Taxpayers in six northern Arkansas counties will begin receiving refunds this month following a court ruling that declared a fee collected on property tax bills from 2017 to 2019 to be an unlawful tax. The $18 annual fee, appearing on property tax bills in Baxter, Marion, Searcy, Boone, Newton, and Carroll counties, was originally meant to address debt related to the 2012 closure of the Nabors landfill in Baxter County. However, the Arkansas Court of Appeals determined earlier this year that the funds collected represented a tax and not a fee, prompting refunds to affected taxpayers.
The legal resolution came after Fayetteville attorneys Matt Bishop and Wendy Howerton filed class-action lawsuits in 2018 on behalf of taxpayers. Pulaski County Circuit Judge Tim Fox initially ruled in favor of bondholders who had investments tied to the landfill’s bonds, deeming the $18 charge a valid tax. However, the Arkansas Court of Appeals later determined the matter should not have been handled in Pulaski County and ordered the funds returned.
According to Howerton, refunds will amount to $12.10 per year for most taxpayers after attorney fees are deducted. For those who paid the fee for multiple years, the refunds will reflect additional amounts—for instance, $24.20 for two years. Checks are expected to start arriving later this month, with approximately 60,000 checks to be mailed. Affected residents who have changed addresses since prior refunds issued in April 2022 or who have questions are encouraged to contact the Bishop Law Firm at 479-871-2029.
The origins of the $18 fee trace back to a $12 million default on bonds issued to finance the purchase of the Nabors landfill by the Ozark Mountain Solid Waste District in 2011. After its closure in 2012, the debt burden fell on taxpayers in the six-county area. The funds collected over three years were held by a bank, and some interest accrued on the amount returned.
Refund distribution became possible only after court proceedings concluded and individual counties issued distribution orders. Taxpayers had already received refunds for the first year of collections, 2017, in 2022.
Howerton credited her involvement in the case to learning about the fee from her father-in-law, a resident of Carroll County. Distribution logistics for refunds will involve an external team to manage printing and mailing.
The refunds provide closure to a drawn-out legal saga that highlighted tensions between taxpayer accountability and financial obligations stemming from public waste management infrastructure.
For additional details, residents can reach out to Bishop Law Firm for assistance.