LR Mayor Expects Sales Tax Holiday Revenue Loss
By: Brittney Johnson, KARK 4 News
Updated: August 3, 2011
Many families are anxious to take advantage of the upcoming tax-free weekend, but Little Rock Mayor Mark Stodola says it could be a major blow to the city.
That's because two days of no taxes is estimated to cost local governments about $700,000 in revenue. Little Rock has one of the lowest sales taxes in the state, so it might fare better than most, but it's also in a budget crunch.
"We don't do what congress does we don't deficit spend. We pass a balanced budget and if we don't meet the projections, we come in and make reductions," said Mayor Stodola.
The mayor says the city budgeted for this year before the tax-free weekend passed through the state legislature, so they were not prepared to lose hundreds of thousands of dollars and may have to make cuts before the year's end.
That's because two days of no taxes is estimated to cost local governments about $700,000 in revenue. Little Rock has one of the lowest sales taxes in the state, so it might fare better than most, but it's also in a budget crunch.
"We don't do what congress does we don't deficit spend. We pass a balanced budget and if we don't meet the projections, we come in and make reductions," said Mayor Stodola.
The mayor says the city budgeted for this year before the tax-free weekend passed through the state legislature, so they were not prepared to lose hundreds of thousands of dollars and may have to make cuts before the year's end.
