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Ordinance 1996-06

LEVYING TAX AND DEFINING SINGLE TRANSACTION
AN ORDINANCE PROVIDING FOR THE LEVY OF A ONE PERCENT SALES
AND USE TAX WITHIN THE CITY OF JOHNSON, ARKANSAS: AND
PRESCRIBING OTHER MATTERS PERTAINING THERETO.
WHEREAS, the City Council of the City of Johnson, Arkansas (the City) has
determined thai there is a great need for immediate improvement of municipal services and for a source of revenue to finance such services: and
WHEREAS, Title 26 Chapter 75, Subchapter2 of the Arkansas Code of 1987
Annotated (the "Authorizing Legislation") provides for the lev)' of a one percent (1%) city wide sales and use tax;
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of
Johnson, Arkansas:
Section 1. Under the authority of the Authorizing Legislation, there is hereby
levied a one percent (1 %) tax on the gross receipts from the sale at retail within the City of all items which are subject to the Arkansas Gross Receipts Tax Act of 1941. as amended (A.C.A. 26-52-101, et seq.) and the imposition of an excise (or use) tax on the storage, use or other consumption within the City of tangible personable property subject to the
Arkansas Compensating Tax Act of 1949, as amended (A.C.A 26-53-101, et scq.), at a
rale of one percent (1%) of the sale price of the properly or, in Ihc case of leases or rentals,
of the lease or rental price (collectively, the "Sales and Use Tax"). The Sales and Use Tax
shall be levied and collected only on the first $2,500 for each single transaction.
Section 2. "Single transaction" is defined according to the nature of the goods
purchased as follows:
A. When two or more devices in which, upon which or by which any person or
property is, or may be, transported or drawn, including but not limited to, on-roacl vehicles, whether required to be licensed or not, off-road velucles, farm vehicles, motor vehicles or non-motorized vehicles and mobile homes, are sold to a person by a seller, each individual
unit, whether pail of a "fleet" sale or not, shall be treated as a single transaction for the
purpose of the Sales and Use Tax.
B. The charges for utility services, which are subjects to the Sales and Use Tax,
and which are furnished on a continuous service basis, whether such services are paid
daily, weekly, monthly or annually, for the puiposes of the Sales and Use Tax, .shall be
computed daily increments, and each such daily charge increment shall be considered to be
a single transaction for the purposes of the Sales and Use Tax.
C. For sales of building materials and supplies to contractors, builders or other
persons, a single transaction, for the puiposes of the Snles and Use Tax, shall he deemed lo
he any single sale which is reJtccled on a single invoice, receipt or statement, on which an
aggregate sales (or use) tax figure has been reported and remitted lo the State of Arkansas.

D. When two or more items of major household appliances, commercial
appliances, major equipment and-maehinery are sold, each individual unit shall be treated
as a single transaction for the purpose of the Safes and Use Tax.
E. For groceries, drug items, diy goods and other tangible personal property and/or
services not otherwise expressly covered in this Section, a single transaction shall be
deemed to be any single sale wluch is rellecled on a aggregate sales (ax figure has been
reported and remitted to the Stale of Arkansas.
Section 3. That all ordinances and parts thereof in conflict herewith ar-e- hereby
repealed to the extent of such conilicl
Section 4. That this Ordinance shall not. take effect until an election is held on the
question of levying the Sales and Use Tax al which a majority of the electors voling on the
questions shall have approved the lev)' of the Sales and Use Tax.