HOT SPRINGS -- Garland County has threatened legal action against the city of Mountain Pine for its unpaid share of the 0.375 percent sales tax that supports the operation and maintenance of the Garland County jail, according to a letter The Sentinel-Record obtained through an Arkansas Freedom of Information Act request.
The letter dated April 10 to Mountain Pine Mayor Morgan Wiles and signed by County Judge Darryl Mahoney said Mountain Pine owed $13,900 in sales tax remittances it received from the state during the first quarter of the year. Wiles said the city has been keeping the money in a restricted fund since he took office in January.
The state tax code entitles the city to a population-based share of the countywide tax, but unlike the county's other incorporated areas, Mountain Pine has not agreed to remit its percentage. The City Council adopted a 2011 resolution announcing an intent to do so, but it has yet to ratify a detention services agreement with the county.
"Mountain Pine, along with all other municipalities within Garland County, has been regularly forwarding the sales and use tax collections to the county since 2014, so the sudden disruption is puzzling," the letter said. "Please consider this as demand for payment of the arrearage immediately and a request to maintain regular payments as proceeds are received from the state.
"Garland County will consider legal options if payment has not been received within 14 days from the date of this letter."
County officials said Mountain Pine is undermining the will of the electorate, which authorized the sales tax in an October 2011 special election. The ballot title that voters approved said cities with law enforcement personnel shall use their collections to operate and maintain jail facilities and pay the costs of housing prisoners.
"As you know, the voters of Garland County voted to assess this sales and use tax specifically for the maintenance and operation of the detention facility," the letter said. "It is the position and opinion of Garland County that these proceeds may only be used for that specific purpose. Mountain Pine has no authority to override wishes of the voters and retain the sales tax proceeds for its own purposes."
Wiles said he does not object to remitting the city's share, or even paying more to house the city's inmates, but he maintains that the city's cost share should be based on the number of its inmates in the jail and not the sales tax formula. He said it's a position supported by statute, which requires the county and city to negotiate a daily fee if they haven't agreed to another funding arrangement.
Wiles said the city also is not receiving a level of service equal to what it has remitted. He said he hasn't been able to schedule a meeting with county officials to discuss the issue or other interlocal areas of concern.
"Basically, all the way around it doesn't feel like the city of Mountain Pine has an open line of communication," he said. "The money is held in a [city] jail fund we can't do absolutely anything with. We just need some leadership to walk us through and explain to us what's going on."
Former County Judge Rick Davis told the City Council last year that he had allowed Mountain Pine to retain sales tax remittances it received for the first quarter of 2018, advising the council to direct the money to the reconstitution of the Police Department.
The city disbanded its one-man department in January 2017 and enlisted part-time marshals later that year. Last month the council voted to reinstate the department. The 2011 ballot language said cities without law enforcement personnel could put their share of the tax in the city general fund.
The countywide sales tax raises about $6.6 million a year for jail operations and maintenance. Mountain Pine's share is more than $50,000. Hot Springs' share is more than $2.8 million.
NW News on 04/18/2019