Court holds Teacher Retirement property is taxable | Arkansas Blog

Thursday, June 16, 2011

Court holds Teacher Retirement property is taxable

Posted By on Thu, Jun 16, 2011 at 1:46 PM

The Arkansas Supreme Court today affirmed a Garland Circuit Court ruling that investment property owned by the Arkansas Teacher Retirement System — in this case a Hot Springs shopping center— is not exempt from the property tax.

The retirement system argued that it should be exempt because proceeds supported what is essentially a tax-exempt government entity, the agency that manages teacher retirement. It argued the property was used "exclusively for public purposes" — paying public retirement benefits.

The court didn't buy it. It cited a line of cases — investments by a public hospital and school district, for example — in which it had said the beneficiaries of the investment weren't sufficient ground for a tax-exemption. The court rejected an argument that the system investment was analagous to land purchased under constitutionally authorized industrial development bond schemes, where the land is owned by the public and exempt from taxes. This case did not involve such bonds, the court said. The court also dismissed an argument that a state statute prohibited taxation of teacher retirement property investments. The statute "must yield to the Constitution," the court said.

The retirement system has had disputes on other parcels of Arkansas land on the taxing issue, now resolved in favor of those seeking property taxes.

ALSO AT THE SUPREME COURT TODAY: Little Rock lawyer Gene Sayre made oral arguments today on the lawsuit challenging the constitutional amendment — since approved by voters — that raised the consumer interest limit, took off a limit on government bonds and provided for bond finanacing of energy projects. Sayre has argued that the legislature rolled up too many unrelated subjects in one proposal, but a lower court rejected the argument. If practical politics matter with this court, hard to see this one getting overturned. But who knows?

Tags: , ,


Favorite

Comments (2)

Showing 1-2 of 2

Add a comment

 
Subscribe to this thread:
Showing 1-2 of 2

Add a comment

More by Max Brantley

Readers also liked…

  • Police identify two women found fatally shot on Chicot Road

    Little Rock police have identified two women found dead of gunshot wounds in an SUV parked next to a vacant trailer in a mobile home park at 11500 Chicot Road.
    • May 16, 2017
  • Use of solar on the rise in Arkansas

    With a pivotal ruling expected any day now from the Public Service Commission, Kyle Massey at Arkansas Business reports on the increase in Arkansans adding solar generation units on their homes and business.
    • Apr 13, 2018
  • Today in Trump: Obstruction of justice anyone?

    It's the New York Times with the news today. Fired FBI Director James Comey kept notes of his talks with Donald Trump. A memo he wrote in February after a meeting with Trump said the president asked him to shut down the investigation into Michael Flynn, his former national security adviser.
    • May 16, 2017

Slideshows

  • Arkansas vs Ole Miss at War Memorial stadium in Little Rock, Saturday, Oct. 13, 2018. After leading for much of the game, Arkansas lost 37-33 when Ole Miss scored the game winning Touchdown with less that 2 minutes left. 
  • Margaret Clark Adventure Park
    New sculptures, preschoolers play area dedicated in Riverfront Park in Little Rock.

Most Recent Comments

 

© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation