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ORD NO 07-2005 ORDINANCE NO. 7 -2005 AN ORDINANCE PROVIDING FOR THE LEVY OF A NEW ONE -HALF OF ONE PERCENT (0.5 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 the City is in need of an additional source of revenue for general operations of the City and other purposes of City government; 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 or taxes at the rate of 0.125 0.25%, 0.5 0.75% or 1 or any combination thereof; and WHEREAS, the City is proposing to levy a sales and use tax at the rate of 0.5% under the Authorizing Legislation; 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 new 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 a new excise (or use) tax on the storage, use, distribution or other consumption within the City of tangible personable property subject to the Arkansas Compensating Tax Act of 1949, as amended (A.C.A. §26 -53 -101, et. seq.), at a rate of 0.5% 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 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 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 by the City for general operations of the City and other purposes of City government. Section 3. All ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 4. 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. PASSED: April 18, 2005. APPROVED: ATTEST: (u/2 �c.a) M a r City Clerk (SEAL) 2