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 74 - COUNTY SALES AND USE TAXES (§§ 26-74-101 — 26-74-615) › Subchapter 3 - SALES TAX FOR CAPITAL IMPROVEMENTS (§§ 26-74-301 — 26-74-321) › Section 26-74-313 - Disposition of funds

(a)
The Secretary of the Department of Finance and Administration shall maintain a record of the total amount of tax collected pursuant to this subchapter and other subchapters authorizing county sales and use taxes in each county. The secretary shall determine the population of the unincorporated area of each of the counties and shall furnish the information to the Treasurer of State.
(b)
Except as set forth in subsections (c), (e), and (f) of this section, any tax collected by the secretary under this subchapter on behalf of any county shall be deposited with the Treasurer of State in trust and shall be kept in a separate suspense account.
(c)
Any moneys collected by the secretary, as indicated by a certified copy of an ordinance of the quorum court of the county, previously filed with the secretary and the Treasurer of State, which are pledged to secure the payment of lease rentals or bonds authorized by this subchapter shall not be deposited into the State Treasury but shall be deposited by the Treasurer of State into banks designated by the county, as cash funds, and transmitted to the county subject to the charges payable to the State of Arkansas set forth in subsection (d) of this section. Charges deducted shall be transmitted to the Treasurer of State.
(d)
(1)
The Treasurer of State shall transmit to the treasurer or financial officer of each city and county its per capita share, after deducting the amount required for claims, overpayments, and bad checks, as certified by the secretary.
(2)
(A)
Except as is otherwise provided in subdivision (d)(8) of this section, the last official federal decennial census or later special census that included the county as a whole shall be used in computing the per capita share that each city and county shall receive from the proceeds of the tax. Every county that is petitioned by, and city or town located in that county for, a countywide special census to be conducted shall request a countywide special census on the condition that the city or town requesting the census post adequate bond with the county clerk to cover the cost of the census. Further, the cost of conducting the census shall be borne by the several taxing units within the county in the same proportion that they will receive an increase in the distribution of a countywide sales tax as a result of the special census.
(B)
However, in the case of those counties in which an official census has been conducted in a municipality therein since the last federal decennial census and before April 7, 1987, the proceeds from the countywide sales tax shall continue to be distributed in the manner and under the same formula as was used for the distribution of funds prior to April 7, 1987, until such time as a countywide census is conducted in that county.
(3)
Transmittals shall be made at least quarterly in each fiscal year. Funds so transmitted may be used by the cities and counties for any purpose for which the city's general funds or county's general funds may be used. Before transmitting these funds, the Treasurer of State shall deduct three percent (3%) of the sum collected as a charge by the state for its services specified in this subchapter, and the amount so deducted shall be deposited by the Treasurer of State to the credit of the Constitutional Officers Fund and the State Central Services Fund or to any successor State Treasury fund or funds established by law to replace the Constitutional Officers Fund and the State Central Services Fund.
(4)
The secretary is authorized to retain in the suspense account a balance not to exceed five percent (5%) of the amount remitted to the local governments. The secretary is authorized to make refunds from the suspense account of any overpayments made and to redeem dishonored checks and drafts deposited to the credit of the suspense account.
(5)
When any tax adopted pursuant to this subchapter is thereafter abolished, the secretary shall retain in the suspense account for a period of one (1) year five percent (5%) of the final remittance to the local governments at the time of termination of collection of the tax to:
(A)
Cover possible refunds for overpayment of the tax; and
(B)
Redeem dishonored checks and drafts deposited to the credit of the suspense account.
(6)
After one (1) year has elapsed after the effective date of the abolishment of the tax, the secretary shall remit the balance of the suspense account to the governing bodies of the cities and counties and close the suspense account.
(7)
The restriction of the use of the last federal decennial census referred to in this subsection shall not apply in the case of annexation, nor shall it affect the taking of a special census for any purpose other than the distribution of a countywide sales tax.
(8)
(A)
It is the intention of this subsection that the proceeds from the countywide gross receipts tax shall be allocated and distributed to each county and the municipalities therein on the basis of the last federal decennial census or the last countywide special census, whichever is the most recent.
(B)
If a municipality incorporates during a year in which a federal decennial census is conducted, then for purposes of this section and until data from a federal decennial or special census is made available to the municipality, the population of the municipality shall be based on the most recent federal decennial census as calculated by the Arkansas Geographic Information Systems Office.
(e)
(1)
Except for revenue collected under subdivision (e)(2) of this section, money collected that is derived from a tax on aviation fuel levied by a county where a regional airport as described by the Regional Airport Act, §
14-362-101
et seq., is located shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the regional airport located within the levying city and county and transmitted to the regional airport, subject to the charges by the state for its services as specified in this section.
(2)
Revenue derived from a tax on aviation fuel in effect on December 30, 1987, is not subject to this subsection.
(f)
Money collected that is derived from a tax on aviation fuel levied by a county that is not dedicated to a specific purpose and may legally be used for any lawful purpose shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the county and transmitted directly to the publicly owned airport where the aviation fuel was sold, subject to the charges by the state for its services as specified in this section.
Amended by Act 2021, No. 438,§ 2, eff. 3/24/2021.
Amended by Act 2019, No. 910,§ 4388, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4387, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4386, eff. 7/1/2019.
Acts 1981, No. 991, § 10; 1983, No. 725, § 3; A.S.A. 1947, § 17-2019; Acts 1987, No. 688, § 1; 1987 (1st Ex. Sess.), No. 2, § 1; 1987 (1st Ex. Sess.), No. 56, § 1; 1991, No. 765, § 13; 1997, No. 1176, § 7; 2007, No. 166, § 3; 2009, No. 840, §§ 3, 4.