Bill > SB394

This bill amends Arkansas law regarding county sales and use taxes for capital improvements by making several key changes. First, it allows counties to refer to voters potential changes in how sales and use tax revenues are allocated or distributed among the county and its municipalities. The bill specifies that if voters approve such changes, the county must notify the State Treasurer at least 90 days before the new allocation becomes effective. Additionally, the bill prohibits municipalities from pledging revenues from these specific sales and use taxes to repay bonds, which is a new restriction. The legislation also clarifies that while counties can use these tax revenues for general purposes (subject to any original ballot designations), they cannot change the purpose of the tax in a way that would reduce existing pledges for lease rentals or bonds. The bill provides a structured process for proposing and voting on changes to tax revenue use, ensuring transparency and voter input in local fiscal decisions.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=sb394&ddBienniumSession=2025%2F2025R