§ 26-75-207 - Levying of tax. - Arkansas Statutes

26-75-207. Levying of tax.

(a) (1) The governing body of any city may adopt an ordinance levying 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%), one percent (1%), or any combination of these amounts for the benefit of the city in accordance with the provisions of this subchapter.

(2) Each local sales and use tax authorized under this subchapter shall be adopted by ordinance or by petition as described in subsection (b) of this section and with the approval of the voters of the municipality in accordance with this subchapter.

(b) (1) A legal voter of a city may file a petition with the governing body of that city requesting a special election on the question of levying a local sales and use tax authorized under this subchapter in an amount as provided in subdivision (a)(1) of this section.

(2) The petition shall be signed by a number of the legal voters in the city that is no less than fifteen percent (15%) of the number of votes cast for the office of city clerk at the last preceding general election.

(c) (1) The governing body of the city by such levying ordinance or the petition described in subsection (b) of this section is not required to but may provide for an expiration date for such local sales and use tax.

(2) If an expiration date is provided, that date shall be the last day of the last month of a calendar quarter.

(d) (1) The levying ordinance or the petition may indicate an effective date for the ordinance or petition that is effective later than the effective date provided in 26-75-209(1)(D)(ii).

(2) The effective date of the ordinance or petition delayed under subdivision (d)(1) of this section shall:

(A) Be scheduled on the first day of the first month of a calendar quarter; and

(B) Not be delayed for more than thirty-six (36) months after the date the ordinance or petition would be effective under 26-75-209(1)(D)(ii).

(e) The sales tax portion of any local sales and use tax adopted under this subchapter shall be levied by the governing body on the receipts from the sale at retail of all items and services that are subject to taxation under the Arkansas Gross Receipts Act of 1941, 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, 26-53-101 et seq.