There are three amendments appearing on the upcoming Nov. 3 ballot that have been referred to the voters from the Arkansas General Assembly.
Question No. 1 on the ballot, is today's topic.
An amendment, known as Issue No. 1, is to continue the collection of a 0.5% sales tax -- that same 0.5% sales tax (or commonly known as one-half-cent sales tax) the state is now collecting for state highways and bridges, county roads and bridges and city streets and bridges and other surface transportation spending.
This is NOT (my emphasis) a new tax. It is a continuation of a 0.5% tax levied earlier by voters which was used to retire bonds to repair highways, roads, bridges and fund other surface transportation needs in the state.
The Arkansas Legislature referred this question from the Regular 2019 Session of the General Assembly.
Issue No. 1 asks the question, as follows:
A "Yes" or "For" vote will continue the tax, as currently collected under Amendment 91.
A "No" or "Against" vote will discontinue the tax, per Amendment 91, when the collections reach the collection amounts to pay off or retire the bonds issued previously by the State Highway and Transportation Department.
If approved, the continuation of the 0.5% sale tax will take place when the funds to retire the existing bonds have been paid in full.
This 0.5% tax DOES NOT (my emphasis) apply to the purchase of food, food ingredients (i.e. groceries).
This tax will be levied on all taxable sales of tangible personal property, specified digital products and digital code and services that are taxable under current Arkansas Code.
The tax shall be collected, reported and paid in the same manner and at the same time period as set by law on other sales tax and use tax requirements.
The proposed continuation of the 0.5% sales tax, according to an impact statement from the Arkansas Department of Revenue, will generate an estimated $293.7 million each year.
One change, the tax will be distributed to three separate entities as set by Arkansas law.
The State Highway and Transpiration Department Fund will receive the lion's share of the monies collected or an estimated $205.6 million.
The County Aid Fund (for all 75 counties) and the Municipal Aid Fund (for all cities in Arkansas) will receive equal percentages of the 0.5% funds or an estimated $44 million for each subdivision -- $44 million to counties and $44 million to cities.
Washington County and Benton County, for example, will receive a share of the $44 million allocated to all the state's 75 counties. The exact amount will be based upon each county's population.
All cities in Washington County and Benton County, eligible under state law to receive turnback funds from the state, will also receive their share of the $44 million given to all the state's cities eligible for funds from the City Fund.
Each municipality eligible for funds will receive the tax funds based on the population of the city.
No revenue received under this amendment shall be used to secure bonds issued by the Arkansas Highway Commission.
This amendment was proposed by State Representative Jeff Wardlaw of Warren as HJR 1018.
Again, this will be Issue No. 1 and will be a "For" or "Against" issue.
Gov. Asa Hutchinson, the Arkansas State Chamber of Commerce, the Arkansas Good Roads Council, the Arkansas Municipal League, and the Arkansas Farm Bureau have, in their various forums, endorsed passage of this proposal.
Next Week: Issue No. 2 -- Term Limits
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MAYLON RICE IS A FORMER JOURNALIST WHO WORKED FOR SEVERAL NORTHWEST ARKANSAS PUBLICATIONS. HE CAN BE REACHED VIA EMAIL AT [email protected]. OPINIONS EXPRESSED ARE THOSE OF THE AUTHOR.