HB1114
To Allow Tax Revenue Credited To The Advertising And Promotion Commission To Be Used For Employing A Staff Member To Develop The City's Economy.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1114 amends the existing Arkansas law regarding the authorized use of funds by city advertising and promotion commissions. Currently, these commissions collect tax revenue intended for tourism and promotion efforts. The bill expands the legal authority of these commissions, explicitly allowing them to use these tax revenues to employ staff members specifically tasked with city-wide economic development. By doing so, the legislation provides municipalities more flexibility in how they allocate tourism-related tax funds to support broader economic growth initiatives. The act is set to be effective for assessment years beginning on or after January 1, 2023.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are city governments and their respective advertising and promotion commissions, as they gain expanded discretion over how to utilize tax revenues. Additionally, local communities may benefit from dedicated staff focused on economic development initiatives that could stimulate job growth and investment.
Who Might Suffer?
The primary groups potentially negatively impacted are those entities or interests that rely on current advertising and promotion tax revenue for specific tourism marketing, cultural promotion, or local event funding. By diverting or prioritizing funds toward general economic development staffing, the resources available for traditional tourism-related advertising may be reduced.
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