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® Building Permits. The following sets forth the valuation of all building permits issued by the
<br /> City during each of the last five(5) years:
<br /> Year Valuation
<br /> 2007 $ 9,601,537
<br /> 2008 9,459,935
<br /> 2009 10,225,665
<br /> 2010 14,099,086
<br /> 2011 114,415,435*
<br /> *Increase due to a number of large projects in the City, including miprovements for White River
<br /> Medical Center, Batesville School District, Lyon College, Batesville Housing Authority and
<br /> Batesville Sewer Department.
<br /> THE TAXES
<br /> Generally. The Taxes are levied as follows: the Permanent Tax under Ordinance No. 2011-
<br /> 12-03, adopted December 27, 2011, under the authority of Title 26, Chapter 75, Subchapter 2 of
<br /> the Arkansas Code of 1987 Annotated; and the Bond Tax under Ordinance No. 2011-12-05,
<br /> adopted December 27, 2011, under the authority of Title 26, Chapter 75, Subchapter 2 of the
<br /> Arkansas Code of 1987 Annotated. The Taxes are taxes within the City on all items which are
<br /> subject to taxation under The Arkansas Gross Receipts Act of 1941 and a tax on the receipts
<br /> from storing, using or consuming tangible personal property under The Arkansas Compensating
<br /> (Use) Tax Act of 1949. Pursuant to the Authorizing Ordinance, the City has pledged the Tax
<br /> receipts to the payment of the Bonds. The Taxes will become effective on July 1, 2012.
<br /> The Streamline Sales and Use Tax Agreement ("Streamline") has been adopted by Arkansas and
<br /> • became effective on January 1, 2008. Streamline amended Arkansas sales and use tax law to
<br /> allow the State to collect sales and use taxes from internet sales from vendors outside the State.
<br /> Streamline limits the collection of the local sales and use tax on the first $2,500 of sales proceeds
<br /> only on the following sales: motor vehicles, aircraft, watercraft, modular homes, manufactured
<br /> homes or mobile homes. There is no limit of the amount of local sales and use tax to be paid on
<br /> all other items. The State allows businesses, nonprofits and governmental entities to file for a
<br /> credit or rebate on a local sales and use tax if the amount on an invoice totals more than $2,500
<br /> on certain qualified purchases. Claims for credit or rebates must be filed with the Arkansas
<br /> Department of Finance and Administration ("DF&A") within six (6) months from the date of
<br /> purchase or six (6) months from the date of payment, if later. DF&A will then cause the State
<br /> Treasurer to withhold the amount of the refund from future disbursements to the local
<br /> government levying the sales and use tax. Prior to January 1, 2008, sales and use taxes were
<br /> collected on the first $2,500 of sales proceeds for each single transaction, as defined by the City.
<br /> Pursuant to Act 757 of 2011 (the "Sales Tax Holiday Act"), the State has created an annual sales
<br /> tax holiday in which clothing (which are less than $100 per item), clothing accessories or
<br /> equipment (which are less than $50 per item), school art supplies, school instructional materials
<br /> and school supplies are exempt from taxation under The Arkansas Gross Receipts Tax Act of
<br /> 1941. The annual sales tax holiday is from 12:01 a.m. on the first Saturday in August until 11:59
<br /> p.m. the following Sunday.
<br /> Set forth in Exhibit A attached hereto is a summary of certain provisions of the statutes
<br /> authorizing the Tax. The summary does not purport to be complete statements of the laws.
<br /> Reference is made to the Arkansas Code Annotated §§26-52-101 et seq. and 26-53-101 et seq.
<br /> for the full text and complete descriptions of such provisions.
<br /> Administration. The Commissioner of Revenues of the State (the "Commissioner")performs all
<br /> functions incidental to the administration, collection, enforcement and operation of the Taxes.
<br /> • All Tax receipts collected, less certain charges payable and retainage due the Commissioner for
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