(A) (1) Under the authority of the authorizing legislation, there is hereby levied a new 1.25% tax on the gross receipts from the sale at retail within the city of all items which are subject to the State Gross Receipts Act of 1941, as amended (A.C. §§ 26-52-101 et seq.), and the imposition of a new excise (or use) tax on the storage, use, distribution, or other consumption within the city of tangible personal property subject to the State Compensating Tax Act of 1949, as amended (A.C. §§ 26-53-101 et seq.), at a rate of 1.25% of the sale price of the property or, in the case of leases or rentals, of the lease or rental price (collectively, the “sales and use tax”).
(2) The sales and use tax shall be levied, and collected, on the gross receipts, gross proceeds, or sales price in the maximum amount allowed, from time to time, under state law, subject to rebates and limitations as required for certain single transactions, as from time to time required by state statutes.
(B) The sales and use tax shall be levied, and the net collections received after deduction of the administrative charges of the state, and required rebates shall be used by the city to pay, and secure, the repayment of bonds approved by the voters, and issued by the city to finance capital improvements; provided, however, that any amounts not necessary to fully retire any bonds may be used for any lawful municipal purpose.
(C) The sales and use tax shall expire on the first date on which the sales and use tax can be administratively removed when:
(1) There are sufficient funds to pay, in full, any outstanding bonds secured by a pledge of collections of the sales and use tax; and
(2) The City Council determines that the purposes of the sales and use tax cannot be, or cannot continue to be, fulfilled because no additional bonds secured by a pledge of collections of the sales and use tax will be issued in the future.
(Ord. 2019-18, passed 9-9-2019)