The 1% increase in Little Rock’s city sales tax approved by voters in 2011 generated $46.4 million in its first full year, Finance Director Sara Lenehan told city directors last week.
The 1% tax includes a 0.375% portion dedicated to capital improvement projects, which will sunset in 2022, and a permanent 0.625% tax for operations.
The permanent portion brought in almost $29 million in 2012, Lenehan said, with the capital portion generating $17.4 million. Collections are about what was expected for the year, she said, but wide swings in monthly collections make it difficult to predict 2013 revenues.
“The tax receipts have been volatile and continued to be volatile over the past couple of months,” she said.
The levy is in addition to Arkansas’ 6% state sales tax and Pulaski County’s 1% tax.