$1.3M owed to state nothing to fret over, county judge tells justices

By JOEL PHELPS | arkadelphian.com

Clark County will repay the State of Arkansas $1.3 million in sales tax rebates, but the news doesn’t come as a surprise to county Judge Troy Tucker.

Tucker explained at a Monday meeting of the quorum court that the chunk of money is owed thanks to an undisclosed entity or entities that take part in sales tax rebates. He said the state Department of Finance and Administration notified the county recently, and that the county will commence repayment in 18 monthly installments of $75,000.

However, Tucker said, it’s “not a shock” that the funds are going back into the state’s coffers, as he explained that sales tax receipts seemed inflated. Also, he said, county Treasurer Karen Arnold was prepared for the news.

“It won’t be a huge financial burden,” Tucker assured justices of the peace.

According to the DFA, businesses in Arkansas are eligible for a rebate or refund of additional local sales tax paid to their suppliers on business purchases exceeding $2,500. All businesses are eligible to claim rebates, including those that are not registered to collect sales tax. Government agencies, schools, colleges and universities, churches and nonprofit organizations may apply for the tax rebates.

Which local entity or entities is responsible for claiming the rebates isn’t known, Tucker explained, as the DFA does not disclose that information. There may be a loophole for figuring it out, however, and that’ll be a job for his successor, said Tucker, whose term ends Dec. 31.

In other county business, the court heard a quarterly report on activity from the Economic Development Corp. of Clark County. Ahead of the presentation, Arkadelphia Alliance CEO Shelley Short first acknowledged the Project Pulse data center endeavor, saying the resulting public backlash reinforced the importance of listening to the community.

To that end, the EDCCC will be considering a measure later this month to allow public comment at its meetings. Short said a draft of the policy has been in the hands of the organization’s legal team, and will be discussed at the July 28 meeting at Fairfield Inn & Suites.

Justice Jenna Scott said she hopes the policy will allow for public comment prior to the EDCCC casting a vote on an issue. Using the EDCCC’s April agenda as an example, Short said the public could not have known that Project Pulse would be a data center based on the code name applied to the project.

Justice Stuart Thomas differed, saying that allowing public comment is a “slippery slope” for industry recruitment. Thomas argued that companies will not take kindly to the public asking questions that the Alliance may not legally be able to answer because of non-disclosure agreements, or NDAs.

Overall, justices applauded the effort to allow public comment at EDCCC meetings. Justice Michael Ankton, a Democrat eyeing the county judge’s seat, asked Short whether the EDCCC had the option of tabling the land sale for Project Pulse. Yes, Short assured, the board has that option.