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HomeMy WebLinkAbout20-76 RESOLUTIONr r RESOLUTION NO. AO- % A RESOLUTION REFERRING PROPOSED ORDINANCES IMPOSING A LOCAL OCCUPATION TAX AND INCREASING LOCAL UTILITY FRANCHISE TAXES TO A VOTE OF THE PEOPLE. WHEREAS, the general rund revenues of the City of Fayette- ville are insufficient to meet the annually increasing general fund expenses of the city, including the cost of providing essential services such as fire and police protection to the inhabitants of the city; and WHEREAS, a local occupation tax and an increase in local franchise taxes would provide a supplement to existing general fund revenues on an interim basis until such time as statewide local enabling legislation or constitutional amendments are adopted to increase the ability of municipalities to support themselves; and WHEREAS, the Board of Directors has determined that the question of imposing a local occupation tax and increasing local utility franchise taxes should be referred to a vote of the people NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That a special election be, and the same is hereby, called to be held in the city on the 25th day of May, 1976, at which election there will be submitted to the electors of the city the question of imposing a local occupation tax and increasing local utility franchise taxes. Section 2. That the question shall be placed on the ballot for the election in substantially the following form. FOR adoption of ordinances imposing a local occupation tax and increasing local utility franchise taxes Q AGAINST adoption of ordinances imposing a local occupation tax and increasing local utility franchise taxes Q It is proposed that the Board of Directors adopt an• ordinance whereby an occupation tax is imposed upon all persons doing business within the city according to the following schedule: (a) Each professional shall pay an occupation license tax in the amount of $50.00; (b) Each non-professional employer shall pay an occupation license tax in the amount of $15.00, plus $6.00 per employee; each professional employer shall pay an occupation tax of $6.00 per employee, provided, the maximum tax per employer shall not be in excess of $500.00; and (c) Every other person except employees and except persons working less than 30 hours per week shall pay an occupation license tax in the amount of $15.00. The tax would be payable annually. It is further proposed that the annual utility franchise taxes presently levied against Southwestern Electric Power Company, Arkansas Western Gas Company and Ozarks Electric Cooperative Corporation be increased from 3% to 4% of gross revenues from residential (domestic) and commercial consumers, that a 1% utility franchise tax be imposed on industrial consumers and that the franchise tax levied against Southwestern Bell Telephone Company be increased from $37,500.00 to $75,000.00 for the year 1976, and to a minimum of $100,000.00 per annum thereafter. These additional franchise taxes would be passed on by utility companies to their consumers. • -2- Section 3. That the election shall be held and conducted and the vote cast and the results declared under the law and in the manner provided for municipal elections so far as the same may be applicable. Only qualified electors of the city shall have the right to vote at the election. Section 4. That a copy of this resolution shall be furnished to the Washington County Board of Election Commissioners so that the necessary election officials and supplies may be provided. PASSED AND APPROVED THIS ,f0tADAY OF ATTEST: CITY CLERK APPROVED: '"fr -I-"' , 1976.