Opinion ID: 1940508
Heading Depth: 1
Heading Rank: 8

Heading: City of Denham Springs Tax

Text: On July 27, 1992, an ordinance was adopted by the Denham Springs City Council enacting a one and one-half percent (1.5%) sales tax. The ordinance specifically provides for revenues derived from the tax to be used as follows: Revenues derived from said sales and use taxes to be dedicated and used (after paying reasonable costs and expenses of administering the taxes) to be used (sic) to fund the construction and acquisition of essential improvements to the City's sewerage collection and treatment system. We note that the ordinance provides that only .5% of the tax is specifically dedicated to the use of improvement to the City's sewerage system. However, the remaining 1.0% of the tax reverts to the general fund and is not specifically dedicated to an enumerated purpose. Thus, 1% of the revenues is not restricted to any enumerated purpose and may be used for other purposes such as economic development.