Arkansas House Bill HB1102

Arkansas 2022 Regular Session

• Introduced: 2/16/22
• Refer: 2/16/22
• Report Pass: 2/22/22
• Engrossed: 2/23/22
• Enrolled: 3/2/22
• Chaptered: 3/3/22
• Passed: 3/3/22

Caption

An Act For The Office Of The Treasurer Of State - Refund Of Local Taxes Supplemental Appropriation.

Impact

The enactment of HB 1102 is expected to have a significant impact on the financial health of local governments across Arkansas. By providing these refunds, the bill seeks to mitigate the negative effects of earlier revenue losses due to the pandemic. This legislative action is crucial for maintaining essential local government functions, which include public safety, sanitation, and infrastructure maintenance. Moreover, it reaffirms the state’s commitment to supporting its cities and counties in their financial recovery efforts.

Summary

House Bill 1102 is an appropriations bill aimed at providing refunds for local sales and use taxes to cities and counties in Arkansas. The bill allocates a total of $130 million, with $80 million specifically designated for city refunds and $50 million for county refunds. This funding is supplemental and is intended to address budgetary shortfalls faced by local governments in the fiscal session of 2022 as they recover from economic challenges. The intent of the bill is to ensure that local municipalities receive the financial support necessary to deliver services to their residents.

Sentiment

The sentiment surrounding HB 1102 appears to be largely positive among lawmakers, as evidenced by the unanimous support it received during the voting process where it passed 32-0. Legislators view this bill as a necessary measure to aid local governments and ensure they can sustain operations without further sacrificing critical services. The bipartisan nature of the support indicates a shared understanding of the importance of financial assistance for local governments, transcending political divides.

Contention

While the bill passed with strong support, there were underlying concerns regarding the sustainability of the funding mechanisms for such appropriations. Opponents of increased appropriations sometimes debate whether the state is adequately considering long-term funding strategies for local governments, given fluctuating revenues. However, in this instance, the direct need for immediate financial aid during the fiscal year was prioritized, leading to a consensus among various stakeholders in the state's budget discussions.