By Rob Moritz
Arkansas News Bureau

LITTLE ROCK — Non-profit groups that paid a 1-cent per card tax to operate charitable bingo games would receive a refund under a bill by a lawmaker who is sponsoring another measure to do away with the tax completely.

House Bill 1432 by Rep. Tracy Pennartz, D-Fort Smith, was referred Thursday to the Special Language Subcommittee of legislative Joint Budget Committee for review.

Under the bill, organizations that host the games would receive $601,000 in refunds for a portion of the tax they are paying on bingo cards during the current fiscal year.

The tax generated about $1.1 million for the state Department of Finance and Administration last fiscal year and is expected to produce about the same amount this fiscal year. 
DF&A used about $500,000 of the revenue to fund a five-member division to regulate the games.

The agency “has already taken what they planned to spend for” this fiscal year, Pennartz said.

After the meeting, she said her bill was an effort “to cover all bases.” She said she wants to repeal the tax and refund a portion of the money that non-profits have already paid back to them.

Last week, the House passed HB 1111, which would repeal the tax. That bill is now in the Senate.

HB 1111, which is to be considered by the Senate Committee on State Agencies and Governmental Affairs Tuesday, would repeal the 1-cent bingo card tax and make other small changes to the law, including allowing two organizations to hold bingo sessions at the same location.

Voters approved a constitutional amendment in 2006 legalizing bingo and raffles for charitable purposes. The Legislature in 2007 approved rules for the games and the card tax to fund statewide monitoring of the games.

The tax has raised $1.1 million since it went into effect in August 2007.

Pennartz proposed eliminating the tax after bingo operators said the tax is cutting into proceeds for charitable giving and that local law enforcement agencies could monitor bingo operations without a state division.

Gov. Mike Beebe has expressed concern that eliminating the tax would hinder regulation of charitable bingo. He has said he would consider a reduction in the tax, as long as state regulation continues.