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FAYETTEVILLE -- Goshen voters will decide May 22 whether to approve a one percent sales tax with proceeds going t meet the city's needs, officials said.

"It's a good thing for all the residents," said Dr. Brian Buell, a City Council member.

Goshen Sales Tax

The proposed, 1 percent sales and use tax for Goshen would be levied and collected on gross receipts, gross proceeds or sales price for each single transaction.

Source: Goshen Ordinance No. 147

The Goshen City Council unanimously approved Tuesday two ordinances to levy and call for a special election to be held with the primary and nonpartisan judicial elections May 22. The city does not have a sales tax, even though most cities have one, Mayor Max Poye said.

So far, no one has objected to the proposed special election, Buell said.

The Council held a special meeting to meet the deadline for putting the issue on the May 22 ballot. If approved, residents would pay a 1 percent sales tax that would go to needs in Goshen, officials said.

Residents sometimes have been paying Fayetteville or Springdale tax rates, Poye said, but that would end for some purchases if the proposed tax passes. Arkansas' taxes are based on where the buyer actually starts possessing the product, said Brian Sansoucie, a manager at the state Department of Finance and Administration.

For example, Poye said he recently bought an appliance in Fayetteville and paid a 2 percent sales tax for Fayetteville, even though his purchase was delivered to Goshen. The new tax will stop that, he said.

Arkansas changed to a "destination based" tax state in 2008. If the new tax passes, the state will collect the city's sales tax using geographical information and remit the money back to the city directly, said Don Zimmerman, executive director of the Arkansas Municipal League. Goshen residents would pay only their own sales tax rates, not that of other cities, he said.

Buell said there are no estimates for how much the 1 percent sales tax would raise for Goshen. The city doesn't have much retail, he said, but a Dollar General Store is being built and expected to open this year. That could boost the city's revenue with the one percent sales tax, Buell said.

Poye planned to sign the ordinance Wednesday, he said. Paperwork still must then be submitted to the County Clerk before the measure officially goes on the ballot, said Jennifer Price, executive director of the Election Commission.

The Commission expects a higher turnout during the primary election than in 2010, Price said. She said estimates about a 40 percent voter turnout overall. That includes Goshen, where 1,239 people are registered to vote.

NW News on 03/08/2018

Print Headline: Goshen to ask voters for 1 cent sales tax

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