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City officials are contemplating adding a city sales tax.

"We're going to have to start thinking about it in the near future," Mayor Jackie Crabtree said at a recent City Council committee of the whole meeting. "We have a lot of projects."

"Our sales tax continues to grow but we need to look at where the percentages of the 1 cent city sales tax goes. We need to look at another -- a 1-cent sales tax or a 1-cent capital expenditure tax. I have a chart, most cities around here are at 9.5 to 10 percent," Crabtree said, explaining that Pea Ridge is at 8 percent.

He said a one-half-cent sales tax would raise $4 million.

"With a city sales tax," Sandy Button, city clerk, said, "it affects everybody."

"I'd rather pay 9.5 percent in my town than in Rogers and get the benefit of it. With the new high school coming in, the growth is going to continue," Button said.

City building inspector Tony Townsend said the sales tax is charged at point of purchase, not at point of delivery, so that sales tax on construction materials bought out of town and delivered to Pea Ridge does not go to Pea Ridge.

"We've done really, really good with sales tax over the years. but as we're growing, we have to consider that as more people move in, they'll expect more and it will cost money," Crabtree said. "I don't think it's something we want to put to a vote this year, but maybe early next year.

General News on 05/02/2018

Print Headline: Tax considered

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