Magnolia Arkansas Voters Approve Sales Tax Increase
- Jun 27, 2012 | Susan McLain

Yesterday, voters in Magnolia, Arkansas “…approved raising the city’s sales tax during a special election…supporting the measure 616-276.”
The sales tax increase takes the city retail sales tax “…from three-fourths of a cent to a full penny effective Jan. 1, 2013.” The city council expects the tax to generate roughly $500,000.
The other option was to increase property tax. The positive vote for the sales tax indicates to Mayor Parnell Vann that “…the people of Magnolia have said that they like the governing body we have, and they want us to move this city forward, and we’re going to.”
Other decisions need to be made now such as how to use the funds, how to manage the funds—pay-as-you-go or issue bonds. Improvements on the list include police and fire department pensions, restoring cuts made in the 2012 budget, new headquarters for the police and street repairs. Additional items include fire trucks and new police-fire substation.
Sam Whitelaw, City Councilman, is “…happy that the City Council has avoided the potential creation of a property tax millage to support the city’s general fund.” He indicated that “…Tuesday’s vote will lead the way out of what…was ‘Frankly, a crisis we were under.’”
Many voters, according to Councilman James Moore, “…felt they were supporting the city’s policemen and firefighters through their ballots.”
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