ORD NO 03-2006 ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE LEVY OF A
ONE -HALF OF ONE PERCENT (0.5 %)SALES AND USE
TAX WITHIN THE CITY OF VAN BUREN, ARKANSAS
FOR A PERIOD OF SIXTEEN (16) MONTHS FOR THE
PURPOSE OF FINANCING THE COSTS OF LIBRARY
FACILITIES; PRESCRIBING OTHER MATTERS
PERTAINING THERETO_
WHEREAS, the City Council of the City of Van Buren,
Arkansas (the "City has determined that there is a great need for
a new stable source of revenue for sixteen (16) months to finance
the cost of library facilities, including particularly, without
limitation, acquiring, constructing, equipping and furnishing
library facilities, and any necessary land acquisition and parking,
street, drainage and utility improvements related thereto or in
support thereof (collectively, "Library Facilities and
WHEREAS, the City has outstanding its Sales and Use Tax
Bonds, Series 2005 (the "Series 2005 Bonds and
WHEREAS, the Series 2005 Bonds were issued to finance
all or a portion of the costs of Library Facilities, and are
secured by and payable from collections of a one -half of one
percent (0.5 local sales and use tax within the City levied
pursuant to Ordinance No. 20 -2005 of the City adopted August 15,
2005 (the "2005 Tax and
WHEREAS, A.C.A. §14- 164 -327 and 338 (Repl. 1998)
(collectively, the "Authorizing Legislation provide for the levy
of 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 or one
percent (1 to finance capital improvements of a public nature for
a period of no longer than twenty -four (24) months, without
resorting to a bond issue; and
WHEREAS, the 2005 Tax will expire when there are
sufficient funds to pay the principal of and interest on the Series
2005 Bonds when due; and
WHEREAS, the City proposes to levy a one -half of one
percent (0.5 sales and use tax for the purpose of financing the
acquisition, construction, equipping and furnishing of Library
Facilities, in lieu of the City's authority to levy a one -half of
one percent (0.5 sales and use tax under A.C.A. §14-164-327
(Repl. 1998) solely for the purpose of retiring bonds; and
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WHEREAS, the Library Facilities constitute capital
improvements of a public nature as defined in A.C.A. X14-164
303(a) (2) (Repl. 1998); and
WHEREAS, all or a portion of the Library Facilities to
be financed with collections from the one -half of one percent
(0.5 levied hereby will include the Library Facilities being
financed by the Series 2005 Bonds and the collections of the tax
will supplement the funds raised from the sale of the Series 2005
Bonds; and
WHEREAS, the City Council has determined that the one
half of one percent (0.5 city -wide sales and use tax levied for
sixteen (16) months will produce revenues sufficient, along with
other available revenues, to finance the Library Facilities without
resorting to another bond issue; and
WHEREAS, the one -half of one percent (0.5 sales and
use tax levied hereby will not take effect until the 2005 Tax is
terminated;
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 one -half of one percent
(0.5%) 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 one
half of one percent (0.5 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 the State of Arkansas deducts
its administrative charges shall be used solely, for the purpose of
acquiring, constructing, equipping and /or furnishing Library
Facilities.
Section 3. The effective date of the Sales and Use Tax
will be the day following the date the 2005 Tax expires. The Sales
and Use Tax shall be levied only for a period of sixteen (16)
months. At the end of the sixteen month period, the levy of the
Sales and Use Tax shall terminate without any further action on the
part of the City or its residents.
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Section 4. The Sales and Use Tax will be levied and
collected on the gross receipts, gross proceeds or sales price for
each single transaction in the maximum amount allowed from time to
time by Arkansas law.
Section 5. All ordinances and parts thereof in conflict
herewith are hereby repealed to the extent of such conflict.
Section 6. 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: _Mel. lc 2006.
APPROVED:
ATTEST:
6 Calt
City Clerk
(SEAL)
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