Library Tax Rebate Coming

Property owners in Little Rock can expect repayment soon on a library tax that was levied a year too early by the city.

The five-year, 1 mill increase in the property tax was approved by voters in December 2007.

The increased rate was used to prepare property tax bills sent out by Pulaski County in early 2008.

A group of property owners successfully sued in state circuit court, arguing that the tax increase should not have been levied for another year.

The Arkansas Supreme Court in January upheld the ruling by the district court that the initial year of revenue from the tax increase had to be returned to ­taxpayers.

The city must return $4.7 million of revenue improperly collected in 2008.

Eugene Sayre, a Little Rock attorney who represented the plaintiffs, said he expects a plan for repaying property owners to be presented to the court by the end of July.

The reimbursement will most likely be in the form of a credit on current property taxes, he said.

The city sold $28.9 million of general obligation bonds to expand the Central Arkansas Library System in 2009.

The bonds are supported by the property tax, but the suit did not question the validity of the bonds issued in 2009 or the property tax increase approved by voters.

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