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SJR 15

Honorably Discharged Veteran's Property Tax Exemption Amendment

2025 Regular Session Introduced by Anne Charnock

SJR 15 allows Arkansas to create Economic Development Districts, boosting growth through loans, grants, and tax exemptions, benefiting local economies and property owners.

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Bill Summary · SJR 15

Summary of SJR 15: Constitutional Amendment for Economic Development in Arkansas

Bill Number: SJR 15
Title: 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.
Status: Approved by the Governor
Introduced: February 11, 2025
Classification: Joint Resolution

Purpose and Intent

SJR 15 proposes an amendment to the Arkansas Constitution aimed at enhancing economic development within the state. The primary goal is to empower the General Assembly to create Economic Development Districts (EDDs) that can facilitate economic growth through targeted financial programs, including loans and grants.

Key Provisions

The bill includes several significant changes to the Arkansas Constitution:

  1. Creation of Economic Development Districts (EDDs):

    • EDDs can be established within cities, counties, or cooperative areas to promote economic development.
    • The General Assembly is authorized to create programs for loans and grants of public money for public purposes related to economic development.

  2. Bond Issuance:

    • EDDs may issue bonds to finance projects, which:
      • Are payable from any funds received by the district.
      • Do not count towards public debt limits.
      • Are exempt from certain revenue bond limitations.

  3. Taxing Authority:

    • The amendment allows for the delegation of taxing power for economic development purposes.
    • Property within an EDD is exempt from property tax unless levied by the district itself.

  4. Funding and Lending:

    • Municipalities can fund or lend credit to EDDs.
    • EDDs can appropriate or obtain money for private entities involved in economic development projects.

  5. Voter Approval:

    • Any issuance of bonds or obligations for loans and grants must be approved by a vote of the respective county, city, or municipality.

Impact

  • Local Tax Entities: If approved by voters, local tax entities may experience a decrease in property tax collections due to the tax exemptions provided for properties within EDDs.
  • Property Owners: Owners of property within an EDD will not be required to assess their business personal property, and real property will not be subject to mandatory county-wide reappraisals.
  • Economic Development: The establishment of EDDs is expected to stimulate economic growth by attracting businesses and facilitating infrastructure improvements.

Procedural Aspects

  • The bill was introduced on February 11, 2025, and underwent several legislative actions before being approved by the Governor on April 22, 2025.
  • An amendment (S1) was adopted, which removed the expansion of eminent domain powers and the authority for EDDs to subsidize utility infrastructure.

Conclusion

SJR 15 represents a significant step towards enhancing economic development in Arkansas by allowing for the creation of specialized districts that can leverage public funds and streamline processes for economic growth. The amendment aims to provide local governments with the tools necessary to foster a more favorable economic environment, ultimately benefiting the state's economy and its residents.

Compiled from official sources — confirm details with the bill’s official record.

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