After a six-month, 1 percent sales tax collection sunsetted on Sept. 30th, Baxter County’s sales tax rate is set to increase again Tuesday by one-quarter of a percent.
Both collections were approved by voters in a special election in September 2017. What began as a plan to collect a 1 percent sales tax for eight months with the proceeds to finance the expansion of the Baxter County Detention Center was shortened to six months.
During the six-month period running from April through September, the sales tax generated $3.57 million. The estimated cost of the jail expansion is $4.2 million.
County Treasurer Jenay Mize said earlier officials project it will take the first six months of the one-quarter cent tax collections to complete funding for the jail expansion price tag.
The voter-approved one-quarter cent sales and use tax to begin Tuesday is earmarked for continued jail operation expenses. The one-quarter cent tax will be ongoing.
With the increase, Mize says the new combined rate for Baxter County, Mountain Home and the state will be 9.125 percent.
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Mize says while she is happy to answer any questions she can, the best source of information regarding the collection of sales tax is the Arkansas Department of Finance and Administration’s Sales and Use Tax Division sales tax.
She says those charged with the collection of sales taxes should have already received information from DFA about the change.
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