Case Title: Pulaski County v. Jacuzzi Brothers Division, Smith Fiberglass Products, Merico (Act 9 Industries) and City of Little Rock, Arkansas

Citation: 

Docket Number: 

State: arkansas

Court: Arkansas Supreme Court

Date: 1998-03-05T00:00:00Z

Document:
PULASKI COUNTY v. JACUZZI BROTHERS DIVISION,
Smith Fiberglass Products, Merico (Act 9
Industries) and City of Little Rock, Arkansas

96-1333                                            ___ S.W.2d ___

                    Supreme Court of Arkansas
                 Opinion delivered March 5, 1998


1.   Taxation -- standard of review. -- The standard of review in
     tax cases requires the taxpayer to establish an entitlement to
     an exemption from taxation beyond a reasonable doubt; a strong
     presumption operates in favor of the taxing power; tax
     exemptions are strictly construed against the exemption, and
     the supreme court has held that "to doubt is to deny the
     exemption."

2.   Taxation -- exemption from -- Article 16, Section 5(b), of
     Arkansas Constitution and Amendment 49 discussed. -- Article
     16, Section 5(b), of the Arkansas Constitution provides that
     "public property used exclusively for public purposes" shall
     be exempt from taxation; although Amendment 49 to the Arkansas
     Constitution is now repealed, it provided the constitutional
     authority for industrial development bonds; Amendment 65 to
     the Arkansas Constitution, which conceptually replaced
     Amendment 49 with respect to the issuance and purposes of
     revenue bonds, also permits governmental units to issue
     revenue bonds to finance all or a portion of the costs of
     facilities for the securing and developing of industry.


3.   Taxation -- Municipalities and Counties Industrial Development
     Revenue Bond Law -- purpose of. -- Act 9 of 1960, codified at
     Ark. Code Ann.  14-164-201 to -224 (1987 & Supp. 1997), is
     known as the Municipalities and Counties Industrial
     Development Revenue Bond Law; this law is intended to
     supplement all constitutional provisions and other legislation
     designed to secure and develop industry and may also permit a
     municipality to issue bonds to accomplish that purpose; the
     Revenue Bond Law empowers municipalities and counties to
     develop industry by owning, acquiring, constructing,
     equipping, and even leasing facilities that can be used in
     securing or developing industry within or near the
     municipality or county.  

4.   Taxation -- Ark. Code Ann.  14-164-701 discussed -- statute
     embraces exemption from ad valorem taxes of industrial
     facilities exempt under Article 16, Section 5, of Arkansas
     Constitution. -- Arkansas Code Annotated  14-164-701 (1987)
     declares and confirms that securing and developing industry is
     vital to the economic welfare of the State of Arkansas and its
     people; the statute urges that "maximum flexibility" be given
     to governmental entities in their efforts to "retain and
     expand existing, and locate new, industrial facilities"; the
     statute explicitly applies to financings initiated under the
     Arkansas Constitution, Amendment 49, and provisions of the
     Revenue Bond Law; it embraces the exemption from ad valorem
     taxes of all industrial facilities, which were exempt under
     Article 16, Section 5, of the Arkansas Constitution, as
     interpreted by the supreme court in Wayland v. Snapp, 232 Ark.
     57,