Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to the Arkansas
                                                  Constitution.
 State of Arkansas
 93rd General Assembly
 Regular Session, 2021                                                                       HJR 1004
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 By: Representative S. Meeks
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                               HOUSE JOINT RESOLUTION
                AN AMENDMENT TO THE ARKANSAS CONSTITUTION CONCERNING
                THE TAXATION OF PERSONAL PROPERTY AND REAL PROPERTY
                IN THE STATE OF ARKANSAS; AUTHORIZING THE GENERAL
                ASSEMBLY TO REDUCE OR ELIMINATE THE TAXATION OF
                PERSONAL PROPERTY; ALLOWING THE GENERAL ASSEMBLY TO
                REDUCE OR ELIMINATE THE TAXATION OF PERSONAL PROPERTY
                BY LAW AND TO CREATE EXEMPTIONS FOR THE TAXATION OF
                PERSONAL PROPERTY; REQUIRING THE GENERAL ASSEMBLY TO
                PROVIDE BY LAW ON OR BEFORE JANUARY 1, 2047, THAT NO
                TAX SHALL BE LEVIED ON PERSONAL PROPERTY; REPEALING
                THE REQUIREMENT THAT PERSONAL PROPERTY AND REAL
                PROPERTY BE TAXED AT AN EQUAL RATE; AND AMENDING
                ARKANSAS CONSTITUTION, AMENDMENTS 30 AND 38, T0
                PROVIDE THAT TAXES FOR THE PURPOSES OF THE AMENDMENTS
                MAY BE LEVIED ON REAL PROPERTY, PERSONAL PROPERTY, OR
                BOTH REAL AND PERSONAL PROPERTY.
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                                              Subtitle
                         AN AMENDMENT TO THE ARKANSAS CONSTITUTION
                         CONCERNING THE TAXATION OF PERSONAL
                         PROPERTY AND REAL PROPERTY IN THE STATE
                         OF ARKANSAS.
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 BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-THIRD GENERAL
 ASSEMBLY OF THE STATE OF ARKANSAS, AND BY THE SENATE, A MAJORITY OF ALL
 MEMBERS ELECTED TO EACH HOUSE AGREEING THERETO:
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      That the following is proposed as an amendment to the Constitution of
 the State of Arkansas, and upon being submitted to the electors of the state
 for approval or rejection at the next general election for Representatives
 and Senators, if a majority of the electors voting thereon at the election
 adopt the amendment, the amendment shall become a part of the Constitution of
 the State of Arkansas, to wit:
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      SECTION 1.     The Arkansas Constitution is amended to read as follows:
      (a)    The General Assembly may enact laws to:
             (1)    Reduce the rates on the taxation of personal property,
 including without limitation laws providing that no tax shall be levied on
 personal property; and
             (2)    Create exemptions for the taxation of personal property.
      (b)    On or before January 1, 2047, the General Assembly shall provide
 by law that no tax shall be levied on personal property in the State of
 Arkansas.
      (c)    A law enacted by the General Assembly under this amendment:
             (1)    Requires a majority vote of each house of the General
 Assembly for passage; and
             (2)    Supersedes any provision of the Arkansas Constitution in
 conflict with the law.
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      SECTION 2.     Arkansas Constitution, Amendment 30,  1, is amended to
 read as follows:
       1.   Petition for tax levy  Election.
      Whenever 100 or more taxpaying electors of any city, having a
 population of not less than 5,000, shall file a petition with the Mayor
 asking that an annual tax on real and personal property real property,
 personal property, or both real property and personal property be levied for
 the purpose of maintaining and operating a public city library and shall
 specify a rate of taxation on real property, personal property, or both real
 property and personal property not to exceed five mills on the dollar, the
 question as to whether such tax shall be levied shall be submitted to the
 qualified electors of such city at a general or special election.     Such
 petition must be filed at least thirty days prior to the election at which it
 will be submitted to the voters.    The ballot shall be in substantially the
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 following form:
 For a ___ mill tax on real property and a ___ mill tax on personal property
 to be used for maintenance and operation of a public city library.
 Against a ___ mill tax on real property and a ___ mill tax on personal
 property to be used for maintenance and operation of a public city library.
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         SECTION 3.   Arkansas Constitution, Amendment 30,  5(a) and (b),
 concerning tax levies for capital improvements to or construction of a public
 city library, are amended to read as follows:
         (a)   Whenever 100 or more taxpaying electors of any city, having a
 population of not less than 5,000, shall file a petition with the Mayor
 asking that an annual tax on real and personal property real property,
 personal property, or both real property and personal property be levied for
 capital improvements to or construction of a public city library and shall
 specify a rate of taxation on real property, personal property, or both real
 property and personal property not to exceed three mills on the dollar, the
 question as to whether such tax shall be levied shall be submitted to the
 qualified electors of such city at a general or special election.     Such
 petition must be filed at least thirty days prior to the election at which it
 will be submitted to the voters.     The ballot shall be in substantially the
 following form:
 For a ___ mill tax on real property and a ___ mill tax on personal property
 to be used for capital improvements to or construction of a public city
 library.
 Against a ___ mill tax on real property and a ___ mill tax on personal
 property to be used for capital improvements to or construction of a public
 city library.
         (b)   The electors may authorize the governing body of the city to issue
 bonds as prescribed by law for capital improvements to or construction of the
 library and to authorize the pledge of all, or any part of, the tax
 authorized by this section for the purpose of retiring the bonds. The ballot
 submitting the question to the voters shall be in substantially the following
 form:
 For a ___ mill tax on real property and a ___ mill tax on personal property
 within the city, to be pledged to an issue or issues of bonds not to exceed $
 ___ , in aggregate principal amount, to finance capital improvements to or
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 construction of the city library and to authorize the issuance of the bonds
 on such terms and conditions as shall be approved by the city.
 Against a ___ mill tax on real property and a ___ mill tax on personal
 property within the city, to be pledged to an issue or issues of bonds not to
 exceed $ ___ , in aggregate principal amount, to finance capital improvements
 to or construction of the city library and to authorize the issuance of the
 bonds on such terms and conditions as they shall be approved by the city.
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      SECTION 4.    Arkansas Constitution, Amendment 38,  1, is amended to
 read as follows:
       1.     Petition for tax levy  Election.
      Whenever 100 or more taxpaying electors of any county shall file a
 petition in the County Court asking that an annual tax on real and personal
 property real property, personal property, or both real property and personal
 property be levied for the purpose of maintaining and operating a public
 county library or a county library service or system and shall specify a rate
 of taxation on real property, personal property, or both real property and
 personal property not to exceed five mills on the dollar, the question as to
 whether said tax shall be levied shall be submitted to the qualified electors
 of such county at a general or special election.    Such petition must be filed
 at least thirty days prior to the election at which it will be submitted to
 the voters.    The ballot shall be in substantially the following form:
 FOR a ___ mill tax on real property and a ___ mill tax on personal property
 to be used for maintenance and operation of a public county library or county
 library service or system.
 AGAINST a ___ mill tax on real property and a ___ mill tax on personal
 property to be used for maintenance and operation of a public county library
 or county library service or system.
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      SECTION 5.    Arkansas Constitution, Amendment 38,  5(a) and (b),
 concerning tax levies for capital improvements to or construction of a public
 county library or a county library service or system, are amended to read as
 follows:
      (a)    Whenever 100 or more taxpaying electors of any county shall file a
 petition in the County Court asking that an annual tax on real and personal
 property real property, personal property, or both real property and personal
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 property be levied for the purpose of capital improvements to or construction
 of a public county library or a county library service or system and shall
 specify a rate of taxation on real property, personal property, or both real
 property and personal property not to exceed three mills on the dollar, the
 question as to whether said tax shall be levied shall be submitted to the
 qualified electors of such county at a general or special election.     Such
 petition must be filed at least thirty days prior to the election at which it
 will be submitted to the voters.     The ballot shall be in substantially the
 following form:
 FOR a ___ mill tax on real property and a ___ mill tax on personal property
 to be used for capital improvements to or construction of a public county
 library or county library service or system.
 AGAINST a ___ mill tax on real property and a ___ mill tax on personal
 property to be used for capital improvements to or construction of a public
 county library or county library service or system.
         (b)   The voters may authorize the County Court to issue bonds as
 prescribed by law for capital improvements to or construction of the library
 and to authorize the pledge of all, or any part of, the tax authorized in
 Section 1 of this Amendment for the purpose of retiring the bonds. The ballot
 submitting the question to the voters shall be in substantially the following
 form:
 For a ___ mill tax on real property and a ___ mill tax on personal property
 within the county, to be pledged to an issue or issues of bonds not to exceed
 $ , in aggregate principal amount, to finance capital improvements to or
 construction of the county library or county library service or system, and
 to authorize the issuance of the bonds on such terms and conditions as shall
 be approved by the County Court.
 Against a ___ mill tax on real property and a ___ mill tax on personal
 property within the county, to be pledged to an issue or issues of bonds not
 to exceed $ ___, in aggregate principal amount, to finance capital
 improvements to or construction of the county library or county library
 service or system, and to authorize the issuance of the bonds on such terms
 and conditions as shall be approved by the County Court.
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         SECTION 6.   Arkansas Constitution, Amendment 79,  4, is amended to
 read as follows:
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           4.     [Income adjustments  Personal property millage rate  Uniform
 property tax rate requirement  Reassessment  Rollback adjustments].
          (a)    The General Assembly shall, by law, provide for procedures to be
 followed with respect to adjusting ad valorem taxes or millage pledged for
 bonded indebtedness purposes, to assure that the tax or millage levied for
 bonded indebtedness purposes will, at all times, provide a level of income
 sufficient to meet the current requirements of all principal, interest,
 paying agent fees, reserves, and other requirements of the bond indenture.
          (b)    The millage rate levied against taxable personal property and
 utility and regulated carrier property in each taxing unit in the state shall
 be equal to the millage rate levied against real property in each taxing unit
 in the state. Personal property millage rates currently not equal to real
 estate millage rates shall be reduced to the level of the real estate millage
 rate; except to the extent necessary to provide a level of income sufficient
 to meet the current requirements of all principal, interest, paying agent
 fees, reserves, and other requirements of the bond indenture.
          (c)(b)     The provisions of this section shall not affect or repeal the
 required uniform rate of ad valorem property tax set forth in Amendment 74.
          (d)(c)     The General Assembly may, by law, prescribe the method and
 means for reassessing real property and establish the frequency of
 reassessment. However, reassessment shall occur at least once every five (5)
 years.
          (e)(d)     Rollback adjustments under Article 16, Section 14 shall be
 determined after the adjustments are made to assessed value under this
 Amendment.
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          SECTION 7.      EFFECTIVE DATE.   This amendment is effective on and after
 January 1, 2023.
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          SECTION 8.      BALLOT TITLE AND POPULAR NAME.   When this proposed
 amendment is submitted to the electors of this state on the general election
 ballot:
                   (1)   The title of this Joint Resolution shall be the ballot
 title; and
                   (2)   The popular name shall be "An Amendment to the Arkansas
 Constitution Providing that No Tax Shall Be Levied on Personal Property
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 Effective No Later Than January 1, 2047, and Providing That Personal Property
 and Real Property Are Not Required to be Taxed at an Equal Rate".
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