Greenwood policymakers on June 1st tabled the final reading of an ordinance calling a special election in November for renewal of the city’s 0.75 percent sales and use tax, which sunsets in 2016.
The 10-year sales and use tax was first approved in August 2006, according to city officials. If renewed by voters during a proposed special election Nov. 10, the tax would last at least another decade. Revenues from the tax are split equally among firefighting, parks and streets.
The City Council tabled the measure’s third reading until July on the advice of City Attorney Mike Hamby, who has been working with bond counsel on the tax issue.
"He has indicated we can bond it," Hamby said. "We’ll have two ballot issues. One will be for extension of the tax. The other will be for the bond. But he’ll be here next month to explain it in more detail."
The city’s total tax rate is 9.75 percent, the same as neighboring Fort Smith and Barling. City-specific taxes of 2 percent include the 0.75 percent sales and use tax, a 1 percent tax on water/sewer and a 0.25 percent police station tax approved by voters in 2013.
The 0.75 percent tax brings in about $800,000 annually, according to City Clerk Sharla Derry.
The special election is expected to cost around $6,500, which would be split among the city’s 10 departments.