Filings show costs, contributions with 1% tax issue

story by Michael Tilley
[email protected]

A flurry of financial reports were filed in late October by opponents of the 1% prepared food tax after some of the opposition leaders said their expenditures related to the 1% issue were not reportable to the Arkansas Ethics Commission.

Proceeds from the 1% prepared food tax, which is on the Nov. 8 ballot, would support operations of the Fort Smith Convention Center. A 1% prepared food tax is estimated to raise about $1.8 million annually.

On Oct. 25, The City Wire reported that Forward Fort Smith, the group pushing for passage of the 1% prepared food tax, filed a statement with the commission showing $9,100 in collections. In that story, Liz Armstrong and Jerry Hamel said their efforts did not require reporting.

The rules, according to Graham Sloan, director of the Arkansas Ethics Commission, are simple: “If a group, or an individual, receives or expends $500 dollars to advocate passage or defeat (of a ballot item), then there is reporting that is required.”

Hamel, owner of C&H Tire and a frequent critic of city government, was not willing to discuss in involvement during a previous e-mail interview.

“(R)eally hate to not give a direct answer but most of the people that gave money for the NO PREPARED FOOD TAX SIGN think that its none of your business!” Hamel noted Oct. 25 in an e-mail response when asked about his rental of a billboard at the corner of Fresno and Towson Avenue.

On Oct. 26, Hamel filed paperwork with the commission showing that he paid $655 for the billboard rental.

The Citizens for Efficient Government, the group actively opposing the 1% tax, have not filed paperwork with the commission.

LEGAL COSTS
On Oct. 31, the Citizens for Fair Taxation filed 14 separate documents — with six being duplicates reflecting revisions to the originals — showing collections that began as early as May 13. Eddie York, who led the successful legal effort to force the 1% prepared food tax to a vote, signed the paperwork as the committee officer.

Following are the contributors to the Citizens for Fair Taxation.
Eddie York — $1,000 (loan)
Eddie York — $300
TGI Fridays — $1,500
Calico County — $250
Bravo Italian — $100
Jack Swink — $200
Catfish Cove — $400
Harry’s Hamburger Barn — $100
Beef O’Brady’s — $250
Jerry Hamel — $6,000
George’s Restaurant — $200
Juan’s Mexican Restaurant — $400
Village Inn — $200
Western Sizzlin — $1,000
MSCI — $400
Geno’s Pizza — $450
Belle Point Beverages — $1,000

Following are the expenditures of the Citizens for Fair Taxation.
Brian Meadors, attorney — $12,096.35
Art’s BBQ — $678.65 (meals)
Eddie York — $1,000 (loan repayment)

York said the money listed in his reports funded only the legal effort to get the issue on the ballot. He stressed that he is not raising money or spending money for election advocacy.

The 1% tax was approved for enactment by ordinance by the board in February. A petition drive pushed by York and other local restaurant owners attempted to force the tax to an election. The petition effort resulted in a court hearing during which Sebastian County Circuit Court Judge Michael Fitzhugh overturned the city’s rejection of the petition drive.

“I am totally out of that,” York said of the election push. “All I was doing was to get it on the ballot, and we did that and now I’m done with it.”

PRE-ELECTION REPORT
The Forward Fort Smith group filed its pre-election report on Nov. 1, a report required seven days before an election.

The report, signed by Jeff Smith, shows total collections of $16,300 as of Oct. 31, and expenditures of $8.171.74 as of Oct. 31.

Following are the new contributors in the pre-election report (listed in the order filed).
Lisa Grenier — $300
Stephens Inc. — $1,000
Richard Griffin — $1,000
Burns & McDonnell — $1,000
Doug & Kathy Babb — $1,000
Arkansas Best Corp. — $2,000
Arkansas Best Corp. Political Action Committee — $500
Lavon Morton or Brenda Yelvington — $200
Harry Lewis — $200

Following are the listed expenditures in Forward Fort Smith report.
Right Mind Advertising — $8,936.44
U.S. Postal Service — $200