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AN ORDINANCE PROVIDING FOR THE LEVY OF A ONE-HALF PERCENT (0.50%) SALES AND USE TAX WITHIN THE CITY OF JONESBORO, ARKANSAS AND TO PROVIDE THAT ALL NET COLLECTIONS DERIVED FROM THE SALES AND USE TAX SHALL BE USED TO FUND THE ACQUISITIONS, IMPROVEMENTS OF A PUBLIC NATURE FOR THE CITY’S POLICE AND FIRE DEPARTMENTS, AND FOR THE OPERATION, MAINTENANCE AND STAFFING OF THE CITY’S POLICE AND FIRE DEPARTMENTS
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WHEREAS, the City Council of the City of Jonesboro, Arkansas (the “City”) has determined that the city is in need of an additional source of revenue for the purpose of acquiring, constructing, repairing, equipping, and improving capital improvements of a public nature, and to provide funds for the operation, maintenance, and staffing of the City’s Police and Fire Departments;
WHEREAS, Title 26, Chapter 75, Subchapter 3 of the Arkansas Code of 1987 Annotated (the “Authorizing Legislation”) provides for the levy of a City-wide sales and use tax or taxes at the rate of 0.125%, 0.2525%, 0.50%, 0.75%, or 1.00%, or any combination thereof; and
WHEREAS, the City is proposing to levy a new sales and use tax at the rate of one-half percent (0.50%), collections of which will be distributed to the City’s Police and Fire Departments for the purposes described above, under the Authorizing Legislation.
THEREFORE, BE IT ORDAINED by the City Council for the City of Jonesboro, Arkansas that:
SECTION ONE: Under the authority of the Authorizing Legislation there is hereby levied one-half percent (0.50%) tax on the gross receipts from the sale at retail within the City on all items which are subject to the Arkansas Gross Receipts Tax Act of 1941, as amended (A.C.A. 25-52-101, et seq.), and the imposition of an excise (or use) tax on the storage, use, distribution, or other consumption within the City 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 one-half percent (0.50%) of the sale price of the property or, in the case of leases or rentals, of the lease or rental after the State of Arkansas deducts its administrative charges of the State and required rebates (the “Net Collections”) shall be used to provide financial support for the following purpose: all Net Collections derived from the Sales and Use Tax shall be used to acquire, construct, repair, equip, and improve capital improvements of a public nature for the City’s Police and Fire Departments and to provide funds for the operation, maintenance and staffing of the City’s Police and Fire Departments. 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 Law, subject to rebates and limitations as required from time-to-time by Arkansas Statutes.
SECTION TWO: The Sales and Use Tax shall be levied, and the Net Collections received after deduction of the administrative charges of the State of Arkansas and required rebates shall be used by the City as provided in Section One of this Ordinance.
SECTION THREE: All ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
SECTION FOUR: This ordinance shall not take effect until an election is held on the question of levying the Sales and Use Tax, at which election a majority of the electors voting on the question shall have approved the levy of the Sales and Use Tax, upon such approval, the tax shall commence on June 1, 2020.