The bingo tax and the Ft. Smith legislative delegation

The Joint Performance Review Committee took up the bingo tax, which appears to hurt Fort Smith area groups harder than others around the state. It's never really taken hold here on the Arkansas-side of Texarkana like it has on the Texas-side, where the prizes are higher and the games are allowed to be played more frequently.

The legislature enacted a tax to fund enforcement, licensing and regulation of the newly-passed bingo and charitable raffle amendment, and the tax has generated more than anticipated. Many are for a reduction in the tax, and many are for repealing it altogether. We'll be debating changes in the coming session, and the Fort Smith delegation is likely to take the lead in drafting legislation. The governor says administrative costs should come from bingo operations rather than the taxpayers. A couple of the points made in committee:

Rep. Betty Pickett (D-Conway) questioned why lawmakers were discussing the tax when nearly 70% of all money the nonprofits make on bingo goes to the prizes, while 6% ends up in the hands of charities. "My understanding of charitable bingo was that it was for charity," Pickett said. People in the audience hollered out: "No ! No ! No ! No one would play” if the prizes were reduced.

Sen. Dave Bisbee (R-Rogers) said it was interesting that groups were making more money from bingo before it was legalized. "I have found it’s almost always more profitable to be illegal than legal," Bisbee said.

Here's more: Ark. Democrat-Gazette; Ark. News Bureau