Arkansas Code § 14-164-327 - Capital Improvement Bonds -- Local Sales and Use Tax -- Levy

(a) (1) In lieu of or in addition to the levying of an ad valorem tax to retire bonds for capital improvement purposes, the legislative body of a municipality 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 retire the bonds in accordance with the terms of this section and ยงยง 14-164-328 -- 14-164-335.

(2) (A) The ordinance may levy multiple taxes.

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

(b) A certified copy of the ordinance or ordinances authorizing the levy of a local sales and use tax or taxes and the issuance of bonds secured by the taxes shall be provided to the Director of the Department of Finance and Administration and to the Treasurer of State as soon as practicable after the adoption of the taxes.

(c) Section 26-74-414(b) does not apply to a local sales and use tax levied by a county under this subchapter for the sole purpose of retiring capital improvement bonds if all collections derived from the local sales and use tax are pledged by the county to pay the principal and interest of the capital improvement bonds.

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Last modified: November 15, 2016