Maas v. City of Mountain Home

Lavenski R. Smith, Justice.

This is an illegal-exaction case. Appellants, Citizens of Mountain Home, Arkansas, contend Mountain Home (“The City”), appellees herein, violated Article 16, Section 11, of the Arkansas Constitution by using sales-tax proceeds contrary to exclusive uses contained in City Ordinance No. 646. We agree and reverse.

On April 9, 1981, the City passed Ordinance No. 646, which levied a one-cent sales tax. The following month, the City conducted a special election wherein the voters could approve or reject the proposed tax. Prior to the election, on April 23, 1981, the City…