Small business owners skeptical over LR sales tax plan - FOX16.com ...

LITTLE ROCK, AR - Some business owners are expressing concern over the plan to raise the sales tax in Little Rock. The proposal calls for raising the sales tax by 1.25 percent, bringing the capital city in line with smaller cities like Conway.

The lunch rush at Apple Spice Junction on South University is the busiest time for this box lunch eatery and caterer. Owner Drew Crumpler loves his busy business but says a new sales tax proposal isn't good for his business.

"It's my assessment from property taxes, sales tax, soda tax, what other taxes do we have? We just have a bunch of taxes," Crumpler says.

But city leaders in Little Rock say those taxes are not anywhere close enough to keep up with infrastructure deficiencies and personnel needs for police and fire as well as public works and parks.

Half a percentage point of the tax would expire after eight years and raise an estimated $204 million dollars for capital improvements. The remaining three-quarter of a cent increase would generate another $307 million in on-going operating costs.

Debby Hinson says her concerns are two-fold. She just opened Natural State mattresses three months ago and her inventory is big-ticket items

?When people are trying to fit something into their budget it makes it very difficult to add a lump like that on there," Hinson says. "I understand that things keep costing more but there is also a way of just throwing another tax on too.?

At-large city director Joan Adcock says the sales tax plan is a positive package, but it is not perfect.

"My hope is that citizens would go by and pick it (the proposal) up and study it," Adcock says. "We can have a few of the wants in there but I think that $511 million dollars is a lot of money to ask the taxpayers to payout in sales tax."

And businesses like Apple Spice Junction don't want to pass that on to their customers.

City Director Brad Cazort said Wednesday the proposal is a good starting point.

?I think the city staff did a great job at listening to the needs brought up by citizens during our forums in the all the wards,? Cazort says.

The current proposal would put the sales tax in Little Rock even with Conway, higher than North Little Rock, Sherwood and Maumelle but still lower than cities like Jacksonville, Fayetteville and Fort Smith.

Source: http://www.fox16.com/s/mQrTamhtO0mKRZlySZEZFw.cspx

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