DALLAS — Little Rock, Ark., voters approved an increase in the sales tax rate Tuesday that will generate $196 million for capital improvements over the next 10 years and $32 million a year for operations.

The increase, from 0.5% to 1.5%, will go into effect Jan. 1, 2012. It will be the first time the city sales tax rate has gone up since it was first levied in 1994. The election was the sixth time since 1981 that city voters have decided on a tax hike.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.