The passage of two one-half cent sales taxes to construct and equip and operate a new 100-bed county jail back on July 12 will start being felt on Sunday.
For Booneville and Magazine that means the sales tax collection rate will jump to 10.5 percent for goods and services other than grocery. For final price computation that would be the sale price times 1.105.
The rate in Paris will be 10 percent (Sales price times 1.1). In Blue Mountain the rate will be 9.5 percent (sales price times 1.095).
In Booneville the increase for grocery will climb to 5.5 percent or a sale price times 1.055.
The State of Arkansas assesses 6.5 percent in sales tax on goods and services other than grocery items, which is subject to just 1.5 percent in taxes. With Booneville residents having added two one percent charges and a county sales tax adopted in 1982, the effective rate for grocery purchases was 4.5 percent until July’s vote.
By assessing itself a second one percent sales tax, Logan County becomes the 30th county in the state with at least a level of 2 percent in sales tax. County rates in the state vary from no taxes in two counties and 0.5 percent in two others to a high of 3.25 percent in one county and 3 percent in two others.
Logan County’s passage of a tax accounted for two of the 14 to pass in the state this year. One of those came after a larger increase request was one of only four shot down by voters.
Although collection of the tax will not start until Sunday its proceeds, which will start being realized by the county in March, are already being spent. Surety for a $10 million bond issue acquired by the county, funds for the bonds could start being spent on Nov. 29.
The county can issue up to $13 million in bonds through the sales tax question passed with 70 percent favor in July, but only $10 million have been sold. Gack previously stated the remaining $3 million would be held in reserve.
Besides the site and paperwork necessary for the bonds, the project requires engineering and blueprints before the construction manager can begin the process of building the jail, which is expected to take about a year.
The jail will be built on county-owned property on Lowder Road in Paris, near the Logan County equipment yard.
The existing Logan County Detentions Center was built in the 1980s, and has been cited by regulators as overcrowded, understaffed and unsafe.