(A) Under the authority of the Constitution and laws of the State of Arkansas including the tax legislation there is hereby levied for the purpose of operating and maintaining or making capital improvements to a two-year college in the county, currently A.S.U.- Newport campus (the "college") of Arkansas State University, a new .5% tax on the gross receipts from the sale at retail within the county of all items which are subject to the Arkansas 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 county of tangible personal property subject to the Arkansas Compensating Tax Act of 1949, as amended (A.C. §§ 26-53-101 et seq.) at a rate of .5% 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").
(B) The Sales and Use Tax shall be levied and collected only on the first $2,500 of gross receipts, gross proceeds or sales price from each single transaction. After the charge (currently 3%) is deducted by the State Treasurer for the services of the State of Arkansas in collecting and distributing the collections of the Sales and Use Tax, the collections of the Sales and Use Tax shall be distributed to the county and shall be used to provide a portion of the funds to operate and maintain or to make capital improvements to the college. The county shall either make the expenditures directly or contract with the college for the same.
(C) Currently, the college is a two-year college located in the county and is owned and operated by Arkansas State University. However, the term "college" as used herein shall mean a two-year college in the county, whether or not owned and operated by Arkansas State University or another institution of higher education.
(Ord. 2002-1, passed 6-10-02)