Tax collections on pace to meet cost of jail expansion

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Half way through the six-month period for collection of a county-wide one cent sales and use tax for the expansion of the Baxter County Detention Center, Treasurer Jenay Mize says the county is on pace to hit the revised $3.56 million target. The target was revised down from $4.2 million when the collection period was adjusted from eight to six months.

Mize says the August sales tax collections, reflecting dollars generated in June, show the one cent sales and use tax stood at $621,414, which is $13,500 above projections.

The combined collections for April and May, the first two months for the special tax, were $1,162,000.

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 beginning January 1st, 2019 for continued jail operation expenses. The one-quarter cent tax will be ongoing.

Overall, Mize says sales tax collections are up.


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The county sales tax is divided among the county and the eight municipalities. Mountain Home received $186,33, followed by Gassville with $31,105, Cotter with $14,520, Lakeview with $11,092, Norfork with $7,649, Salesville with $6,736, Briarcliff with $3,532 and Big Flat with $1,556.

Mountain Home Treasurer Rita Murray says the city sales taxes received from the county was up 2.22 percent from the prior year, with $186,335. The city sales tax receipts were $155,939, down 12.82 percent from the prior year.

Murray says this is the final month funds will be withheld from taxes distributed to the city, following an audit in 2017 revealing both the county and the city had been overpaid. The audit noted an undisclosed business inadvertently paid the wrong amount, something they should not have or paid the wrong entity. The City of Mountain Home opted to clear up its portion of the deficit over a 10-month period, while the county made a one-time payment.

Murray reports the city began receiving the funds for the .375 public safety tax in March and has received six months of collections to date for a total of $779,834.

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