As a reminder, beginning Sunday through September 30th, a 1 percent sales tax increase will kick in for Baxter county. The state will remain at 6.5 percent, the city of Mountain Home will remain at 1.375 percent and the county’s will be 2 percent. The total rate for this time period will be 9.875 percent. In October of 2018 the tax will drop back to the January rate of 8.875 percent.
In 2019 the rate will change again. The state rate will remain at 6.5 percent and Mountain Home will remain at 3.375 percent. Baxter county will decrease to 1.25 percent, bringing the total to 9.125 percent.
The fluctuation in rates came about after voters in Mountain Home passed a 3/8 percent sales and use tax to benefit the city’s fire and police departments. In addition, voters countywide approved levying a one cent sales and use tax for eight months to expand the Baxter County Detention Center, as well as furnish and equip the new portion, and provide for the operation and maintenance of the jail.
When a county or city decides to have a special election to increase the sales tax at the city or county level officials provide the results of the election, with all the documentation required under Arkansas law, to the Department of Finance and Administration (DFNA).
Paul Gehring, with the Office of Revenue Legal Counsel for the DFNA, has more on the process.
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A countywide one-quarter cent sales tax was also approved following the expiration of the one cent sales and use tax. The one-quarter cent tax will be ongoing.
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