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Lawmakers to tackle bingo tax controversy Tuesday, Sep 16, 2008 Arkansas News Bureau LITTLE ROCK - At the first of two hearings scheduled this week and next at the Capitol, lawmakers Thursday will begin evaluating a controversial state bingo tax that opponents say cuts into proceeds that should being going to charity. The House and Senate revenue and taxation committees on Thursday will consider a proposal Rep. Tracy Pennartz, D-Fort Smith, that would abolish the tax completely. On Sept. 24, the Joint Performance Review Committee will hold a public hearing to hear comments from small bingo operators across the state who are upset with the tax. The tax generated $1.1 million during the last financial year, but the State Department of Finance and Administration used $600,000 to fund the five man divisions that monitored bingo operations in the state. "For months in Arkansas Legislative Council, both Rep. (Rick) Green of Van Buren and I have been watching the amount of money coming in on that bingo tax and that's money that would have been spent in communities across the state but now is going into state general revenues," said Pennartz, who is organizing the Sept. 24 hearing. Rep. Shirley Walter, R-Greenwood, has proposed to eliminate the tax as well. She also wants to look at the licensing procedures and the possibility of eliminating the requirement that charities and other organizations buy the bingo cards used in their games from a licensed Arkansas distributor. She said that requirement is costing smaller operators too much money. Bingo and raffles were viewed as constitutionally banned lotteries - some church and other groups still ran the games - until voters in 2006 approved a constitutional amendment authorizing recognized organizations to conduct the games for charitable purposes. Operators, who claim the tax is excessive and cuts into proceeds that should be going to charity, also argue that bingo games can be monitored locally and that a new state division to do so is unnecessary. |
