Arkansas Constitution Article 16 - Finance and Taxation
Arkansas Constitution – Article 16: Finance and Taxation
🔷 Overview:
Article 16 of the Arkansas Constitution outlines the state’s rules and limitations regarding finance, taxation, public debt, and use of public funds. It ensures fiscal responsibility, tax fairness, and accountability in managing public money.
📌 Key Sections & Provisions:
Section 1 – Uniformity of Taxation
All taxes must be equal and uniform on the same class of property.
Taxes must be based on true value and assessed according to law.
Section 2 – Taxation of Corporations
Corporations must be taxed the same as individuals.
No special tax privileges.
Section 3 – Public Purpose
Taxes must be levied for public purposes only.
Section 4 – Cap on Property Tax Rate
Property tax cannot exceed one-half of one percent (5 mills) unless approved by voters.
Section 5 – Legislative Power to Tax
Legislature has the power to levy taxes, but not in ways forbidden by the Constitution.
Section 6 – No Public Aid to Private Entities
The state or local governments may not lend credit or donate funds to private individuals, corporations, or associations.
Section 7 – Restrictions on Public Debt
The state cannot incur debt beyond $300,000, except in cases of war, invasion, or insurrection.
Section 8 – Publication of Expenses
The state treasurer must publish semiannual reports of all expenditures and revenues.
Section 9 – Financial Reports
Each county treasurer must publish annual financial statements.
Section 10 – Salaries Must Be Authorized by Law
No public money may be paid to any person unless authorized by law.
Section 11 – Budget Requirement
The General Assembly must provide for a balanced budget and cannot appropriate more money than the state's revenue.
Section 12 – School Funding
Funds allocated for schools cannot be diverted to other uses.
Section 13 – Reassessment of Property
Procedures for correcting property assessments.
💡 Purpose:
Article 16 is designed to:
Prevent misuse of public funds.
Ensure transparency and fairness in taxation.
Protect taxpayers from unjust debt or favoritism.
Require governments to live within their means.
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