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ALTHEIMER LOOKS TO ANNEX LAND, CLAIM REVENUE

By Jeannie Nugent/OF THE COMMERCIAL STAFF
Friday, December 7, 2007 10:01 AM CST

ALTHEIMER — Mayor Donald Robinson wants to claim the city’s fair share of revenue by annexing the north-west side of U.S. 79 and the Southeast Arkansas Regional Planning Commission is extending a helping hand.

The handful of businesses sitting just outside the city limits currently only collect state and county taxes on each sale — which totals 7.5 percent. If the property is annexed into Altheimer, patrons of those companies would be charged an extra 1 percent, for a total of 8.5 percent sales tax on goods sold.

“We’re missing out on these businesses that are not paying,” said Robinson. “We’re missing the biggest portion of the businesses.”

The mayor is currently working with Allan Skinner, director of the Southeast Arkansas Regional Planning Commission to compose the petition to annex the properties and to work with the affected businesses.

Robinson said he has not contacted the business owners himself, but is leaving it up to Skinner.

“I don’t want to show my hand just yet,” said Robinson. “I’d like for them to agree to do it. I think they probably would. They pay it anyway. I’m not trying to cause a problem.”

Those businesses will actually pay much more, not just on the sales and use taxes, but also on property taxes. When the Dollarway School District absorbed the Altheimer-Sherrill district two years ago, it increased taxes for patrons on that side of the Arkansas River from 32.6 mills to 42.3. If the businesses on the northwest side of U.S. 79 are annexed by Altheimer, they will begin paying an additional 5 mills, bringing the total to 47.3, for a combined increase of 14.7 mills.

Robinson said he hopes to work with the businesses to complete a voluntary annexation and avoid taking it to the voters at the polls.

“They already do business with us. They pay water bills to Altheimer and our citizens use their services,” he said. “I want to see whether they agree to it without any complications. One way or the other, they have to pay taxes.”

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