Justices back court's denial of tax election

Ruling agrees levy to build courthouse is illegal exaction

The state Supreme Court on Thursday upheld a Mississippi County Circuit Court's injunction of a March 14 sales-tax election to raise funds to build a new county courthouse, saying the proposed tax was an "illegal exaction."

County officials called for a half-percent countywide sales tax to build a 55,000-square-foot courthouse to replace deteriorating courthouses in Blytheville and Osceola. Mississippi County is one of 10 Arkansas counties that have two county seats.

Plans called for building the courthouse near Interstate 55 and U.S. 61 in south Blytheville. It would cost about $22.5 million.

Thursday's ruling ends a court battle that began last summer.

It's the second time a special tax election for the courthouse has been stopped. A circuit judge granted a similar injunction in July to halt an Aug. 9 election.

Randy Carney, county judge for Mississippi County, said he was disappointed by the court's decision Thursday. He said it will cost at least $60,000 to repair the heating system at the Osceola courthouse and more than $300,000 to replace a leaky roof at Blytheville's courthouse.

"People were saying I was so in favor of a new courthouse in Blytheville," he said. "All I wanted was to give our citizens the opportunity to vote on it.

"I don't know how the vote would have turned out."

Osceola residents requested the injunction, saying passage of the sales tax would cause "irreparable harm" because they would be paying for a courthouse they had not authorized by election. The lawsuit also contended that the tax would be unconstitutional because taxpayers in Osceola would pay for a courthouse that isn't in their district.

In his ruling opinion, Justice Robin Wynne cited Act 81 of 1901, which established the boundaries of the Chickasawba District and the Osceola District in Mississippi County. The act, Wynne noted, provided the two districts operate separately "as if they were circuit and chancery courts of different counties."

Other counties in the state with two seats are Arkansas, Carroll, Clay, Craighead, Franklin, Logan, Prairie, Sebastian and Yell.

In her dissenting opinion, Justice Josephine Hart cited a 1964 circuit court case in Clay County in which a judge ruled that a tax levied to build a courthouse in a county with two judicial districts was considered a county expense.

"[A]s a taxing entity, Mississippi County can levy a tax for the building of a courthouse in either judicial district because it is a county purpose," Hart wrote in her opinion. "This case serves as a blow to the Mississippi County Quorum Court and to the residents of that county in their efforts to govern themselves."

Wynne said Section 20 of the act required revenue accrued "shall be used for the exclusive benefit of the district in which such revenue shall arise."

The tax would have "authorized the use of tax revenue from the Osceola District for the exclusive benefit of the Chickasawba District in violation of Act 81," Wynne wrote. "This would constitute an illegal exaction."

Bart Calhoun, a Little Rock attorney who represents the Osceola residents, said he was pleased with the Supreme Court's ruling.

"The city of Osceola is very happy," he said. "We saw what the county was doing. They were going to tax the entire county and pay for something only one judicial district could use."

Carney said the county will continue looking for ways to build a courthouse.

"To keep these two courthouses going, we're throwing money down a black hole," he said. "We need to do something. I am sure those in Blytheville and Osceola who want a new courthouse will find a way."

State Desk on 03/03/2017

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