HJR1014
A Constitutional Amendment Concerning Economic Development In The State Of Arkansas; And Authorizing The General Assembly To Provide For The Creation Of Economic Development Districts To Promote Economic Development.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
This House Joint Resolution proposes a constitutional amendment to authorize the Arkansas General Assembly to create economic development districts within cities, counties, or cooperative areas. It grants the state the power to provide loans, grants, and infrastructure support to promote economic growth, job creation, and industrial expansion. The amendment allows these districts to issue bonds for project financing, exempting them from certain constitutional debt limits and other existing fiscal constraints. Furthermore, it explicitly permits municipalities to provide funding or credit to these districts and clarifies that properties within an economic development district may be exempt from standard property taxation, except for charges levied by the district itself. The bill also establishes specific definitions for economic development projects and services, including facilities for manufacturing, research, technology, and sports complexes. If passed by the voters, this amendment would take effect on January 1, 2027.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries would be local governments seeking flexible economic development tools, private corporations and developers involved in industrial or commercial projects, and businesses located within the newly created economic development districts that may receive financial incentives or tax exemptions. Additionally, construction firms, chambers of commerce, and local economic development agencies would benefit from increased funding and infrastructure opportunities.
Who Might Suffer?
The primary groups negatively impacted would be entities dependent on a broad, consistent property tax base, such as local school districts, counties, and municipalities, which might see a reduction in tax revenue due to exemptions granted within the districts. Additionally, taxpayers in surrounding areas could face a higher relative tax burden if public funds are diverted to support private development or if tax exemptions shift the fiscal cost of local services away from the businesses operating within these districts. Finally, those who advocate for stricter constitutional limits on government debt and spending may view the circumvention of established debt and taxation protections as a negative development.
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