The North Little Rock City Council on Monday will discuss a proposed ordinance to enact a one-percent sales and use tax.
According to the proposed ordinance, the levy would remain in effect until Dec. 31, 2022. If enacted, the funds would be used to acquire, construct, repair, equip, and/or improve streets, drainage structures, and facilities for the police and fire departments, the district courts, and one-half of which would not be limited in duration or use.
“The City Council of North Little Rock has determined that there is a great need for immediate improvement of municipal services and capital improvements and for a source of revenue to finance such services and improvements,” reads Ordinance 2017-39.
Title 26, Chapter 75, Subchapter 3 of the Arkansas Code of 1987 Annotated provides for the level of a one-percent citywide sales and use tax.
“Under the authority of the authorizing legislation, there is hereby levied a one-percent tax on the gross receipts from the sale at retail within the city and of all items which are subject to the Arkansas Gross Receipts Act of 1941, as amended and the imposition of an excide (or use) tax on the storage, use distribution or other consumption within the city of tangible personal property subject to the Arkansas Compensating Tax of 1949, as amended, at a rate of one percent of the sale price of the property or, in the case of leases or rentals, of the lease or rental price.”
The proposal calls for one-half of the one-percent sales and use tax to be levied for a period of five years, beginning on Jan. 1, 2018, and ending on Dec. 31, 2022. It would only be used to acquire, construct, repair, and/or improve streets, drainage structures and facilities for the police and fire departments, and the district courts.
“The remaining one-half of the one-percent sales and use tax described in Section One above shall be a permanent tax and shall be used for general expenses,” adds the proposed ordinance.
But even if the proposed ordinance would pass, the ultimate decision would be made by the voters of North Little Rock.
“This ordinance shall not take effect until an election is held on the question of levying the sales and use tax at which a majority of the electors voting on the question shall have approved the levy of the sales and use tax,” according to the proposal.
Ordinance 2017-39 will be on the council’s agenda as well as Ordinance 2017-40 which calls for a special election to be set up and held for the voters to decide on the one percent tax issue.
The ordinance calls for a special election to be held on Aug. 8 at which time the issue will be submitted to city voters.
“The question of levying the sales and use tax shall be placed on the ballot for the election,” according to the ordinance.