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Levying taxes, annual budget passage requirements We answer Frequently Asked Questions concerning levying of taxes and annual budget requirements for county government.
Q
: When shall the quorum court set the levy of all county ad valorem taxes and other taxes as required by law? Arkansas Code Annotated 14-14-904(b) LEVY OF TAXES AND MAKING OF APPROPRIATIONS. (1)(A)(i): “The quorum court at its regular meeting in November of each year shall levy the county taxes, municipal taxes and school taxes for the current year.” It should be noted that unless the county has been granted an extension from the state due to a rollback that the levy must be done in the November meeting. It has long been a suggestion of the Association of Arkansas Counties that the court not adjourn the November meeting without levying the taxes. Recess the meetings instead and open the meeting back up at a later date to take up this issue and finish the business of that meeting before adjournment.
Q
: Can the quorum court amend the levy ordinance after its passage? The short answer to this question is the quorum court can’t raise or lower the levy after it has been set at the November meeting. This question has been opined in Attorney General Opinion 1986-625 and an excerpt from that opinion states: “When a statute prescribes a certain time for the levying court to convene and levy taxes, a levy by it at any other time is invalid.” It also is quoted in another excerpt: “Since quorum courts are required specifically to levy taxes at only one time each year, it is my opinion that any attempt to re-levy taxes at any other time is void.” However the county court has been given authority to correct errors and that authority lies in Arkansas Code Annotated 14-14-904(b) (4): “If a county court determines that the levy of taxes by the quorum court is incorrect due to clerical errors, scrivener’s errors, or failure of a taxing entity to report the correct millage rate to the quorum court, the county court shall issue an order directing the county clerk to correct the error in order to correct the millage levy. “(5) If a determination is made under this subchapter or § 26-80-101 et seq. that the taxes 12
levied by the quorum court are out of compliance with Arkansas Constitution, Article 14, § 3, as amended by Arkansas Constitution, Amendments 11, 40, and 74, then upon notice from the Director of the Department of Education, the county court shall immediately issue an order directing the county clerk to change the millage levy to bring the taxes levied into compliance with Arkansas Constitution, Article 14, § 3, as amended by Arkansas Constitution, Amendments 11, 40, and 74.”
Q
: Can the annual budget be passed after the first of the year? The legal answer to this question would be no. As stated in Arkansas Code Annotated 1414-904(b) (1) (ii): “Before the end of each fiscal year, the quorum court shall make appropriations for the expenses of county government for the following year.” The language here states the quorum court shall make appropriations for the expenses of county government for the following year or upcoming year. If an appropriation is not made, the county government would in effect have to shut down until such an appropriation is made. Any attempt to continue the operation of county government without the proper appropriation would run afoul of Arkansas Code Annotated 14-14-1203. Compensation and expense reimbursements generally. (a) APPROPRIATION REQUIRED: “All compensation, including salary, hourly compensation, expense allowances, training expenses, and other remunerations, allowed to any county or district officer or employee thereof shall be made only on specific appropriation by the quorum court of the county.”
Q
: What are the voting requirements to pass the annual budget (or any appropriation ordinance)? This can be found in Arkansas Code Annotated 14-14-907 (d): “Readings and Publication. An appropriation ordinance may be enacted without separate readings or publication prior to passage. However, publication shall be initiated within two (2) calendar days, excepting holidays, after approval of the measure by the county judge. “(e) Voting Requirements. The passage of appropriation ordinances or amendments to exist-
FAQs:
Frequently
Asked Questions
ing appropriation ordinances enacted without separate readings shall require a two-thirds (2/3) vote of the whole number of justices comprising a quorum court. On the passage of Wes Fowler every appropriaGovernmentRelationsDirector tions measure, the yeas and nays shall be called and recorded in the minutes of the meeting.” It should be noted that the language above is permissive. This allows the local governing body a much easier way of dealing with the many adjustments that may be needed during the year and in a much timelier manner, when dealing with appropriations. However, it does not prohibit appropriation ordinances (i.e., annual budget) to be adopted like all other ordinances on three separate readings with a simple majority vote of the whole body; when it becomes a problem to acquire the two-thirds vote requirement. It could, however, take much longer and be more cumbersome. As stated in Arkansas Code Annotated 14-14905 (c) PASSAGE. (1)(A): “On the passage of every ordinance or amendment to an existing ordinance, the yeas and nays shall be called and recorded. “(B) A concurrence by a majority of the whole number of members elected to the quorum court shall be required to pass any ordinance or amendment. “(2)(A) All ordinances or amendments to existing ordinances of a general or permanent nature shall be fully and distinctly read on three (3) different days unless two-thirds (2/3) of the members composing the court shall dispense with the rule. “(B) This subdivision (c)(2) shall not serve to: “(i) Require a vote after each individual reading, but a vote only after the third and final reading; “(ii) Require the ordinance or amendment to be read in its entirety on the first, second, or third reading; or “(C) Restrict the passage of emergency, appropriation, initiative, or referendum measures in a single meeting as provided by law. COUNTY LINES, WINTER 2012
