ORDINANCE NO. 2008-6
BE IT ENACTED BY THE QUORUM COURT OF THE COUNTY OF CLEVELAND, STATE OF ARKANSAS, AN ORDINANCE TO BE ENTITLED:
AN ORDINANCE PROVIDING FOR THE LEVY OF A THREE-FOURTHS OF ONE PERCENT (0.75%) SALES AND USE TAX WITHIN CLEVELAND COUNTY, ARKANSAS; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO.
WHEREAS, the Quorum Court of Cleveland County, Arkansas (the “County”) has determined that there is a great need for an additional source of revenue to be used for one or more of the following: (a) to acquire, construct, improve, expand, equip, furnish, operate and maintain new or existing jail and criminal justice facilities and facilities related thereto or in support thereof (collectively, “Jail and Criminal Justice Facilities”), (b) to pay and secure the repayment of bonds approved by the voters and issued from time to time by the County to finance Jail and Criminal Justice Facilities (“Jail and Criminal Justice Facilities Bonds”) and (c) for other criminal justice purposes; and
WHEREAS, Title 26, Chapter 74, Subchapter 2 of the Arkansas Code of 1987 Annotated (the “Authorizing Legislation”) provides for the levy of county-wide sales and use taxes at the rate of 0.125%, 0.25%, 0.5%, 0.75% or 1%, or any combination thereof; and
WHEREAS, the purpose of this Ordinance is to levy a new County-wide sales and use tax at the rate of 0.75%, the net collections of which will be distributed only to the County and used for the purposes described above;
NOW, THEREFORE, BE IT ORDAINED by the Quorum Court of Cleveland County, Arkansas:
Article 1. Under the authority of the Authorizing Legislation, there is hereby levied a 0.75% tax on the gross receipts from the sale at retail within the County of all items which are subject to the Arkansas Gross Receipts Act of 1941, as amended (A.C.A. 26-52-101, et seq.), and the imposition of an excise (or use) tax on the storage, use, distribution or other consumption within the County of tangible personal property subject to the Arkansas Compensating Tax Act of 1949, as amended (A.C.A. 26-53-101, et seq.), at a rate of 0.75% of the sale price of the property or, in the case of leases or rentals, of the lease or rental price (the “Sales and Use Tax”). The Sales and Use Tax shall be levied, and the net collections received after the State of Arkansas deducts its administrative charges and required rebates (the “Net Collections”) shall be used, solely for one or more of the following: (a) to acquire, construct, improve, expand, equip, furnish, operate and maintain new or existing Jail and Criminal Justice Facilities, (b) to pay and secure the repayment of Jail and Criminal Justice Facilities Bonds and (c) for other criminal justice purposes. The Sales and Use Tax shall be levied and collected on the gross receipts, gross proceeds or sales price in the maximum amount allowed from time to time under Arkansas statutes, subject to rebates and limitations as required for certain single transactions as from time to time required by Arkansas statutes.
Article 2. The Net Collections shall be distributed only to the County and not to the municipalities therein.
Article 3. The provisions of this Ordinance are separable and if an article, phrase or provision shall be declared invalid, such declaration shall not affect the validity of the remainder of the Ordinance.
Article 4. All ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
Article 5. 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.
PASSED: February 4, 2008.
APPROVED: Gary Spears, County Judge
ATTEST: Sharon Gray, County Clerk