Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 6 - LOCAL TAXES (§§ 26-73-101 — 26-82-119) › Chapter 75 - MUNICIPAL SALES AND USE TAXES (§§ 26-75-101 — 26-75-801) › Subchapter 3 - SALES TAX FOR CAPITAL IMPROVEMENTS (§§ 26-75-301 — 26-75-321) › Section 26-75-308 - Special election to approve

(a)
(1)
On the date of the filing of a petition described in §
26-75-307(b)
or on the date of adoption of an ordinance levying a local sales and use tax for the benefit of the city, or within thirty (30) days following the filing of the petition described in §
26-75-307(b)
or adoption of the ordinance, the city by ordinance shall provide for the calling and holding of a special election on the question in accordance with §
7-11-201
et seq.
(2)
The special election shall be called for the next special election date under §
7-11-205
.
(3)
The governing body of the city shall notify the county board of election commissioners that the question has been referred to the vote of the people and shall submit a copy of the ballot title to the county board of election commissioners.
(b)
(1)
The ballot title to be used at the election shall be substantially in the following form:
"[ ] FOR adoption of a ............... percent (............... %) local sales and use tax within ............... (name of city)."
"[ ] AGAINST adoption of a ............... percent (............... %) local sales and use tax within ............... (name of city)."
(2)
The election shall be conducted in the manner provided by law for all other municipal elections unless otherwise specified in this subchapter.
(c)
(1)
The ballot title may also include an expiration date, and if adopted in this form, the tax shall cease to be levied on the date noted on the ballot.
(2)
The expiration date shall be the last day of a calendar quarter unless the proceeds are pledged for the payment of bonds, in which case the tax shall terminate as otherwise provided by law.
(3)
(A)
(i)
The governing body of a city may refer to the voters a change in the expiration date for the sales and use tax approved by the voters to extend the levy of the sales and use tax beyond the expiration date previously approved.
(ii)
The proposed expiration date shall be the last day of the last month of a calendar quarter.
(B)
If the governing body of a city refers a change in the expiration date for an existing sales and use tax levied under this subchapter to the voters, the governing body shall:
(i)
Notify the county board of election commissioners that the measure has been referred to the voters; and
(ii)
Submit a copy of the ballot title to the county board of election commissioners.
(C)
(i)
An election to change the expiration date for a sales and use tax levied under this subchapter shall be conducted in the manner provided by law for all other municipal elections.
(ii)
The results of the election under this subsection shall be certified, proclaimed, and subject to challenge under §
26-75-309
.
(D)
(i)
To extend the sales and use tax levied under this subchapter to a new expiration date, the city shall notify the Secretary of the Department of Finance and Administration of the new expiration date that was approved by the voters after publication of the proclamation has occurred and at least ninety (90) days before the current expiration date of the sales and use tax.
(ii)
The sales and use tax extended under this subdivision (c)(3) shall continue to be levied until the new expiration date.
(E)
If the voters do not approve a change in the expiration date for the sales and use tax levied under this subchapter, the sales and use tax shall continue to be collected until the expiration date previously approved by the voters.
(F)
An election to change the expiration date for a sales and use tax levied under this subchapter is not an election on the levy of the sales and use tax.
(d)
(1)
The ballot may indicate an effective date for the ordinance or petition or an effective date for the levy of the tax that is effective later than the effective date of the ordinance or petition under §
26-75-309(1)(D)(ii)
.
(2)
The effective date of the ordinance or petition or the effective date of the levy of the tax delayed under subdivision (d)(1) of this section shall be:
(A)
Stated in the ordinance or petition levying the tax and on the ballot; and
(B)
Scheduled on the first day of the first month of a calendar quarter.
(3)
The effective date of an ordinance or petition or a levy of the tax delayed under subdivision (d)(1) of this section shall not be delayed for more than thirty-six (36) months after the date the ordinance or petition would be effective under §
26-75-309(1)(D)(ii)
.
(e)
(1)
(A)
The ballot may also indicate designated uses of the revenues derived from the sales or use tax.
(B)
If the tax is approved, the proceeds shall only be used for the designated purposes.
(2)
The proceeds may be used for other designated purposes if the electors approve a change in the designated use of the revenues by vote under this subsection.
(3)
(A)
The governing body of a city may refer to the voters a change in the designated use of revenues derived from a sales or use tax that was approved by the voters.
(B)
If the governing body of a city refers a change in the designated use of revenues derived from a sales or use tax to the voters, the governing body shall:
(i)
Notify the county board of election commissioners that the measure has been referred to the voters; and
(ii)
Submit a copy of the ballot title to the county board of election commissioners.
(C)
(i)
An election to change the designated use of revenues derived from a sales or use tax shall be conducted in the manner provided by law for all other municipal elections.
(ii)
The results of an election under this subsection shall be certified, proclaimed, and subject to challenge under the procedures stated in §
26-75-309
.
(4)
If the voters approve a change in the designated use of revenues derived from a sales or use tax, the change in the designated use shall apply to all revenues collected on the first day of the calendar month following the expiration of the thirty-day challenge period under §
26-75-309
.
(5)
(A)
If the voters do not approve a change in the designated use of revenues derived from a sales or use tax, the tax shall continue to be collected, and the revenues derived from the tax shall continue to be used for the purposes indicated in the ballot for the tax.
(B)
An election to change the designated use of revenues derived from a sales or use tax shall not constitute an election on the levy of the tax.
(6)
Any city that has levied a local sales and use tax under this subchapter with a portion of the revenues derived from the tax pledged to secure lease rentals or bonds may not change the tax to reduce the pledge in favor of the lease or bonds.
Amended by Act 2021, No. 610,§ 36, eff. 1/1/2022.
Amended by Act 2019, No. 910,§ 4437, eff. 7/1/2019.
Acts 1975, No. 990, § 2; A.S.A. 1947, § 19-4514; Acts 1991, No. 765, § 18; 2005, No. 1269, § 2; 2005, No. 2145, § 72; 2007, No. 116, § 7; 2007, No. 1049, § 94; 2009, No. 382, § 2; 2009, No. 957, § 3[4]; 2009, No. 1480, § 113.