By Rob Moritz
Arkansas News Bureau

LITTLE ROCK — Bills that would allow cities and counties to extend a local sales and use tax beyond their expiration date were recommended by a Senate panel Tuesday.

Senate Bill 320 by Sen. Steve Bryles, D-Blytheville, would allow cities to refer to voters an extension of the expiration date for a local sales and use tax. SB 321 would do the same for counties.

As an example, Bryles said, Mississippi County, which is in his Senate district, has a half-cent sales tax designated for economic development and the tax is to sunset in 2013. Under SB 321, voters in Mississippi County could be asked to renew the tax before it expires.

“The way the law is now, the tax has to sunset and then there is a delay before you can revote the tax,” Bryles said after the Senate Committee on City, County and Local Affairs endorsed the two bills.

“If the tax sunsets in midstream, we can’t commit to whatever the (economic development) project is to get that done,” he said.

Sen. Joyce Elliott, D-Little Rock, spoke for the bills, noting that cities and counties need some flexibility as they deal with the recession and slowing economy.

“I think something like this is really important,” she said. “Things are changing so quickly … and we’re trying to deal with a global economy.”

Don Zimmerman, executive director of the Arkansas Municipal League, also spoke for the bill.

SB 267, a companion bill to SB 320 and 321, would allow a city or county to delay the effective date of a sales and use tax by up to 36 months from the day the tax hike was approved by voters.

That measure has been approved by the Senate and was endorsed Tuesday by the House Revenue and Taxation Committee.