§ 14-164-338 - Alternative to issuance of bonds. - Arkansas Statutes

14-164-338. Alternative to issuance of bonds.

(a) If a legislative body determines that a sales and use tax of one percent (1%) or less authorized by 14-164-327 would, if levied for no longer than twenty-four (24) months, produce sufficient revenue to finance capital improvements of a public nature without resorting to a bond issue, the legislative body may dispense with the issuance of bonds, levy the tax for no longer than twenty-four (24) months, and appropriate the resulting revenues, subject to the Arkansas Constitution, Article 12, 4, paragraphs 2-4, provided:

(1) A majority of the qualified electors of the county or municipality voting on the question at a general or special election shall have approved the tax and the purpose of the capital improvements; and

(2) The revenues from the tax are expended solely for the purpose authorized by the electorate.

(b) The portion of the tax authorized by 14-164-327 which is not utilized under this section may be used as otherwise provided in this subchapter.

(c) The provisions of this section shall not preclude or affect the ability of a municipality or county to levy a sales and use tax beyond the twenty-four-month-period, unless so restricted on the ballot, or for less than the twenty-four-month-period, if stated on the ballot, under 26-74-201 -- 26-74-223, 26-74-301 -- 26-74-319, 26-75-201 -- 26-75-223, and 26-75-301 -- 26-75-318 and use all or a portion of the proceeds thereof to finance capital improvements of a public nature, with or without issuing bonds and with or without an election approving the use of the tax collections for capital improvements.

(d) The purpose of this subsection is to clarify that this section does not now, as amended, nor did it previously, limit the authority of municipalities and counties to levy taxes for twenty-four (24) months only under 26-74-201 -- 26-74-223, 26-74-301 -- 26-74-319, 26-75-201 -- 26-75-223, and 26-75-301 -- 26-75-318 and use the proceeds thereof to finance capital improvements, and the General Assembly hereby finds and determines that 26-74-201 -- 26-74-223, 26-74-301 -- 26-74-319, 26-75-201 -- 26-75-223, and 26-75-301 -- 26-75-318 each provide for the levy of up to a one percent (1%) sales and use tax and the use thereof for any purpose for which the general funds of the municipality or county may be used unless restricted on the ballot to a specified purpose.

(e) The revenues derived from this tax may also be used to retire existing bonds issued for the acquisition, renovation, or construction of capital improvements.