AR HB1898

Creates the "Local Sales and Use Tax Economic Development Project Funding Act" allowing cities and counties to levy local sales and use taxes of 0.125% to 1% (aggregate maximum 1%) to fund qualifying economic development projects.

Establishes criteria for qualifying economic development projects, requiring sponsors to meet at least 3 of 7 criteria including minimum $10 million investment, creation of 50+ jobs, wages at 110% of state/county average, targeted industry alignment, benefit-to-cost ratio exceeding 2:1, 3/4 city council/quorum court support, or financial incentive agreement with Arkansas Economic Development Commission.

Requires voter approval through special election before tax becomes effective and mandates adoption of written plan describing the project, economic impact, cost-benefit analysis, and revenue estimates before tax implementation.

Defines eligible infrastructure and project costs including land acquisition, site preparation, road/highway improvements, rail construction, water/wastewater services, employee training, and equipment, while excluding routine maintenance and multi-facility expenditures.

Establishes tax administration through Department of Finance and Administration with 3% collection fee deducted before distribution to levying entities; tax expires when maximum revenue target is collected or on specified expiration date approved by voters.