Arkansas Supreme Court upholds water fee

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The Judicial Update

September 23, 2011

Arkansas: Last week, the Arkansas Supreme Court agreed with a Circuit Court ruling upholding a fee for residents of Hot Springs. Two taxpayers challenged the water bill fee, stating that the additional monetary requirement was actually a tax, which would need to be approved by the public. Justice Karen Baker differentiated between the two in the opinion, saying, "Taxing power is usually exercised to provide funding for public services at large, while police power is usually exercised to cover the cost of administering a regulatory scheme or providing a service."[1]