The six-month window for the collection of a 1 percent special sales tax for the expansion of the Baxter County Detention Center closed in September reflecting good news in the November reporting period, according to Baxter County Treasurer Jenay Mize.
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The six-month collection of the county-wide one cent sales and use tax for the jail project began in April. The estimated cost of the jail expansion is $4.2 million.
The one cent sales and use tax was overwhelmingly approved by voters in September 2017. Voters also approved a county-wide one-quarter cent sales and use tax to begin Jan. 1st for continued jail operation expenses. The one-quarter cent tax will be ongoing.
Mize says county officials project it will take the first six months of one-quarter cent tax collections to complete funding for the jail expansion price tag. The goal for the collections during the final six months of 2019 is to secure sufficient funding for the maintenance and operation of the facility.
The positive news for the collection of the special jail sales tax also brings good news overall for the county and its eight municipalities, following a year when all were sent scrambling after an unexpected call from Little Rock.
Mize says all have weathered the storm that began in late November 2017 with the Arkansas Department of Finance and Administration advising the outcome of an audit. County officials learned an overpayment of $539,000 had been made to an undisclosed business inadvertently making duplicate sales tax payments for 36 months. While the county made a one-time payment to DFA, the City of Mountain Home opted to spread its payments over a 10-month period. Mize says the development also meant less monies for the other seven cities in the county.
When taking this development into account, Mize says it is challenging comparing year-to-year or month-to-month collection reports. Looking back at the financial nightmare, Mize says the county has weathered the storm, and she is projecting a strong finish to 2018.
She projects the county will collect about $6.8 million in sales tax for 2018. After disbursements to the eight municipalities, it is from an anticipated net of $3.9 million the quorum court can appropriate up to 90 percent, along with funding from other revenue sources.
Over at Mountain Home City Hall, Treasurer Rita Murray reports the city’s sales tax collection for September was $166,765, a 28.78 percent increase from the prior year. Murray also noted November 2017 was the first month the city received a deduction from DFA for the tax overpayment.
Collections for the public safety tax for the month were $146,949, down from $155,000 received for the month of August.
Once the county sales tax was allocated to the eight cities, Mountain Home received $168,051, Gassville took in $28,053, Cotter had $13,095, Lakeview took in $10,003, Norfork received $6,898, Salesville had $6,075, Briarcliff took in $3,186 and Big Flat had $1,404.
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