AR HB1308

Municipalities and counties may pledge revenues from the one-half percent (½%) sales and use tax levied under Arkansas Constitution, Amendment 101 to retire bonds for surface transportation projects, with voter approval required.

The Treasurer of State must separately identify and track distributions of Amendment 91 and Amendment 101 tax revenues to municipalities and counties that have filed bond ordinances.

Municipalities and counties may elect to have identified tax revenues distributed directly to a designated bank or depository rather than to the municipality or county itself, with distributions continuing until bonds are fully paid.

Sales and use taxes levied under Amendment 91 and Amendment 101 are exempted from deduction, transfer, or distribution to the Constitutional Officers Fund or State Central Services Fund.

The excise tax under Amendment 101 is excluded from refunds available for partial replacement and repair of certain machinery and equipment, consistent with Amendment 91 treatment.