The Effect of Statewide Reassessment and Millage Rollback on School Finance in Arkansas / Tommy R. Venters and Martin W. Schoppmeyer.

Amendment 59 to the Arkansas Constitution established three kinds of taxable property (real, personal, and utility) and prescribed different reassessment and millage rollbacks for each. This has led to a lack of revenue growth from any source except real property. Because more funds are needed to implement new state standards in the schools, 12 solutions have been suggested for changing the effect of the rollback on personal and utility property. Some of these suggestions are to (1) repeal Amendment 59; (2) classify property; (3) classify property, but remove household goods from tax rolls; (4) create a scheduled reduction in personal property millage; (5) combine real and personal property millages in each school district on the same ratio that exists between real and personal property; and (6) classify both utility and carrier personal property as personal property. Most suggestions would require another constitutional amendment. The most viable solution is to let the provisions of the law take effect and provide new revenue to make up the lack of funds. Other states should: (1) avoid temporary classification of property, if possible; and (2) avoid making a complex rollback plan part of the state constitution. Advantages and disadvantages of each suggestion are listed. (IW)

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