Ark. Code Ann. § 26-75-223 (2020)

Subchapter 3 — Sales Tax for Capital Improvements

Effective Dates. Acts 1975, No. 990, § 13: became law without Governor's signature, Apr. 10, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that cities of the class described herein are faced with financial crises with reference to having sufficient tax resources to provide municipal services to their inhabitants, that such cities in many instances compete with municipalities of other states which permit municipalities of such states to levy local sales and use taxes, that such cities are of sufficient size to have expertise in management of such tax revenues, and that such financial crises constitute such an emergency that the immediate passage of this Act is necessary in order to provide financial relief to such cities. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1981, No. 133, § 3: Feb. 20, 1981. Emergency clause provided: “It is hereby found and declared by the General Assembly that there is a great need for immediate improvement of municipal services and a stable source of revenue to finance such vital local government services. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the protection of the public peace, health and safety, shall take effect and be in full force immediately on its passage and approval.”

Acts 1981, No. 406, § 3: Mar. 11, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that a number of small cities and towns in this State located in counties adjoining the state line of another state in which is located a historic district and having tourism as the major industry in said city, must provide a number of services requiring additional cost to the city for fire and police protection, street construction and maintenance, water, sewer and related projects to protect public peace, health and safety, and that the immediate passage of this Act is necessary to enable said cities to obtain the benefits of the provisions of additional tax revenues, upon approval of the electors of said city, as authorized by Act 990 of 1975, as amended, and that the immediate passage of this Act is necessary to enable said cities to obtain the benefits of the provisions of this Act prior to the commencement of the 1981 tourist season. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 861, § 3: Mar. 28, 1981. Emergency clause provided: “It is hereby found and declared by the General Assembly that there is a great need for immediate improvement of municipal services and a stable source of revenue to finance such vital local government services. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the protection of the public peace, health and safety shall take effect and be in full force immediately on its passage and approval.”

Acts 1981 (1st Ex. Sess.), No. 25, § 14: Dec. 1, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that cities of the class described herein are faced with financial crises with reference to having sufficient tax resources to provide municipal services to their inhabitants, that such cities in many instances compete with municipalities of other states which permit municipalities of such states to levy local sales and use taxes, that such cities are of sufficient size to have expertise in management of such tax revenues, and that such financial crises constitute such an emergency that the immediate passage of this Act is necessary in order to provide financial relief to such cities. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1981 (1st Ex. Sess.), No. 26, § 20: Dec. 1, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the counties are faced with financial crises with reference to having sufficient tax resources to provide county services to their inhabitants. That such financial crises constitute such an emergency that the immediate passage of this Act is necessary in order to provide financial relief to such counties. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1983, No. 513, § 2: Mar. 24, 1983. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that interest income from city and county sales and use tax funds held by the State is an urgent need of cities and counties. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect immediately upon its passage and approval.”

Acts 1983, No. 722, § 11: Mar. 23, 1983. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that certain cities within the State are in dire need of additional capital funds to provide essential services and facilities of such cities; that the most appropriate way for such cities to provide such funds is by the levying of a sales and use tax on the gross receipts derived from certain business within the city and the issuance of bonds payable from such tax revenues as herein authorized; that this Act is needed and should be given effect at the earliest possible date. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 1028, § 3: Apr. 17, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that unless this Act is given effect immediately, the taxpayers of the State of Arkansas will be severely burdened in a manner not intended by this General Assembly. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 765, § 22: Mar. 26, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that cities and counties are faced with financial crises with reference to having sufficient tax resources to fund capital improvements of a public nature and to provide services to their inhabitants; that under current law the counties are restricted to a one percent (1%) levy and the cities are restricted to a one-half of one percent (0.5%) or one percent (1%) levy; that the ability to levy a sales and use tax computed on one-fourth of one percent, one-half of one percent, three-fourths of one percent, or one percent (1%) would be a feasible alternative for some cities and counties in financial crisis; and that such financial crises constitute such an emergency that the immediate passage of this act is necessary in order to provide financial relief to the cities and counties. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1995, No. 565, § 25: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that there are in excess of 300 different local sales and use taxes in effect; that many of these taxes are for specified duration; that notification of affected taxpayers of the beginning and ending of these taxes is time consuming and costly; that requiring local sales and use taxes to begin and end on a calendar quarter basis will ease the administrative burden of taxpayers and the cost to the State of Arkansas; and that an effective date of July 1, 1995 is necessary to achieve the purpose of this legislation. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect on and after July 1, 1995.”

Acts 1997, No. 1176, § 20: Jan. 1, 1998.

Acts 2001, No. 1561, § 8: Apr. 12, 2001. Emergency clause provided: “It is found and determined by the General Assembly that legislation is needed for the collection and enforcement of certain municipal sales and use taxes and that the immediate passage of this act is necessary for the Department of Finance and Administration to fulfill its duties with respect to such taxes. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003, No. 1273, § 88, as amended by Acts 2005, No. 2008, § 1, and Acts 2007, No. 180, § 1: Jan. 1, 2008. Effective date clause provided: “Effective date. It is found and determined by the Eighty-fourth General Assembly that the Streamlined Sales and Use Tax Agreement is necessary in order to stop the loss of sales tax revenue due to the rapid growth of internet sales, to level the playing field between local businesses and out-of-state businesses, and to negate the undue burden on interstate commerce; and that this act is necessary in order for Arkansas to be in compliance with the Streamlined Sales and Use Tax Agreement. Under the Streamlined Sales and Use Tax Agreement, when at least ten (10) states comprising at least twenty percent (20%) of the total population, as determined by the 2000 Federal census, of all states imposing a state sales tax have petitioned for membership and have been found to be in compliance with the requirements of the agreement, the agreement will become effective unless a specific effective date is otherwise given. These contingencies were met and the Streamlined Sales and Use Tax Agreement went into effect on October 1, 2005. Pursuant to the Streamlined Sales and Use Tax Agreement, a state may apply to become a party to the Streamlined Sales and Use Tax Agreement by submitting a petition for membership and certificate of compliance to the governing board. The governing board shall then determine if the petitioning state is in compliance with the Streamlined Sales and Use Tax Agreement. A state is in compliance with the Streamlined Sales and Use Tax Agreement if the effect of the state's laws, rules, regulations, and policies is substantially in compliance with the requirements in the Streamlined Sales and Use Tax Agreement. The petitioning state's proposed date of entry to the Streamlined Sales and Use Tax Agreement shall be on the first day of a calendar quarter. It is anticipated that Arkansas will become a full member of the Streamlined Sales and Use Tax Governing Board on January 1, 2008. In order to allow the Department of Finance and Administration and local businesses additional time to prepare for the changes necessary as the result of this act, all of the sections in this act will become effective on January 1, 2008. Thus, any section of this act with a specific effective date shall have an effective date of January 1, 2008, and not the specific effective date provided in the introductory language to the section, and when no effective date was listed in the section, then the effective date will also be January 1, 2008.”

Acts 2005, No. 1269, § 3: Mar. 29, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that municipal sales and use taxes are levied by the voters for specific uses; that if the tax revenue is no longer needed for that specific use, the revenues cannot be used for other purposes; that this act will allow the voters of the municipality the opportunity to change the use of the tax revenues; and that this act is immediately necessary because it provides that the voters may choose to change the use of the tax revenues. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2005, No. 1270, § 3: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that municipal sales and use taxes are levied by the voters for specific uses; that if the tax revenue is no longer needed for that specific use, the revenues cannot be used for other purposes; that this act will allow the voters of the municipality the opportunity to change the use of the tax revenues; and that this act is immediately necessary because it provides that the voters may choose to change the use of the tax revenues. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2007, No. 116, § 10: Feb. 16, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the citizens of municipalities do not have the authority under current law to petition for the election on the question of the levying of a local sales and use tax; that the levying of a city sales and use tax must be in accordance with state enabling legislation; that there is an immediate need for municipalities to obtain additional revenues to operate; and that city services are suffering due to a lack of revenues. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2007, No. 1045, § 8: Apr. 4, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the development of products and services derived from research activities involving Arkansas institutions of higher education and businesses and entrepreneurs involved in these research activities form the basis for much needed economic development that capitalizes on knowledge acquired through research; that the resulting intellectual property that is the foundation for business development presents opportunities for the State of Arkansas to compete effectively in the changing global economy; that the opportunities available for the growth of knowledge-based businesses are dependent upon the State of Arkansas creating an environment that allows these new businesses to grow and succeed in Arkansas; and that this act is immediately necessary to develop and retain these knowledge-based businesses in the State of Arkansas. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019.”