By KENDALL OWENS
T-H Staff Writer
With the implementation of the expanded sales tax slated to take place on Thursday, several local business owners are voicing their displeasure over having to charge taxes, and with the legislature that approved the changes.
On July 1, Act 107 of the Second Extraordinary Session of 2003 will take effect. The law, which amended current Arkansas sales tax laws, will now provide for the collection of sales tax on several items which were exempt under current sales tax laws.
Those services to be taxed include: Wrecker and towing services; collection and disposal of solid waste; cleaning parking lots and gutters; dry cleaning and laundry services; industrial laundry services; mini warehouse and self storage rental services; body piercing, tattooing and electrolysis services; pest control services; security and alarm monitoring services; boat storage and docking fees; furnishing campground spaces or trailer spaces at public or privately owned campgrounds on less than a month-to-month basis; locksmith services; pet grooming and kennel services and new installation and replacement labor of hardwood , vinyl, ceramic tile or any other type of flooring
Joe King, of King Disposal, said the new tax laws place him in a position where he will have to tax his clients twice on the same services, which he says is unfair.
"The way that the Legislature set this thing up really isn't fair to my customers. It's a double tax because it taxes them on the collection of waste along with a tax on the disposal of the waste. I'm now going to have to charge an 8 percent tax when I pick up the garbage, and then turn around and charge another 8 percent tax to dispose of it, and it's not fair to the customer. That's 16 percent taxes to dispose of the same waste, but we'll collect it and send it to the state because that's what we're obligated to do," King said.
King said efforts are under way to make changes to the law, but he was unsure if something could be done before customers see their first new bill.
"I really don't like this, and I'm hoping that we will be able to get something done before it takes effect. My customers won't see a difference in their billing until August, and there is a move to have this changed before it goes into effect. I just hope we can get something accomplished because as it stands, it isn't a fair tax," King said.
As King spoke of attempting to make changes to the law, Charlie White of All-American Mini Storage and Car Wash claimed that the tax changes showed the effectiveness of lobbyists at the state level.
"If you take a look at the businesses that will be affected, you can see one similarity between most of them -- they don't have strong lobbyists in Little Rock. If you're going to do this, then why not just go across the board and make the changes. They didn't put the tax on lawyer fees or on doctors, why? Because of the people that they have fighting for their interests in Little Rock," White said.
"I don't understand why we needed a new tax anyway. If you look at the inefficiencies in government when we have so many taxes already, you have to question those that are placing the taxes on the people. They're wasting the money that they're already getting, so why not just tax the people for more?" White said.
The changes may also cause some confusion for businesses that operate both inside the state of Arkansas and in the surrounding states. Charles Bokker, owner of White Motor Company, questioned how he would bill customers for tows that traveled across state lines.
"I don't like this at all. It's going to create a lot of questions not only for my business, but for my customers alike. If we get a call and have to tow someone from Memphis back to Arkansas, do I have to charge a tax only on the driving that we do in Arkansas, or do we charge the tax on the whole bill? By the same token, if I take your vehicle out of the state, what do I charge taxes for?" Bokker questioned.
According to the Arkansas Department of Finance and Administration website, in the question of a tow from across state lines back into the state, taxes could either be applied to the entire bill, or separately to the bill if it was separated into two bills. The taxation would be the same if the vehicle was being towed outside of the state with all taxation applied according to the billing procedure.
Thursday's tax changes will also apply to the initial installation services of motor vehicles, aircraft, farm machinery and implements, motors of all kinds, tires and batteries, boats, electrical appliances and devices, furniture, rugs, flooring, upholstery, household appliances, televisions and radios, jewelry, watches and clocks, engineering instruments, medical and surgical instruments, machinery of all kinds, bicycles, office machines and equipment, shoes, tin and sheet metal, mechanical tools and shop equipment. If the item being installed is specifically exempted from the tax imposed by the Arkansas Gross Receipts Tax, the installation will also be exempt.
By DAVID NICHOL
T-H Staff Writer
More than $14 million was approved for work on the St. Francis River Basin and its tributaries Friday by the U.S. House of Representatives as part of the Energy and Water Appropriations Act.
U.S. Congressman Marion Berry, who sits on the Appropriations Energy and Water Subcommittee, voted for the bill after months of work.
"Obviously, we never get everything we want, but this is pretty close," Berry said in a press release. "Today's passage means millions of dollars for water irrigation, conservation and construction projects throughout Arkansas' First Congressional District. Determining which priorities to fund has become more significant than ever. I am pleased to see investments in rural America's infrastructure rightfully placed high among those priorities."
There is a $14.6 million for multiple projects in the St. Francis River and tributaries, representing $5.6 million more than the president's request. Located in Southeastern Missouri and Northeastern Arkansas, these projects provide for protection against flooding by improving, operating and maintaining the St. Francis and Little rivers and their tributaries.
Some of the other First District projects are: A flood control project at Wynne, $50,000; a feasibility study on a proposed Blytheville Harbor, $600,000 ; environmental restoration at Horseshoe Lake, $20,000; maintenance of the Helena Harbor, $146,000.
"The importance of waterborne transportation in our region is undeniable," Berry said. "These projects are necessary, constructive and I am proud to have worked to bring them to Arkansas."
By TAMARA JOHNSON
Managing Editor
A man being sought by Oklahoma authorities for over six months was captured in St. Francis County Friday afternoon after wrecking his car on Interstate 40.
Troopers with Arkansas State Police Troop D in Forrest City responded to the accident about 2:44 p.m. Friday near the 264 westbound mile marker on I-40. According to the report, Cary L. Rogan, 27, of Lawton, Okla., had driven his vehicle off the roadway and was standing by the car when police arrived.
The officer reported that Rogan appeared intoxicated and refused to give police his name or any personal information. After being transported to the St. Francis County Jail, police identified Rogan and learned that he was wanted on felony warrants from Tillman County Oklahoma where he had allegedly assaulted a police officer in December.
A Tillman County court clerk said officers there attempted to arrest Rogan on Dec. 7 after stopping his vehicle on a traffic violation. As the officer, a member of the Oklahoma Highway Patrol, attempted to arrest him, Rogan allegedly struck the officer several times in his chest and face with his fists and fled on foot.
Warrants charging Rogan with escape from arrest or detention, assault and battery on a police officer, driving under the influence of alcohol, driving while license suspended and transporting an open container, were issued for Rogan just after his escape.
Locally, Rogan is charged with careless driving, suspended driver's license, criminal impersonation, public intoxication and obstructing government operations.
He was scheduled to be arraigned in St. Francis County District Court this afternoon.
A Forrest City man has been charged in connection with the alleged sexual abuse of an 11-year-old girl Friday.
According to the police report, both the alleged victim and her mother made a report to the police. The mother reported that she heard her daughter screaming that there was a man in her room. The man had fled by the time the mother got to the girl's bedroom.
The girl reported that she was awakened around 1 or 1:30 a.m. by a man who was fondling her, and she began screaming. She gave police a description of the man and what he was wearing.
The alleged victim was shown a photo lineup of six men, and identified Rodney Tabron, 36, of 727 Hodges, Forrest City.
Tabron was arrested, and has been charged with fourth-degree sexual assault and residential burglary.
Gov. Mike Huckabee last week appointed Forrest City Mayor Larry Bryant to the Fire and Police Pension Review Board. Bryant will serve until Jan. 1, 2008.