Tax-free thongs spur wisecracks in committee
Posted on Friday, November 21, 2008
Discussion on a proposed “back-to-school tax-free holiday” in a legislative committee Thursday included questions about whether it would cover thong underwear.
Sen. Denny Altes, R-Fort Smith, presented to the House and Senate Revenue and Taxation Committees his proposal for exempting from the state and local sales tax clothing purchased in Arkansas during the first Saturday in August.
“Oklahoma has recently introduced a sales tax holiday and now everyone from Fort Smith is going to Oklahoma to shop,” Altes said. “We’re losing state revenue because of it.”
The Department of Finance and Administration estimates that the statewide effect of Altes ’ proposal would reduce state revenue $ 1. 6 million a year and city and county revenue $ 530, 000 a year.
“So this would exempt all human wearing apparel, I guess underwear and everything, right ?” asked Rep. Lindsley Smith, D-Fayetteville.
She then whispered with some of her colleagues.
“A thong ?” she asked, chuckling, apparently repeating what someone else said.
“I wouldn’t go there, Ms. Smith,” Senate Chairman Jim Hill, D-Nashville, said.
Smith responded that she just wanted to understand the bill, which limits the sales tax exemptions to items costing no more than $ 75.
“It’s for anyone, not just schoolchildren ?” she asked.
“I don’t know,” Hill responded. “I didn’t write this thing. Mr. Altes, do you want to lean up [to the microphone ]? Does this include thong underwear or what’s the deal ? Ms. Smith wants to know about that.”
“I do not,” Smith said.
Altes then told Hill: “You said you weren’t going to go there and then you did.”
Hill, known for making wisecracks, is a shorttimer at the Legislature. A 16-year veteran of the House and Senate, he was term-limited from seeking re-election this year and won’t be a legislator in the 2009 session. Thursday, he seemed to be enjoying presiding over one of his last meetings.
Altes, answering Smith, said his proposal was “mostly for poor kids” but wouldn’t be limited to them.
This is the second such proposal since September in preparation of the 2009 legislative session, which starts in January.
Rep. Clark Hall, D-Marvell, appeared before the same committee Sept. 18 to discuss his idea to exempt clothing, computers and school supplies during a three-day period. It would reduce state revenue by $ 5 million a year, according to the finance department.
Hall maintains that Arkansas is losing a lot of business to Memphis during these weekends because Tennessee has such an exemption.
Sen. Terry Smith, D-Hot Springs, asked Assistant Revenue Commissioner John Theis whether the agency’s revenue-loss estimate takes into account whether there are Arkansas dollars “flooding across into Memphis.”
Theis said it doesn’t.
“He’s just jerking your chain,” Hill told Theis about Smith. “I wouldn’t pay him any attention.”
Altes then asked Theis if his estimates are nothing more than a “soaring wild guess at best.”
“No, sir, that’s not correct,” Theis responded.
Rep. Buddy Lovell, D-Marked Tree, asked whether Hall’s was a better proposal because it also includes school supplies.
Hill said Hall already had a hearing on his proposal.
“Today, all we’re going to do is mess with [Altes ] a little bit,” Hill said.
Rep. Jim House, D-Fayetteville, then asked a question but his voice was garbled by a glitch in the committee room’s audio system.
“Mr. House, I can’t make heads or tails about what you’re saying,” Hill said.
House then repeated his question, asking if the Legislature could cut city and county taxes.
“Y’all are going to have to work on that next session,” Hill said. “Any intelligent questions ?”
Hearing none, Hill ended discussion on Altes’ proposal.
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