State of Arkansas 

Jurisdiction: L 0 t/ {l f c fou II fv Type of Levy: Local Sales and Use Tax 

Enactment Date: f _, /--& s- Ordinance No. 3 ~ / 1(/ .c::-"5 Tax Rate: / (<., 

PurposeandUseofTax: 

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<Zs-~bl,·~ f,{ ~ ;s,_s/-e-rr--,. '<" r · f.e. f.-x/r· frc-c "'rrd 

Pvt r· r ;; · oj 11 I Applicability of Tax: General 

, sales & use tax- Applies to afl goods and services taxable under state law. 

Administrative Costs: 3% of gross collections withheld by the state for administration of the tax. 

Credits or Exemptions: Tax subject to same credits & exemptions available under state sales & use tax law 

Subsequent Amendments and Amendment Purpose: 

1. Date: ---------- Amending Ordinance No.-----------

Purpose of Amendment: 

2. Date: ---------- Amending Ordinance No.-----------

Purpose of Amendment: 

3. Date: ---------- Amending Ordinance No.-----------

Purpose of Amendment: 

4. Date: ---------- Amending Ordinance No.-----------

PurposeofAmendment: --------------------------

Is the tax on aviation fuel distributed for airport related purposes: Yes or No Hu If No, state reason 

for belief that the tax is grandfathered. 

Levy Hoi- 51~ 6-sfa o,'cJ2y C lv~ d 

Arkansas 

The state 

Department 

of Arkansas administers local taxes for all cities and counties in this state and commits that the 

of Finance and Administration will notify the FAA of any subsequent amendments 

to this tax that could affect grandfathered status. 

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Date ohn H. Theis, Assistant Revenue Commissioner 
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RECEIVED 

MAY 2 8!985 

S,~LES TAX 

BE IT ENACTED BY THE QUORUM COURT 

OF LONOKE COUNTY, STATE OF ARKANSAS, 

AN ORDINANCE TO BE ENTITLED: ORDINANCE NO. -~3e::~l9~B~5c__ 

AN EMERGENCY ORDINANCE TO LEVY A 

ONE PERCENT (1%) COUNTY SALES AND 

USE TAX: TO ESTABLISH A SYSTEM FOR 

THE REBATE REQUIRED BY ACT 26 OF 

1981: TO DEFINE "SINGLE TRANSACTION": 

AND FOR OTHER PURPOSES 

ARTICLE 1: The1:e is heTeby levied a county-wide (excise) sales 

tax of one per centum (11'.} upon tl1e gross receipts from the sale at 

retail within the county on or after ~ .. \'\ \ , t9B5, of nll 

items which aTe now subject or may heTeaftel· be subject to the 

Arkansas Gross Receipts Tax, as provided by Arkansas Act 26 of 

1981, First Extraordinary Session, as amended~by 

ARTICLE 2. There is hereby levied a county-wide (excise) use 

tax upon the storage, use or consumption within Lonoke County, Arkansas 

of tangible personal property purchased, leased or rented- £tom any 

retailer outside the State on or after .J 'I\'\ \ t 1985, 

for storage, use or other consumption in Lonoke County, Arkansas; 

at rate of one percent {1%) of the sale price of the property or, 

in the case of leases or rentals of said lease or rental price, as 

provided by Arkansas Act 26 of 1981, First Extraordinary Session, 

as amended,. b!PARTICLE 3. The levy, exemption from and collection of the county11i.de sales tax and the county-wi"de use tax imposed by this ordinance 

shall be made in accordance with, (a) all applicable definitions and 

other provisions of the Arkansas Gross Receipts Tax Act, as amended; 

and tl1e Arkansas Compensating Tax Act (Use Tax), as amended, except 

that the definition of single tnmsaction ns set out herein shall 

apply; (b) the existing rules and regulations pertaining to the 

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Arkansas Gross Receipts Tax and the Arkansas Compensating Tax 

as promulgotCd by the Deportment of Pinance and Administration, 

Division of Revenues, State of Arkansas; and (c) the provisions 

of Act 26 of 1981, FirSt Extraordinary Session, as amended .U' 

ARTICLE 4, Taxes levied and collected under this ordinance 

should be levied and collected only to a maximum tax of Twenty-five 

Dollars ($25.00) on each single transaction, and vendors shall be 

responsible for collecting and remitting the tax only to the maximum 

of Twenty-five Dollars ($25,00) on each single transaction. Vendors 

collecting, reporting and remitting such county-1~ide sales and/or 

use taxes should show county-wide sales taxes as a separate entry 

on the tax report form filled with the commissioner of revenue. 

ARTICLE 5. The term "single transaction" for the purpose of 

the county sales tax under this ordinance, shall be defined according 

to the nature of the good purchased, as follows: 

(a) \~hen two or more devices in which, "upon which or by which 

any person or property is, or may be, transported or drawn, including 

but not limited to on road vehicles, whether required to be licensed 

or not, off road vehicles, farm vehicles, airplanes, water vessels, 

motor vehicles, or non-motorized vehicles, and mobile homes, are 

sold to a peraon by a seller, each individual unit, whether part of 

a "fleet" sale or not, shall be treated as a sir<gle transaction for 

the purpose of thia ordinance, and the maximum tax of Twenty-five 

Dollars ($25,00) set forth in Al"ticle 4 above shall be paid on each 

Individual unit as l"efert."ed to he~einabove; pt."ovided this p~ovision 

shall not apply to motor vehicles handled under Section 10 (b) of 

Act 26 of 1981, First Extraordinary Session, as amended.~ 

(b) The charges for utility services, which are subject to 

the taxes levied under this ordinance, and which are furnished on a 

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continuous service basis~ whether such services are paid daily, 

weekly, monthly or annually, for the purp~se of the maximum tox of 

Twenty~five Dollars ($25,00) set forth in Article 4 of this ordinance, 

shall be computed in monthly increments, and each such monthly charge 

increment shall be considered to be a single transaction for the 

purposes of this ordinance. 

(c) For sales of building me,terials and supplies to contractors, 

builders or other persons, a single transaction for the purpose of 

this ordinance, shall be deemed to be any single building structure 

including all structural components therein 11hich shall be confirmed 

by affidavit of the contractor, builder, or other person stnting that 

the purchases to be considered as a single transaction arc a part of 

a single building structure. 

(d) Hhen t110 or more items of major household appliances; 

commercial appliances; major equipment and machinery are sold, 

each individual unit shall be treated as a sihgle transection for 

the purpose of this ordinance. 

(e) For groceries, drug items, drug goods, and other tangible 

personal property and/or services not otherwise expressly covered in 

this section; a single transaction shall be deemed to be any single 

sale which is reflected on a single invoice, receipt or statement, 

on which an aggregate ~ales tax figure has been reported and 

rami t ted to the S tote. 

(f) Any taxpayer not subject to the levy of a use tax on 

tangible personal property brought into the State of Arkansas for 

storage until such property is subsequently initially used in the 

State of Arkansas, County Use tax shall be computed on each purchase 

of such property by said taxpayer as if all Such property was subject 

upon purchase to the County Use Tnx up to a r.~aximum of Twenty-five 

Dollars ($25.00) per single transaction. The taxes so computed ln 

the preceding sentence shall be aggregated on a monthly basis and such 

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aggregate monthly amount shall be divided by the sum of the total 

purchases of such property on which the taxes are computed and the 

quotient shall be multiplied by the amount of the taxpayer's property 

sub-sequently initially usod and subject to levy of a use tax within 

the munic.ip11Uty or county during the month for which the monthly 

aggregate tal: figure was computed, and the product shall be the 

amount of county usc tax liability for said tn:x: liability for said 

ta~payer for the month computed. 

ARTICLE 6, That for purposes of thO County Sales Ta:x: as i·· 

provided for in this Ordinance as nmended and as applied to the 

construction of any single family residential structure, the 

erection of which requires the issuance of n bul.lding permit from 

any of the Cities or County, a single transaction shall be considered 

to be the cou1pleted structure. The sales tax imposed by said Ordinance 

as amended shsll be levied based upon the final co-st of the materials 

purchased to build said said structure rather than upon the incremental 

sales of materials used in said construction. 

ARTICLE 7, Proceeds hom the County Sales Tax shall be dhtributed 

according to Act 26 of 1981, First Extraordinary Session, as amended, 

•j .. The portion of the County Sales 

Tax which is distributed to cities and towns in the County pursuant 

to Act 26 of 1981, Firat Extraordinary Session as amended 

i shall be used as determined by ssid city or town, The portion f.··. 

'·· distributed to the County government of Lonoke County shall he 

used with 757, of the amount received to be distributed to the Road· 

and Bridge Department; 237. of the amount received distributed for the 

pUrpose of County Sanitation and Garbage Disposal and 27. of the amourtt 

received distributed fol: the County Library. \.·· 
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ARTICLE 9. If any part of this ordinance is held invalid, such 

invalidity shall not affect any othor portion of this ordinance 

which can be made effective without invalidity. 

WllEREAS, the Citizens of Lonoke County approved a one~ccnt 

county·wide sales and use tax; the effective date of the county·wide 

sales ond use tax shall be 1985; the levy and 

collection of the county·wide sales and use tax is vitally important 

to the financial stability of Lonoke County and the well-being of its 

citizens; and the adoption of various procedures and definitions 

prior to the effective date is critical to the administration of the 

county-wide sales and use tax; 

An emergency is hereby declared to exist, and this ordinance, 

being necessnry.for the health, safety and welfare of the citi~ens 

of Lonolte County, shall be in full force and effect from the date of 

passage ll!ld approval • 

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