how we can address property tax. What does it look like? Um, what other funding mechanisms do we have if we're going to take away that. But let me also state. And I've always been a firm believer of this, and if y'all listened to me and budget, you,
this is not gonna surprise you when we start cutting taxes of any form we have to cut our spending. They have to go hand in hand. You cannot cut cast taxes and not cut spending. It does not work. And so as we move forward as a state, we have to address the spending in the state. And I think that's important too, because as we cut Taxes and we decide that we're gonna do things to get more
money back into Arkansan's hands, that's fine. But on the state level, We're supposed to have a balanced budget, and that might mean that we have to make tough choices that we're gonna have to cut spending this, this, and this because we think it's more important that the taxpayers use their money than to have it in a state program. There's not always been a lot of appetite for that because everybody's got a pet project. Everybody's got something in their district, but I think as the state going forward, those are things that we have to make tough decisions on.
Representative Ryan, go ahead with your, with your other question
Representative Johnny Rye
Unverified
1:06:02
if you'd like. You know, I remember back in 1999, there was a revolt. And I
know you remember this, Mr. Wotton, and they were gonna replace the whole property tax with, I think it was 1.86 cents. That wasn't gonna cover it. It was gonna take somewhere like 4 cents on a dollar. But you know, Mr. Wotton, what I, I worry about is if you try to cut all of this, you know,
it's You're talking about maybe 1415, 16% sales tax on the local level, which I don't think people could handle at all. But I do like what she's working on here. If I,
Representative Jim Wooten
Unverified
1:06:43
if I'm sure you recognize and I agree, and, and I made the point to the committee when we started
that, that we have to, if you're either gonna have to raise taxes. or cut spending in the, in, in the best way from our
standpoint, politically and otherwise is to cut spending. And I agree with Representative Kavanaugh, if you cut taxes. Then you're going to have to, you, you need to be prepared. I, and I've been through, uh, when, when you had to tell the agency, you cut your budget 10% or you cut your budget 15, 20%. And when I was a trooper we had to sit on the side of the road. I'd drive a block from my house. I lived out in the
country. I drive a block from my house and I sat there all day and then I went home because we couldn't drive. We couldn't, we didn't have the money to buy the gas. because we were in the tough economic times, but my question is, and Representative Roy, you may know this too, but my question is, we talk about capping, you know, the, the, the amount of money because of local. tax and property tax increase in
the, in the true that if they raise their taxes, they can only collect 10% of the increase, the next, the next billing cycle. So we could do the same thing with this, they're saying that the credit couldn't increase more than 10% per year if a local municipality. raise their local tax. Representative Lunstrom's nodding her head. It
may be something you want to connect
with Representative Kavanaugh about on the bill that
Representative Jim Wooten
Unverified
1:08:36
would be good. I just wanted to clarify that the 10% was the correct amount of money.
Representative Frances Cavenaugh
Unverified
1:08:42
It's the, it's the amount that they can't make your assessment go up
more than 10% because they consider that unless, and I have a little bill coming to address this unless it's substantial improvement. So that's,
that's the definition that my other bills working. is the definition of substantial improvement, that's good. We're on the same page.
Thank you. All right, Representative Rye, you're recognized again.
Representative Johnny Rye
Unverified
1:09:11
Mr. Wotton, what you were speaking about on that 10%, that's a rollback. On the taxes, but now we got to remember that the 1st 25 meals maintenance and operation, you can't roll back on that. Yes, sir. Thank you, David. All
right, are there any other questions from committee members? OK. I, I don't have
anyone on the sheet here signed up to
speak for or against the bill. Is there anyone in the room here to speak either for or against this bill. OK, seeing nobody, um, Representative Kavanaugh,
would you like to close for your bill, committee,
Representative Frances Cavenaugh
Unverified
1:09:49
thank you for listening to the bill. Thank you for the conversation about um something I think it's important for us as
a state to talk about and to have open conversations about it of how we can address this moving forward. And with that,
I appreciate it and I'm closed. Thank you.
All right. Thank you, Representative Kavanaugh for bringing that bill to the committee. Are there any other members here today that wish
to present a bill this morning. That's on the agenda. OK, seeing none, we are adjourned.
Agenda
REGULAR AGENDA
HB1203 Underwood TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLECT TAXES.
HB1404 C. Cooper TO CREATE A TAX CREDIT FOR CONTRIBUTIONS TO A PREGNANCY HELP ORGANIZATION.
HB1438 Cavenaugh TO CREATE AN INCOME TAX CREDIT FOR TAXPAYERS SIXTY-FIVE AND OLDER IN AN AMOUNT EQUAL TO THE TAXPAYER'S PROPERTY TAX PAYMENT ON A HOMESTEAD.
HB1444 Pilkington TO AMEND THE SALES AND USE TAX EXEMPTION FOR DATA CENTERS.
HB1464 Vaught TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS FOR AND REPAIR OF AGRICULTURAL EQUIPMENT AND MACHINERY.
HB1469 Beaty Jr. TO CREATE THE BROADBAND EXPANSION AND EFFICIENCY ACT; AND TO CREATE A SALES AND USE TAX EXEMPTION FOR MACHINERY AND EQUIPMENT USED IN PRODUCING BROADBAND COMMUNICATIONS SERVICES.
HB1472 Beaty Jr. TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS PURCHASED TO REPAIR AGRICULTURAL EQUIPMENT AND MACHINERY AND TIMBER EQUIPMENT AND MACHINERY AND PARTS AND SERVICES PURCHASED TO REPAIR A GRAIN BIN.
HB1485 K. Brown TO CREATE A SALES AND USE TAX EXEMPTION FOR SALES TO CERTAIN ORGANIZATIONS THAT SUPPORT VETERANS' FACILITIES.
HB1497 Painter TO ADD THE DEPARTMENT OF THE MILITARY TO THE LIST OF CLAIMANT AGENCIES FOR PURPOSES OF THE SETOFF AGAINST STATE TAX REFUNDS.
HB1500 Beaty Jr. TO ENHANCE ECONOMIC COMPETITIVENESS BY REPEALING THE THROWBACK RULE.
HB1501 Beaty Jr. TO ADOPT FEDERAL INCOME TAX LAW REGARDING DEPRECIATION AND THE EXPENSING OF PROPERTY; AND TO INCREASE THE AMOUNT ALLOWED FOR THE EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS TO THE AMOUNT ALLOWED UNDER FEDERAL LAW.
HB1520 Cavenaugh TO REQUIRE THE SECRETARY OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO RESPOND TO A WRITTEN REQUEST FOR A LEGAL OPINION WITHIN A CERTAIN AMOUNT OF TIME.
HB1521 Cavenaugh TO REPEAL CERTAIN UNUSED, UNDERUSED, OR UNFUNDED TAX INCENTIVES.
HB1534 Schulz TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT.
HB1538 Ray TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCOME TAX DEDUCTION; AND TO INCREASE THE CARRY-FORWARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION.
HB1540 J. Mayberry TO AMEND THE INCOME TAX CREDIT AND THE INCOME TAX DEDUCTION RELATED TO MAINTAINING, SUPPORTING, AND CARING FOR AN INDIVIDUAL WITH A DISABILITY.
HB1116 Ray TO CREATE THE REMOTE AND MOBILE WORK MODERNIZATION AND COMPETITIVENESS ACT; AND TO PROVIDE INCOME TAX AND WITHHOLDING EXEMPTIONS RELATED TO CERTAIN REMOTE AND MOBILE EMPLOYEES AND NONRESIDENTS.
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — REVENUE & TAXATION- HOUSE, Feb 27, 2025 | Agenda | 3 | Official source ↗ |
Speakers
Representative David Ray Chair
Unverified
Representative Bart Schulz
Unverified
Representative Johnny Rye
Unverified
Speaker 11
Representative Cameron Cooper
Unverified
Speaker 30
Representative Roger D. Lynch
Unverified
Speaker 41
Speaker 44
Representative Carlton Wing
Unverified
Representative Sonia Eubanks Barker
Unverified
Chair
Unverified
Speaker 63
Representative Mindy McAlindon
Unverified
Speaker 73
Speaker 77
Representative Les Warren
Unverified
Speaker 75
Christy Renfro
Unverified
Speaker 94
Representative Frances Cavenaugh
Unverified
Representative Richard McGrew
Unverified
Representative Robin Lundstrum
Unverified
Representative Jim Wooten
Unverified
Speaker 122