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 82 - LOCAL SALES AND USE TAX ECONOMIC DEVELOPMENT PROJECT FUNDING ACT (§§ 26-82-101 — 26-82-119) › Section 26-82-106 - Abolition of tax

(a)
(1)
Except under subsection (b) of this section, the levying entity may abolish all or a portion of the local sales and use tax authorized under this chapter by:
(A)
A roll call vote of two-thirds (2/3) of all members elected to the governing body of the levying entity, excluding the mayor and county judge, if the governing body of the levying entity has determined that the purposes of the local sales and use tax cannot be fulfilled or cannot continue to be fulfilled; or
(B)
An election called by:
(i)
Action of the governing body of the levying entity; or
(ii)
A petition of the qualified voters in the levying entity.
(2)
A petition of the qualified voters and the calling and holding of an election concerning the abolition of the local sales and use tax under this subsection are governed by the initiative procedures in Arkansas Constitution, Article 5, § 1, and any ordinances of the levying entity governing initiative procedures.
(3)
The governing body of the levying entity may call for an election under this subsection subject to the same procedures stated in this chapter for the calling of the initial election.
(4)
(A)
The ballot title for use in an election under this subsection shall be in substantially the following form:
"[ ] FOR abolition of the ............... percent (...............%) local sales and use tax within ............... (name of local entity) for economic development projects."
"[ ] AGAINST abolition of the ............... percent (...............%) local sales and use tax within ............... (name of local entity) for economic development projects."
(B)
However, a ballot title that contains a question for qualified voters on whether to continue the levy of a local sales and use tax complies with this subdivision (a)(4).
(b)
(1)
In a levying entity in which a local sales and use tax has been adopted under this chapter and all or a portion is pledged to secure the payment of bonds, the portion of the local sales and use tax pledged to the payment of bonds shall not be repealed, abolished, or reduced while the bonds are outstanding.
(2)
The bonds are not outstanding to the extent that sufficient tax revenues have been set aside to pay the bonds when due.
(c)
The effective date of an affirmative vote of the qualified voters to abolish the local sales and use tax under subsection (a) of this section shall be the first day of the calendar quarter after the expiration of ninety (90) days from the date of publication of the election proclamation.
(d)
(1)
The effective date of an affirmative vote by the governing body of the levying entity to abolish the local sales and use tax under subsection (a) of this section shall be on the first day of the calendar quarter after the expiration of ninety (90) days from the date a written statement signed by the mayor or county judge of the levying entity abolishing the tax is filed with the Secretary of the Department of Finance and Administration certifying that the governing body of the levying entity has adopted an ordinance abolishing the local sales and use tax.
(2)
A copy of the ordinance abolishing the local sales and use tax shall be attached to the certificate.
Amended by Act 2019, No. 910,§ 4473, eff. 7/1/2019.
Acts 2011, No. 828, § 1.