FOR IMMEDIATE RELEASE

Campaign to Elect Karen Hopper--431-8934

April 28, 2008

Hopper Pledges To Work to Reduce Excessive Tax on Charitable Bingo

            State Representative Candidate Karen Hopper (R) of Lakeview said today if elected she will work to reduce the excessive tax on charitable bingo that has left many local veteran’s groups, churches, and community organizations unable to fund their causes.  Hopper is a candidate in the May 20 Republican Primary Election.

            Hopper said information from the Bureau of Legislative Affairs, the research arm of the Arkansas General Assembly, indicates the state has collected in excess of $830,000 through March from a 1-cent per bingo card tax.  The Arkansas Department of Finance and Administration (DF&A) had projected it would cost under $600,000 annually to administer the program.

            “At this rate with three months to go in the fiscal year, the state stands to collect in excess of a half million dollars more than it needs to administer the program.  This money should be in our communities funding the projects of our veteran’s groups, churches, and community organizations,” Hopper said.

            Voters in 2006 approved a constitutional amendment legalizing charitable bingo and raffles.  Act 388 of 2007 established the rules and regulations for operators, including a method of taxing the games.  Under the rules established by Act 388, groups must purchase a license and then pay a 1-cent tax on each bingo game card or “face” sold.  The Act also requires charities to purchase bingo and raffle licenses.

            Hopper said despite the legislature having input from representatives of community organizations around the state as the terms of Act 388 were hammered out, DF&A’s interpretation of the rules has lead to the excessive collections.

            “The result is that community organizations across the state are suffering to the point they are not able to fund their causes.  The Alley-White American Legion Post 52 of Mountain Home advises it cannot meet its overhead and has resorted to holding a monthly pancake breakfast to generate additional income,” Hopper said.

            “We need to reduce this excessive tax so that our local community organizations are able to fund college scholarships, Boys and Girls State delegates, and numerous other activities,” Hopper added.                   While efforts have been made requesting DF&A reduce the tax, officials with that state agency maintain any changes must be made legislatively.

In The News