The true reason for the annexation is Benton, Arkansas wants to collect the franchise tax and city sales tax on Salem residents and Almatis utilities. Benton is having a cash flow problem and needs more revenue. This would result in about a $2 million / year windfall.

Benton issued bonds for a $26 million sewer project to serve Gabbard's Coldwater Creek subdivision and extend utilities west of the river, for a 500 acre development and a few users. With the downturn in building, they are looking for a way to make nearly $2 million/year in bond payments.

Benton, Arkansas is already getting a windfall on undeserved franchise taxes and sales taxes for many people who have a Benton address but are outside the city limits. All residents outside the city limits need to look at their utility bills, cell phone bills, home phones, trash collection, cable TV, satellite TV, to see if they are incorrectly being charged city sales tax. If so, they should contact the provider and demand a refund.

In addition, you should check the invoices for lumber, furniture and other items that have been delivered to your house to make sure that you have not been charged city sales tax for items delivered to a Benton mailing address, that is outside the city limits. The state sales tax law has recently changed so that sales tax is collected based on the delivery location, and not the sales location.

By Worker Bee