State of Arkansas 

Type of levy: _---=:clo:::..:c~a:.:..l =Sa:::..:l.::::;es::..a:::.:n~d::...:::.U.:::..:se=-T.!.!a~x~- Jurisdiction: _ ...;;; S....:.IJlervl __.;__lA~·~~--­

Enactment Date: 1} /1.. I g 3 Ordinance No. _....._1 ...... /-==g'---- Tax Rate: __ /_W~­

PurposeandUseofTax: ~O~F~~~~~~~S~~~~~~~~~~~~~~-~----~ 

Applicability of Tax: General sales & use tax- Applies to all 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 o@.L If No, state reason 

for belief that the tax is grandfathered. 

No ~bsl;YI:tive ~ tom on§in.:<l Wij· 

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

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

to this tax that could affect grandfathered status. 

).2-)?/JS 

Date 7 7 
' 

I 

I 

I 

' 

ORDINANCE NO. 118 

AN ORDINANCE PROVIDING FOR THE LEVY OF A LOCAL 

SALES AND USE TAX AT THE RATE OF ONE PERCENT 

(1%) ON RECEIPTS FROM RETAIL SALES WITHIN THE 

CITY OF SALEM, ARKANSAS; PROVIDING FOR THE 

LIMITATION OF TAXES IN EXCESS OF TWENTY-FIVE 

DOLLARS ($25.00) PAID TO THE CITY ON A SINGLE 

TRANSACTION; PROVIDING FOR A SPECIAL ELECTION 

ON JULY 12, 1983; PROVIDING THE EMERGENCY 

CLAUSE AND FOR OTHER PURPOSES. 

WHEREAS, There is a great need for immediate improvement 

of municipal services and a stable source of revenue to finance 

such vital local government services, and 

WliEREAS, Act 25 of 1st Extraordinary Session of 1981, 

provides for the local option of adoption of a city wide sales 

and use tax. 

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF 

THE CITY OF SALEM, ARKANSAS : 

Section 1. Le~ of Sales Tax and Use Tax. As authorized 

by Act 25 of 1st ExtraoTinary Session of 1981, there is ~ereby 

levied a sales and use tax at the rate of one percent (1%) on 

the receipts from the sale at retail wi~hin the city of Salem, 

Arkansas, on all suc:l items which are subject to taxation under 

the Arkansas Gross Receipts Tax Act, Act 386 of 1941 of the 

Acts of Arkansas, as amended. 

Section 2. Single Transaction Limitation. Any municipal general sales ana or use tax levied pursuant to Act 25 of 

the 1st Extraordinary Session of 1981 shall be levied and collected only to a maximum tax of $25.00 on each singlP transaction, 

and vendors shall be responsible for collecting and remitting 

the tax only to the maxittJ.m of $25.00 for each single transaction. 

. Section 3. Single Transaction Definition. A single , transaction shall be defined as any retail sales which are subject 11 to a general sales and or use tax pursuant to present Arkansas 

Law which takes place within a single 24 hour period. 

Section Lj.. Purposes. 

enactment of said sales and use 

used for the following purposes 

Street Fund 55io 

All revenues generated from the 

tax shall be appropriated and 

and in the following proportions: 

Industrial Development - Capital Improvements 20% 

Police Department 15% 

Fire Deparrrnent 10% 

Section 5. Special Election. Said question of the leVy 

of a sales and use tax as provided in Section 1 hereof shall be 

Rllhmit:t:Pcl ro :'1 Vt1t"P nf t'hP ,....it"i7.Pn:r;:; n.P ~::J1Pm Ark.<~n.<=L~~ hv 
/ 

/ 

I 

•• 

,. 

' 

vital municipal services, and this ordinance being necessary for 

the preservation of the health, safety and welfare of the citizens of Salem, Arkansas shall become law immediately upon its 

passage, approval and publication. 

Passed and approved this /~· day of May, 1983. 

/ I 

"c.------ -- ~ "/ 

ATTEST, City 

·j(~ Clerk 

7Ylc C~