Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: S3/13/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 SENATE BILL 394
4
5 By: Senators J. Bryant, Hester, Dees
6 By: Representatives McAlindon, B. McKenzie, R. Burkes, Underwood, R. Scott Richardson, McCollum,
7 John Carr, Duke, Torres
8
9 For An Act To Be Entitled
10 AN ACT TO AMEND THE LAW CONCERNING COUNTY SALES AND
11 USE TAXES FOR CAPITAL IMPROVEMENTS; TO ALLOW A COUNTY
12 TO REFER TO THE VOTERS A CHANGE IN THE ALLOCATION OR
13 DISTRIBUTION OF REVENUES FROM A COUNTY SALES AND USE
14 TAX FOR CAPITAL IMPROVEMENTS; TO PROHIBIT A
15 MUNICIPALITY FROM PLEDGING REVENUES FROM A COUNTY
16 SALES AND USE TAX FOR CAPITAL IMPROVEMENTS TO REPAY
17 BONDS; AND FOR OTHER PURPOSES.
18
19
20 Subtitle
21 TO AMEND THE LAW CONCERNING THE
22 ALLOCATION, DISTRIBUTION, AND USE OF
23 REVENUES DERIVED FROM A COUNTY SALES AND
24 USE TAXES FOR CAPITAL IMPROVEMENTS.
25
26 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
27
28 SECTION 1. Arkansas Code � 14-164-337(a), concerning the pledge of
29 preexisting sales and use tax under the Local Government Bond Act of 1985, is
30 amended to read as follows:
31 (a) In Except as provided in � 26-74-214(c)(1)(B), in any municipality
32 or county which has in effect the levy of a local sales and use tax, the
33 legislative body may, by ordinance, pledge all or a specified portion of the
34 existing tax to retire its bonds as provided in this subchapter.
35
36 SECTION 2. Arkansas Code � 26-74-208(c), concerning the form of the
*JLL049* 03-13-2025 14:33:35 JLL049
As Engrossed: S3/13/25 SB394
1 ballot for a county sales and use tax for capital improvements, is amended to
2 read as follows:
3 (c)(1)(A) The ballot may also indicate designated uses of the revenues
4 derived from the sales and use tax or the allocation or distribution of
5 revenues, or both, and if the tax is approved, the proceeds shall only be
6 used for the designated purposes and distributed in the manner set forth in
7 the ballot.
8 (B) The county's share of the proceeds may be used for
9 other designated purposes if the electors approve a change in the designated
10 use of the revenues by vote under this subsection.
11 (2)(A)(i) The quorum court of a county may refer to the vote of
12 the people a change in the indicated use of revenues derived from a sales and
13 use tax levied by the county that was approved by the voters, but a change
14 shall not alter the allocation of tax collections among the county and
15 municipalities within the county or, if the requirement of subdivision
16 (c)(2)(A)(ii) of this section is met, a change in the allocation or
17 distribution of revenues among the county and the municipalities within the
18 county.
19 (ii) The quorum court of a county may refer to the
20 vote of the people a change in the allocation or distribution of revenues
21 among the county and the municipalities within the county only if the
22 population of the largest municipality in the county exceeds the population
23 of the unincorporated areas of the county, according to the most recent
24 federal decennial census.
25 (B) If the quorum court of a county refers to the vote of
26 the people a change in the indicated use of revenues derived from a sales and
27 use tax or a change in the allocation of tax collections among the county and
28 the municipalities within the county, or both, the quorum court shall:
29 (i) Notify the county board of election
30 commissioners that the measure has been referred to the vote of the people;
31 and
32 (ii) Submit a copy of the ballot title to the county
33 board of election commissioners.
34 (C)(i) An election to change the indicated use of revenues
35 derived from a sales and use tax or to change the allocation or distribution
36 of revenues among the county and the municipalities within the county, or
2 03-13-2025 14:33:35 JLL049
As Engrossed: S3/13/25 SB394
1 both, shall be conducted in the manner provided by law for all other county
2 elections.
3 (ii) The results of an election under this
4 subsection shall be certified, proclaimed, and subject to challenge under the
5 procedures stated in � 26-74-209.
6 (3)(A) If the voters approve a change in the indicated use of
7 revenues derived from a sales and use tax, the change in the indicated use
8 shall apply to all revenues collected on the first day of the calendar month
9 following the expiration of the thirty-day challenge period under � 26-74-
10 209.
11 (B) If the voters approve a change in the allocation or
12 distribution of revenues among the county and the municipalities within the
13 county, the county shall notify the Treasurer of State of the new allocation
14 or distribution of revenues among the county and the municipalities within
15 the county that was approved by the voters after publication of the
16 proclamation has occurred and at least ninety (90) days before the new
17 allocation or distribution becomes effective.
18 (4)(A) If the voters do not approve a change in the indicated
19 use of revenues derived from a sales and use tax, the tax shall continue to
20 be collected and the revenues derived from the tax shall continue to be used
21 for the purposes indicated in the ballot for the tax.
22 (B) If the voters do not approve a change in the
23 allocation or distribution of revenues among the county and the
24 municipalities within the county:
25 (i) The tax shall continue to be collected; and
26 (ii) There shall be no change in the allocation or
27 distribution of the revenues derived from the tax.
28 (C) An election to change the indicated use of revenues
29 derived from a sales and use tax or to change the allocation or distribution
30 of revenues among the county and municipalities, or both, shall not
31 constitute an election on the levy of the tax.
32 (5) Notwithstanding anything in this subchapter to the contrary,
33 in any county that a local sales and use tax has been adopted in the manner
34 provided for in this subchapter and a portion of the revenues derived from
35 the tax has been pledged to secure lease rentals or bonds, the purpose for
36 the tax may not be changed to reduce the pledge in favor of the lease or
3 03-13-2025 14:33:35 JLL049
As Engrossed: S3/13/25 SB394
1 bonds.
2
3 SECTION 3. Arkansas Code � 26-74-214(c)(1), concerning the disposition
4 of funds received from a county sales and use tax for capital improvements,
5 is amended to read as follows:
6 (c)(1)(A) Funds Except as provided in subdivision (c)(1)(B) of this
7 section, funds received by the counties and municipalities pursuant to the
8 provisions of this subchapter may be used by the counties and municipalities
9 for any purpose for which the county general funds or the city general funds
10 may be used, subject to designations set forth in the ballot, if any.
11 (B) A municipality shall not pledge revenues from a tax
12 levied under this subchapter for the repayment of bonds.
13
14 /s/J. Bryant
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
4 03-13-2025 14:33:35 JLL049Every fact on this page links to its source, starting with the official bill record.