Arkansas Code of 1987 (2023) › Title 14 - LOCAL GOVERNMENT (§§ 14-1-101 — 14-387-706) › Subtitle 10 - ECONOMIC DEVELOPMENT AND TOURISM GENERALLY (§§ 14-163-201 — 14-176-113) › Chapter 164 - INDUSTRIAL DEVELOPMENT BONDS (§§ 14-164-201 — 14-164-821) › Subchapter 3 - LOCAL GOVERNMENT BOND ACT (§§ 14-164-301 — 14-164-342) › Section 14-164-339 - Simultaneous pledge of local sales and use tax

(a)
(1)
A municipality levying a local sales and use tax under §
26-73-113
, §
26-75-201
et seq., or §
26-75-301
et seq. may pledge, simultaneously with the levy, all or a specified portion of the tax to retire bonds for capital improvements or economic development projects.
(2)
The ballot form in a municipal election to levy a local sales and use tax pursuant to the provisions of §
26-75-208
, §
26-75-308
, or §
26-73-113
and to simultaneously pledge all or a specified portion of such tax to retire bonds as provided in this subchapter shall be headed with the question of approval or disapproval of such tax and shall be followed by the question or questions of the issuance of the bonds.
(3)
(A)
The question or questions of the issuance of bonds shall also contain a statement describing the extent to which the tax, if approved, may be pledged to retire the bonds which are approved by the voters of the municipality.
(B)
The local sales and use tax or taxes authorized in §
14-164-327
may also be pledged to bonds approved pursuant to this section, and in such case, the question or questions of the issuance of the bonds shall contain a statement to that effect.
(4)
The election shall be conducted as provided in §
14-164-309
, and the bonds shall be authorized, issued, and secured as provided in this subchapter.
(b)
(1)
A county levying a local sales and use tax under §
26-73-113
, §
26-74-201
et seq., §
26-74-301
et seq., or §
26-74-401
et seq. may pledge, simultaneously with the levy, all or a specified portion of the tax to retire bonds for capital improvements or economic development projects.
(2)
The ballot form in a county election to levy a local sales and use tax pursuant to the provisions of §
26-74-208
, §
26-74-308
, §
26-74-403
, or §
26-73-113
and to simultaneously pledge all or a specified portion of its share of such tax to retire bonds as provided in this subchapter shall be headed with the question of approval or disapproval of such tax and shall be followed by the question or questions of the issuance of the bonds.
(3)
(A)
The question or questions of the issuance of bonds shall also contain a statement describing the extent to which the tax, if approved, may be pledged to retire the bonds, which are approved by the voters of the county.
(B)
The local sales and use tax or taxes authorized in §
14-164-327
may also be pledged to bonds approved pursuant to this section, and in such case, the question or questions of the issuance of the bonds shall contain a statement to that effect.
(4)
The election shall be conducted as provided in §
14-164-309
, and the bonds shall be authorized, issued, and secured as provided in this subchapter.
(c)
In any municipality or county in which a local sales and use tax is adopted pursuant to §
26-75-201
et seq., §
26-75-301
et seq., §§
26-74-201
-
26-74-220
, §
26-74-301
et seq., §
26-74-401
et seq., or §
26-73-113
, respectively, and pledged to secure the payment of bonds as authorized by this subchapter, that portion of the tax pledged to secure the payment of bonds shall not be repealed, abolished, or reduced so long as any of such bonds are outstanding.
(d)
In any municipality or county in which a local sales and use tax is approved and the issuance of bonds disapproved in an election held pursuant to subsection (a) or subsection (b) of this section, revenues derived from such local sales and use tax may be utilized by the municipality or county for any valid governmental purpose.
(e)
(1)
Any moneys collected which, as indicated by a certified copy of an ordinance of the municipality or county previously filed with the Secretary of the Department of Finance and Administration and the Treasurer of State, are pledged, under the provisions of any act, to secure the retirement of bonds authorized by this subchapter, shall be transmitted by the secretary to the Treasurer of State.
(2)
The Treasurer of State shall not deposit any such moneys into the State Treasury or into general revenues, but shall hold such moneys apart in trust and shall deposit such moneys as cash funds into the Local Sales and Use Tax Trust Fund established by this subchapter.
(3)
The Treasurer of State shall transmit monthly to the treasurer of the municipality or county, as the case may be, or in the alternative, to a bank or other depository designated by the municipality or county, the moneys of the municipality or county held in the Local Sales and Use Tax Trust Fund established by this subchapter, subject to the charges payable and retainage authorized by §§
26-74-201
-
26-74-219
,
26-74-221
,
26-74-315
-
26-74-317
,
26-74-409
,
26-74-413
,
26-75-201
-
26-75-221
,
26-75-223
,
26-75-317
,
26-75-318
, and the Local Sales and Use Tax Economic Development Project Funding Act, §
26-82-101
et seq.
Amended by Act 2019, No. 910,§ 3391, eff. 7/1/2019.
Amended by Act 2017, No. 533,§ 17, eff. 8/1/2017.
Amended by Act 2017, No. 533,§ 16, eff. 8/1/2017.
Acts 1991, No. 646, § 3; 2001, No. 1168, § 3; 2011, No. 828, § 5.