BLYHEVILLE, Ark. (AP, abc24.com) - Officials of a northeast Arkansas city are asking residents to approve a sales tax proposal next month that would help cover about $3 million in unpaid payroll taxes and penalties owed to the Internal Revenue Service.
The IRS has placed liens on property owned by the city of Blytheville, surprising officials who believed the March 13 vote would buy them some time.
The proposal calls for officials to collect a 1 percent sales tax for 15 months, generating about $3.5 million of revenue.
City Attorney Mike Bearden told the Arkansas Democrat-Gazette IRS officials never said they wouldn't file liens, but he and other city officials believed liens wouldn't be levied until after the election.
Mayor James Sanders says the city is paying $10,000 a month on the debt.
Information from: Arkansas Democrat-Gazette, http://www.arkansasonline.com