APPROPRIATION ORDINANCE NO. 97- 10 BE IT ENACTED BY THE QUORUM COURT OF THE COUNTY OF SEBASTIAN, STATE OF ARKANSAS, AN ORDINANCE TO BE ENTITLED: AN ORDINANCE LEVYING A ONE PERCENT SALES AND USE TAX WITHIN SEBASTIAN COUNTY, ARKANSAS; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO. WHEREAS, at the special election held on June 21, 1994, a majority of the qualified electors voting on the question approved the levy of a 1% sales and use tax within Sebastian County, Arkansas under the authority of Title 26, Chapter 74, Subchapter 2 of the Arkansas Code of 1987 Annotated (the “Authorizing Legislation”); NOW, THEREFORE, BE IT ORDAINED by the Quorum Court of Sebastian County, Arkansas: Article 1. Under the authority of the Authorizing Legislation, there is hereby levied a rate of one percent (1% tax on the gross receipts from the sale at retail within the County of all items which are subject to the Arkansas Gross Receipts Act of 1941, as amended (A.C.A. §§26-51-101, et seq.), and the imposition of an excise (or use) tax on the storage, use, distribution or other consumption within the County of tangible personable property subject to the Arkansas Compensating Tax Act of 1949, as amended (A.C.A. §§26-53-101, et seq.), at the rate of one percent (1%) of the sale price of the property or, in the case of leases or rentals, of the lease or rental price (collectively, the “Sales and Use Tax”). Collections of the Sales and Use Tax shall be divided among the county and the municipalities in the County based upon population in the unincorporated areas of the County and the population in each municipality. The Sales and Use Tax shall be levied and collected only to a maximum tax of $25 for each single transaction, and shall be determined and collected in accordance with the provisions of A.C.A. §26-74-220 (Supp. 1995). Article 2. “Single transaction” is defined according to the nature of the goods purchased as follows: A. When two or more instruments of travel in which or by which any person or property is, or may be, transported or drawn, including but not limited to, on-road vehicles, whether required to be licensed or not, off-road vehicles, farm vehicles, airplanes, water vessels, motor vehicles, non- motorized vehicles, and mobile homes, are sold to a person by a seller, each individual instrument of travel, whether part of a “fleet” sale or not, shall be treated as a single transaction for the purpose of the Sales and Use Tax. B. The charges for any utility service, which is subject to the Sales and Use Tax, and which is furnished on a continuous basis, whether such service is paid daily, weekly, monthly or annually, shall be computed in daily increments, and each such daily charge increment shall be considered to be a single transaction for the purposes of the Sales and Use Tax. C. For the purposes of the Sales and Use Tax, a single transaction regarding sales of general construction materials and supplies to contractors, builders and other buyers and on which an aggregate sales (or use) tax figure has been reported and remitted to the State of Arkansas is defined as follows: Any one-time purchase for a single project with a single delivery site even though delivery of the purchased materials or supplies may take place over a period not to exceed thirty (30) calendar days and even though separate deliveries may be reflected by separate invoices or receipts. D. When two or more items of major equipment or machinery are sold, each individual unit shall be treated as a single transaction for the purposes of the Sales and Use Tax. E. For any other items, dry goods and other tangible personal property and/or services not otherwise expressly covered in this Section, a single transaction shall be deemed to be any single sale which is reflected on a single invoice, receipt or statement, on which an aggregate sales tax figure has been reported and remitted to the State of Arkansas. Article 3. All ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Article 4. The provisions of this Ordinance are separable and in the event that any section or part hereof shall be held to be invalid, such invalidity shall not affect the remainder of this Ordinance. PASSED: May 20, 1997. DATED: May 20, 1997 APPROVED: Signature of W. R. Harper, Jr. COUNTY JUDGE ATTEST: Signature of Doris M. Tate COUNTY CLERK