County in conundrum with old hospital tax

County in conundrum with old hospital tax

Millage for defunct Critten-den Regional still on the books

news@theeveningtimes.com

Although it is too late to get it on the ballot for residents to vote on in the November election, county officials are looking at other options to repeal the old hospital tax.

The old tax, which is fourtenths of a mil, was passed in the 1940s by county voters to support the maintenance and operation of the former Crittenden Regional Hospital.

CRH went bankrupt and closed in August of 2014, but the county still owns the building and is still collecting the tax.

The tax brings in about $217,000 a year to the county.

But with a new tax on the books to build a new hospital, county voters are essentially being doubled taxed.

“I think it is the right thing for us to try and find a way to eliminate it (old tax),” said County Judge Woody Wheeless. County Attorney Joe Rogers told the Quorum Court that according to a state constitutional amendment which deals with this type of tax, the tax can be voted out if 100 people sign a petition to put it on the ballot.

But the election can only be held during a general election year and the ballots for this year’s election have already been printed.

“It may be too late to do this because of the ballot situation,” Rogers said.

“The problem is, if it doesn’t come off it is going to stay on until the next general election.”

Rogers said the law isn’t very clear however.

Normally, the Quorum Court has to vote to put a tax question on the ballot.

The county held four elections — one to enact a tax specifically to support the existing (Crittenden Regional) hospital in July 2014 — which was later repealed

in a second election

in Dec. 2014 after CRH went bankrupt.

Voters then went to the polls for again in July of 2015 and passed a new tax, this one for Ameris Health Systems to operate a hospital in the old CRH building. When Ameris ultimately backed out, in a fourth and final referendum, voters passed a measure in March 2016 to redirect that tax to operate and build a new hospital, which will be run by Baptist Memorial Health Care.

Rogers said the amendment does not mention the Quorum Court having to vote on it.

“This is a complicated issue,” Rogers said. “The amendment doesn’t even talk about this body voting on it. It talks about 100 citizens signing a petition to put it on the ballot to take it off. So we are assuming this amendment law is still valid.”

Further muddying the water is the question of whether the county could use the money from the existing millage for the new hospital, or whether it was only for the old hospital, which no longer exists.

The county has since leased the former CRH building to the Arkansas Department of Community Corrections as a treatment center for non-violent female offenders, but still owns the building.

“You might have some issues spending that money on something else — even on a building,” Rogers said. “You might be able to use the money on the new hospital. We will own the new hospital. The money probably could be used for the new hospital.”

The tax only specifies it can be used for maintenance

and support of a public

hospital.

Justice Lisa O’Neal asked whether the county could bank the money collected from the millage and use it in the future if they ever needed to tear the structure down.

“We still own that building,” O’Neal said. “Let’s say in 20 years we have to do something with it. It’s not costing the citizens much. It’s for the building and maintenance.”

Justice Lorenzo Parker said the technically the old hospital is now just a building. However, he agreed that the county may be able to make a case that the money can be spent on the new hospital.

“It sounds to me like I think we can use it,” Parker said.

County Tax Collector Ellen Foote suggested that since the Quorum Court votes on setting the millage rates, that they vote to exclude collecting the fourtenths millage.

“The hospital tax is a county tax,” Foote said.

“That’s y’all’s. If you don’t vote to collect it, what is going to happen?”

Justice Vickie Robertson agreed.

“We’ve got a tax already in place,” Robertson said.

“We’re taxing people twice. Let’s just make law then. I think we should make the ceremonial effort on the Quorum Court to say that the Quorum Court voted to rescind it. And if we did something that somebody felt was wrong, they would have to file a lawsuit saying no, I want to continue the tax. I don’t see anybody challenging us about removing a tax.”

Rogers cautioned against taking that course.

“There is always some lawyer out there looking to collect a fee who would sue,” Rogers said. “If the amendment says you can vote it out by the people, I don’t know how the Quorum Court can take it off. I can get a petition done. But if we can’t get it on the ballot we are spinning our wheels. It’s complicated. I talked to the bond lawyer in Little Rock and he doesn’t know the answer either.”

By Mark Randall