Collection of Crittenden County sales tax to fund now-bankrupt hospital enjoined | Arkansas Blog

Wednesday, October 1, 2014

Collection of Crittenden County sales tax to fund now-bankrupt hospital enjoined

Posted By on Wed, Oct 1, 2014 at 5:12 AM

The Department of Finance and Administration yesterday announced that a sales tax enacted by voters in Crittenden County for “repairing, improving, renovating, equipping, operating and maintaining” Crittenden Regional Hospital will not be collected. CRH closed and filed for bankruptcy last month

The Crittenden County Circuit Court last Friday issued an order enjoining collection of the one percent county-wide sales tax. The Circuit Court ruling came after Sen. Keith Ingram sued DF&A in order to get a temporary restraining order to stop the collection of the tax, which was set to go into effect today. Everyone involved agreed that the penny sales tax for the hospital should now be rescinded, but there was disagreement about the means to do so; the county attorney believed that the collection of the tax could only be legally stopped by a new popular vote undoing the tax.

Ingram said that his immediate goal was to stop collection until the tax could be overturned by a new referendum or other means. According to Crittenden County Judge Woody Wheeles, the Quorum Court has set an election for Dec. 9 for voters to decide whether to repeal the tax. 

DF&A stated that the local sales tax rate for Crittenden County would remain at the current rate of 1.75 percent "until further notice." The agency's release after the jump: 

LITTLE ROCK, AR— Yesterday, the Department of Finance and Administration received notice that the Crittenden County Circuit Court issued an order on September 26, 2014 enjoining collection of the one percent (1%) county-wide sales and use tax levied for “repairing, improving, renovating, equipping, operating and maintaining” the Crittenden Regional Hospital. This order was issued in Ingram vs. Weiss, et al., CV-2014-296.

A notice issued by the Department of Finance and Administration dated July 16, 2014 indicated the Crittenden County sales and use tax would be increasing by 1% to 2.75% effective October 1, 2014.

As a result of this court order the local tax rate for Crittenden County will remain at the current rate of 1.75%. Taxpayers should continue to collect and report the Crittenden County tax at the rate of 1.75% until further notice.

Taxpayers having issues with regards to this Notice should call telephone number (501) 682-7104 to discuss their issues.

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