Half-cent sales tax up for vote in November
During the Sept. 15 city board meeting, City Administrator Phillip Patterson reminded voters during his report that the upcoming Transportation Sales Tax Continuation initiative will be on the ballot for the Nov. 3 election.
The Sales Tax Continuation initiative, also known as Arkansas House Joint Resolution (HJR) 1018 and Issue 1 on the November ballot, would be a continuation of a one-half percent sales tax which took effect in 2013 and is scheduled to sunset in 2023. By approving Issue 1, voters would make the tax permanent.
During the city board meeting on March 3, the board approved Resolution 13-20 supporting HJR 1018, according to the minutes from that meeting.
On Tuesday, Patterson did not tell voters to vote for the tax, but instead reminded the board and citizens of the benefit of continuing the sales tax.
“Based on the information that we received from the Arkansas Department of Transportation and the Arkansas Municipal
League, the amount of money coming to the city from that tax has been approximately $350,000 a year,” Patterson said. “That’s a big chunk of change for us and our street improvement program.”
The money from the sales tax is split 70/30, with 70 percent going to the state, Patterson said. He also said the remaining 30 percent is divided in a 15/15 split between cities and the county. The 15 percent given out to cities is based on the population of
each municipality, Patterson said.
Benton County received approximately $1.8 million from the sales tax in 2019 and approximately $1.9 million in 2020, according to Communications Director Channing Barker.
“Without that half-cent tax, I believe and I think the board did too with the passage of Resolution 13-20, that without the continuation, the state and our counties and cities are going to have a more difficult time meeting the demands of rebuilding and maintaining our transportation infrastructure,” Patterson said.
Patterson also said he received a letter from the Arkansas State Highway Commission stating if Issue 1 passes the highway commission plans to commit $100 million to the Highway 412 corridor, specifically between the city of Huntsville and the town of Black Rock.
Patterson said the highway turns into a two-lane road after leaving Huntsville and is a two-lane highway all the way to Black Rock. He did not say if any work will be done on Highway 412 in or around Siloam Springs.
Other business discussed and voted on during the city board meeting included:
Consent agenda items
• Approving meeting minutes from the Sept. 1 workshop.
• Approving the regular meeting minutes for the Sept. 1 city board meeting.
• Dedication of utility easements at 812 W. Elgin St.
• Approving a purchase contract for an excavator from Scott Equipment Company for $100,979.
Regularly scheduled items
• Placing Ordinance 2020 regarding the annexation of Enclave “A”/West Villa View Drive and State Highway 43 on its third reading and taking a separate vote to adopt the ordinance.
• Placing Ordinance 2021 concerning the annexation of Enclave “B”/15589 Stephens Road on its third reading then taking a separate vote to adopt the ordinance.
• Placing Ordinance 2022 regarding the annexation of Enclave “C”/ South Highway 16 and 3402 Hwy. 412 E. on its third reading and taking a separate vote to approve the ordinance.
• Placing Ordinance 2023 concerning the annexation of Enclave “D”/3000 block of Highway 412 East on its third reading then taking a separate vote to approve the ordinance.
• Placing Ordinance 2024 regarding the annexation of Enclave “E”/3870 Hwy. 412 E. on its third reading and taking a separate vote to approve the ordinance.
• Approving Resolution 43-20 concerning amendments to the city’s employee handbook.