Correction: Tax can be levied for “any purpose” for General Fund
Chapter 76 of the state statutes begins by authorizing “capital improvements of a public nature, and the issuance of bonds for the financing of capital improvements of a public nature,” AC 26-75-201(a).
A subsection later, we read that taxes levied under Chapter 76 “may be used… for any purpose for which the municipality’s general fund may be used,” AC 26-75-201(c)(2)
So much for consistency. If subsection (2) says what it seems to, the City has special tax levies for general operating costs, including payroll.
We regret our initial failure to catch the happy contradiction. We also note that 26-75-502 is more direct in allowing levies for general operating costs. Assuming one or more ordinances have been passed under this section, we are doing fine.
That’s a good thing but no reason not to ask for an AG opinion on where we are, and where we can go.
We need an audit as well, to let us know exactly which levy under what ordinances and referenda we are currently levying a tax.
Filed under: Commentary, Council, Eureka Springs, Mayor, Politics | Tagged: Attorney General Opinion, General Fund, Sales and Use Tax
[...] Exaction? AG Opinion and Audit Called for Posted on May 11, 2008 by Watchdog Please see our correction. In a happy contradiction, the state has said these tax levies both are, and are not, for capital [...]
The line indicating that the tax can be used for any general fund purpose is STILL organized under Chapter 26, CAPITAL IMPROVEMENTS.
So, since capital fund is a general fund category, are they still meaning capital general?
No where can I or anyone I’ve spoken with find a place that allows payroll or operating from the Sales and Use Taxes.
It’s just clear as mud to me.
Lynn