By JOEL PHELPS | arkadelphian.com
An endeavor to set aside $30,000 annually to incentivize local retailers with tax dollars failed to materialize in a monthly meeting of the Clark County Quorum Court.
Along with a proposed ordinance, District 4 Justice Albert Neal (D-Arkadelphia) pitched his idea to fellow justices, who appeared to appreciate the idea but ultimately agreed to adhere to the Arkansas Constitution, which specifies that tax dollars cannot be used to incentivize retail businesses.
Clark County collects a voter-approved 1/2-cent sales tax, which funds the public economic development corporation that oversees the spending of the fund. District 7 Justice Jenna Scott (R-Joan) argued that Neal’s proposal would go against current laws that outline how economic development sales tax collections may be spent.
“My feeling is that if we pull money out of those funds dedicated for economic development — specifically for small businesses — then you’re trying to side-step the rules that are already there by the [state] legislature and constitution,” Scott said. “While I want to support small businesses, I don’t feel like this is appropriate.”
Neal countered that his proposal spelled out the county would withhold $30,000 from EDCCC funding, adding that rules would be established on how the funds would be spent. Scott argued that county-level lawmakers cannot pass ordinances superseding state laws.
District 3 Justice Vanilla Hannah (D-Arkadelphia) asked who would oversee the spending of the $30,000. Neal pointed out that his ordinance stated the funding would be held under the supervision of the county treasurer and distributed by the quorum court.
District 9 Justice Andrea Angle (R-Okolona) asked how the funding would be disbursed; Neal said the quorum court would create guidelines establishing disbursement.
The court soon gave the floor to Shelley Short, CEO of the Arkadelphia Regional Economic Development Alliance. Reading from the constitution, Short explained that no county or city shall become a stockholder in any company, association or corporation, or loan credit to any corporation, etc. She went on to list the economic development projects approved for tax funding under the constitution: manufacturing, production and industrial, research technology and development, recycling, distribution centers, call centers, warehouse facilities, job training facilities, regional or national corporate headquarters, or sports complexes.
“To me, it’s very clear that the constitution, as it stands right now, is saying that the county cannot appropriate money to any entity” except for those listed in the supreme document. Short added that the already-established EDCCC incentivizes companies, and there’s no limit to a company’s size to apply for funding. “You just have to be one of the types of entities listed in the constitution,” she said, emphasizing that primary job creation is a requirement for receiving tax incentives.
After some further discussion between Short and Neal, the justice moved to read the proposed ordinance. Neal got a second from District 2 Justice Michael Ankton (D-Arkadelphia). The motion to hear the ordinance read, however, died in a 2-8 vote, with only Neal and Ankton voting in support.
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