Arkansas Code § 26-82-103 - Authority to Levy Tax

(a) (1) The governing body of a city or county may adopt an ordinance levying a local sales and use tax in the amount of one-eighth of one percent (0.125%), one-fourth of one percent (0.25%), one-half of one percent (0.5%), three-fourths of one percent (0.75%), one percent (1%), or any combination of these amounts to pay project costs of an economic development project located within the levying entity or near the levying entity if still located within the state.

(2) (A) The ordinance may levy multiple local sales and use taxes.

(B) However, there shall not be in effect at any one (1) time local sales and use taxes levied under this chapter at an aggregate rate greater than one percent (1%).

(b) A certified copy of the ordinance authorizing the levy of a local sales and use tax shall be provided to the Director of the Department of Finance and Administration as soon as practicable after the adoption of the ordinance.

(c) The local entity shall:

(1) Determine the maximum amount of revenue to be generated by each local sales and use tax levied under this chapter; and

(2) State in the levying ordinance the maximum amount of revenue to be generated by each local sales and use tax levied under this chapter.

(d) (1) The local sales and use tax levied under this chapter shall expire when the maximum amount of revenue determined under subdivision (c)(1) of this section has been collected as determined under this subsection (d).

(2) (A) Except as otherwise provided in ยง 26-82-106, to provide for the accomplishment of the administrative duties of the director, the local sales and use tax shall terminate on the first day of the calendar quarter after the expiration of ninety (90) days from the date there is filed with the director a written statement signed by the chief executive officer of the city or county levying the local sales and use tax and identifying the local sales and use tax to be terminated.

(B) In the statement described in subdivision (d)(2)(A) of this section, the city or county levying the local sales and use tax shall certify that it has received the maximum amount of revenue stated in the levying ordinance.

(3) The chief executive officer of the city or county shall file the certification required under this subsection (d) not later than thirty (30) days after the receipt of the maximum amount of revenue stated in the levying ordinance.

(4) Upon the termination of a local sales and use tax under this subsection (d), any surplus tax collections that may have accumulated from the local sales and use tax shall be transferred to the general fund of the city or county.

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Last modified: November 15, 2016