There has been a lot of talk going around about the reason for the three different votes taken for the purchase of the new sanitation trucks. What follows is Board Vice-Chair, Tucker Omohundro’s explanation as to why three votes were necessary.
Here is a link to the original trash truck motion, which was made and passed by the Hot Springs Village POA Board on February 17, 2021. Omohundro said when the Board originally voted on February 17, sales tax was not listed in the calculations.
Coreena Fetterhoff, HSVPOA Controller, and Board Treasurer said, “the 2nd vote was to account for the fact they thought we were tax-exempt and therefore taxes and a 1% finance charge increase (for not being tax-exempt) needed to be included in the proposal. During this 2nd vote, the size of the trucks was changed to avoid the Federal excise tax as well. The decrease in size avoided the FET and not pursuing the asphalt patch trailer covered the cost of the sales tax increase. This vote took place on April 1, 2021.”
In general, Arkansas nonprofit corporations are not exempt from sales taxes in the state; however, there are a few exceptions for certain charities, churches, and food distribution agencies. HSVPOA is a non-profit corporation but we are required to pay sales tax on our purchases.
Fetterhoff stated, “then two weeks later the Board had to come back for the third vote because during that time frame an 11% steel surcharge was imposed increasing the price by almost $38k.”
As time was of the essence, the second and third votes were taken by an email vote because staff needed to lock in the interest rate and the price.
By Cheryl Dowden with help from Tucker Omohundro & Coreena Fetterhoff
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