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14-199-102. Compensation of school district in lieu of taxes.
Arkansas Code — all titles (historical 2020) · legal_authorities
14-199-102. Compensation of school district in lieu of taxes.
(a)(1) Upon approval of the governing body of a municipality, a utility owned by the municipality may compensate annually a public school district in which the utility is wholly or partly located in an amount not to exceed the amount the utility would pay in taxes if it were subject to taxation.
(2) The amount shall be based on a percentage not in excess of twenty percent (20%) of the value of all properties of the utility located in the public school district computed at the millage rate currently in effect in that district. The valuation may be determined by a certified public accountant who is personally familiar with the assets of the utility.
(3) The purpose of this subsection is to permit, but not to require, municipally owned utilities to compensate public school districts for loss of taxes resulting from the utilities' tax-exempt status.
(b)(1) The council of any city of the first class, city of the second class, or incorporated town in this state owning an electric utility system and deriving revenues from it may agree to and make payments in lieu of taxes to any school district, all or a portion of which is within the city limits of the municipality, when some or all of the property of the electric utility system of the municipality is within the boundaries of the school district.
(2) The amount of the payment in lieu of taxes to be made to the school district shall be such amount as the council of the municipality shall determine, not to exceed the amount that would be due the school district in taxes if the property of the electric utility system of the municipality located within the boundaries of the school district was privately owned and subject to taxation by the school district.
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Source: Arkansas Code — historical release 78 (November 6, 2020) · 14-199-102
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Record provenance
Stable record: arkansas_code:legal_authorities:14-199-102
Source file: gov.ar.code.title.14.odt
Pages: Not recorded – Not recorded
Passage SHA-256: aff72d4cb408cc0fedce31374d6155bac3ce8c170095d92ebf72c1a359ad34ad
Source location: content.xml paragraph 44472
Stored source content
14-199-102. Compensation of school district in lieu of taxes.
(a)(1) Upon approval of the governing body of a municipality, a utility owned by the municipality may compensate annually a public school district in which the utility is wholly or partly located in an amount not to exceed the amount the utility would pay in taxes if it were subject to taxation.
(2) The amount shall be based on a percentage not in excess of twenty percent (20%) of the value of all properties of the utility located in the public school district computed at the millage rate currently in effect in that district. The valuation may be determined by a certified public accountant who is personally familiar with the assets of the utility.
(3) The purpose of this subsection is to permit, but not to require, municipally owned utilities to compensate public school districts for loss of taxes resulting from the utilities' tax-exempt status.
(b)(1) The council of any city of the first class, city of the second class, or incorporated town in this state owning an electric utility system and deriving revenues from it may agree to and make payments in lieu of taxes to any school district, all or a portion of which is within the city limits of the municipality, when some or all of the property of the electric utility system of the municipality is within the boundaries of the school district.
(2) The amount of the payment in lieu of taxes to be made to the school district shall be such amount as the council of the municipality shall determine, not to exceed the amount that would be due the school district in taxes if the property of the electric utility system of the municipality located within the boundaries of the school district was privately owned and subject to taxation by the school district.
(3) Payments in lieu of taxes shall be made only from surplus electric revenues.
(4) “Surplus electric revenues,” as used in this subsection, means electric revenues remaining after adequate provision shall have been made for expenses of operation, maintenance, and depreciation and all requirements of ordinances, orders, and indentures securing bonds theretofore issued or securing bonds thereafter issued to finance the cost of acquiring, constructing, reconstructing, extending, or improving the electric utility system have been fully met and complied with.
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