Tax & Accounting Blog

Proposed Temporary Rate Increase to Be Submitted to Arkansas Voters

Indirect Tax, Sales and Use Tax April 9, 2011

On April 4th Arkansas Governor Mike Beebe approved HJR 1001 which calls for a constitutional amendment to levy a temporary 0.5% sales and use tax to provide funding for state highways and bridges, county roads, bridges, and other surface transportation as well as other related projects. In order for the resolution to become effective it must be approved by a majority of voters at the next general election which will occur in November 2012. The tax, if approved, would be levied on all taxable sales except food and food ingredients and would be collected, reported, and paid in the same manner as the general sales and use tax. The temporary tax would then become effective July 1, 2013, would be collected over an approximate 10-year period and would terminate when there are no bonds outstanding to which tax collections have been pledged.