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 4 - SALES AND USE TAX FOR COUNTIES WITHOUT EXISTING TAX (§§ 26-74-401 — 26-74-414) › Section 26-74-409 - Disposition of funds

(a)
(1)
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 all other subchapters authorizing a county sales and use tax in each county and shall deposit all such revenues with the Treasurer of State.
(2)
(A)
Upon receipt of the funds, the Treasurer of State shall deduct three percent (3%) thereof as a charge by the state for its services as specified in this subchapter and shall credit the three percent (3%) to the Constitutional Officers Fund and the State Central Services Fund.
(B)
In addition, the Treasurer of State is authorized to retain in the Local Sales and Use Tax Trust Fund an amount not to exceed five percent (5%) of the total amount received from the tax levied by each county, to be used by the Treasurer of State to:
(i)
Make remittances to the county for rebates made by the county for taxes in excess of amounts specified by the particular county ordinances paid by a taxpayer on a single transaction;
(ii)
Make refunds for overpayment of the taxes; and
(iii)
Redeem dishonored checks and drafts received and deposited into the Local Sales and Use Tax Trust Fund.
(3)
Furthermore, the Treasurer of State shall determine which cities or towns within the county do not levy a local sales tax and remit to those cities or towns a percentage of the tax based upon the population of the city or town versus the population of the county.
(b)
(1)
Except as set forth in subsections (g) and (h) of this section, all funds received by the Treasurer of State from the sales tax levied by each county, after deducting the amounts required by subsection (a) of this section, shall be credited to the account of the county where collected.
(2)
(A)
The Treasurer of State shall monthly transmit to the county treasurer the moneys received by the Treasurer of State from the sales tax levied by such county and credited to the account of the county in the Local Sales and Use Tax Trust Fund.
(B)
The county treasurer of any county which has levied a sales tax pursuant to this subchapter and which rebates taxes paid on a single transaction in excess of a specified amount shall monthly certify to the Treasurer of State the total amount of rebates paid since the preceding certification, and the Treasurer of State shall remit that amount to the county treasurer from the Local Sales and Use Tax Trust Fund.
(c)
Funds received by the counties pursuant to the provisions of this subchapter may be used by the counties for any purpose for which the county general fund or county road fund may be used, including allocating portions to municipalities located therein.
(d)
The Treasurer of State is authorized to make refunds for overpayment of the county sales tax and to redeem dishonored checks and drafts issued in payment of the county sales tax from the Local Sales and Use Tax Trust Fund.
(e)
When any tax adopted by a county pursuant to this subchapter ceases, the secretary shall retain in the account of that county in the Local Sales and Use Tax Trust Fund for a period of one (1) year an amount equal to five percent (5%) of the final remittance to the county and municipalities therein at the time of termination of the collection of the tax to:
(1)
Cover possible rebates by the county;
(2)
Cover refunds for overpayment of taxes; and
(3)
Redeem dishonored checks and drafts deposited to the credit of the Local Sales and Use Tax Trust Fund.
(f)
After one (1) year has elapsed after the tax ceases in any county, the secretary shall transfer the balance in that county's account to the county and shall close the account.
(g)
(1)
Except for revenue collected under subdivision (g)(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 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 section.
(h)
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 2019, No. 910,§ 4400, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4399, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4398, eff. 7/1/2019.
Acts 1991, No. 885, § 1; 1997, No. 1176, § 8; 2007, No. 166, § 4; 2009, No. 840, §§ 5, 6.