A new, taxing idea rocks

COURTESY
MUG MAYLON T. RICE, Candidate for State Rep. District 85.
COURTESY MUG MAYLON T. RICE, Candidate for State Rep. District 85.

Many times, we as Arkansans, tend to forget: Arkansas has a citizen legislature.

We do not, in Arkansas, have a professional legislature set up with attorneys, academics, think-tank operatives and lobbyists telling us all the time what is needed to make our state a better place to live, work and play.

Or do we?

We have, by the state Constitution (and thankfully a rich history of seeing this done) a citizen-led legislature.

Sometimes it is the average citizen that has the best idea how to "run" state government.

One of those new ideas recently came from the most recent session of the Silver-Haired Legislature.

The Silver-Haired Legislature is a mock legislative session, sponsored by the Arkansas Area Agencies on Aging. It met Aug. 17-18 down in Little Rock, at the state Capitol, just like the real Arkansas Legislature, and discussed issues important to senior citizens and Arkansas.

There were no million-dollar campaigns to serve on this Silver-Haired legislative session. There were no doubt some areas in our state with great competition for the 100 open seats.

At least one bill, sponsored by Billie Yates of Farmington, seems to have "legs," as our solons are apt to say for a piece of legislative action that might -- just might -- become a law.

That issue involves two major forces in Arkansas, taxes and the elderly.

The 100 members of the Silver-Haired Legislature (one person from each county and then 25 more at-large delegates) thought enough of the proposal from Yates to approve the bill and made the proposal one that will hopefully gain a second and more serious look from the real legislature in 2017.

The proposal, plain and simple, would freeze ALL tax rates only on the primary homestead of the owner at age 65, until the property is transferred, sold or death of the homesteader occurs.

Currently, there is a freezing of the property taxes, but not a freezing of the millage of the schools and other taxing entities.

In other words, if the county property tax is 2.0 mills and the school millage is 24.0 mills and the schools ask for and receive voter approval for another 2.0 mills -- the elderly taxpayer must pay the extra two mills.

Under this proposal, ALL the mileages would be frozen -- in the example, property tax at 2.0 mills and school millage at 24.0 mills, not 26.0 mills -- until the homesteader dies, sells the property or relinquishes the homestead exemption.

At the outset, school districts and others who have the privilege to raise and lower millage rates (i.e. cities, libraries, school districts, levee districts, and improvement districts and others) might not like this bill.

But I can see enormous benefits to Arkansas and our senior citizens.

This bill can help protect the aging population in Arkansas on a fixed income, i.e. those on Social Security and Medicaid. It can also promote "growing" the retirement community in Arkansas. More people would possibly retire here to see that property tax rates in our state can indeed be frozen at a rate when they are 65 or older and ask for the exemption on their primary homestead.

This would only apply to their home, not a farm, a plantation, or a business -- just their home domicile.

The tax rates would be automatically adjusted to current rates when the home is sold, transferred to another family member or given to another family member or friend in a last will and testament.

Senior citizens will continue to pay the frozen property tax and millage rates as established upon their 65th birthday or the date they proclaim the homestead exemption for their property.

And as always, they will pay all the sales and use taxes the state and its communities charge upon goods and services at the local level.

Challenge your legislators to look at this proposal: It is an idea that might just help Arkansas grow.

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Maylon Rice is a former journalist who worked for several northwest Arkansas publications. He can be reached via email at [email protected]. The opinions expressed are those of the author.

Editorial on 09/28/2016