ORD NO 06-2012 ORDINANCE NO. 1
ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE LEVY OF A ONE
HALF OF ONE PERCENT (0.50 SALES AND USE TAX
WITHIN THE CITY OF VAN BUREN, ARKANSAS; AND
PRESCRIBING OTHER MATTERS PERTAINING THERETO.
WHEREAS, the City Council of the City of Van Buren, Arkansas (the "City has
determined that there is a need for a source of revenue to be used for the following: (a) to pay
and secure the repayment of bonds approved by the voters and issued by the City from time to
time to finance capital improvements, (b) for fire, police and other emergency services purposes,
(c) for park and recreational purposes and (d) for economic development purposes; and
WHEREAS, Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987
Annotated (the "Authorizing Legislation provides for the levy of a city -wide sales and use tax
at the rate of 0.125 0.25 0.5 0.75% or 1 or any combination thereof; and
WHEREAS, the City is currently levying a one percent (1 sales and use tax
under the authority of the Authorizing Legislation; and
WHEREAS, the City Council has proposed the levy of an additional city -wide
sales and use tax at the rate of 0.50% under the authority of the Authorizing Legislation, the net
collections of which will be used for the purposes described above;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Van
Buren, Arkansas:
Section 1. Under the authority of the Authorizing Legislation, there is hereby
levied a 0.50% tax on the gross receipts from the sale at retail within the City 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 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 0.50% of the sale price
of the property or, in the case of leases or rentals, of the lease or rental price (collectively, the
"Sales and Use Tax
Section 2. 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 for the following: (a) to pay and secure the repayment of bonds approved by the voters
and issued by the City from time to time to finance capital improvements, (b) for fire, police and
other emergency services purposes, (c) for park and recreational purposes and (d) for economic
development purposes. The levy of the Sales and Use Tax is not dependent on any bonds being
approved or issued and if no bonds are approved and issued, the net collections of the Sales and
Use Tax will only be used for the purposes described in clauses (b), (c) and (d) above.
Section 3. 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 for certain single transactions as
from time to time required by Arkansas statutes.
Section 4. All ordinances and parts thereof in conflict herewith are hereby
repealed to the extent of such conflict.
Section 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: t L 1 t 2012
AP eVED:
ATTEST:
(_€t.. r
City Clerk
(SEAL)
2