AR SB361

One or more local governments (counties or municipalities) may organize industrial development authorities as public benefit corporations and political subdivisions of the state to secure and develop industry and foster economic development

Industrial development authorities are governed by a board of directors with 3-year terms, appointed by participating local governments in proportion to their population, with an odd number of total members and at least one representative per local government

Authorities may establish and operate commerce/industrial parks, research facilities, job training facilities, air cargo operations, military depots, rail lines, and short-line railroads; they may issue bonds, acquire property through purchase or condemnation, and enter contracts

Bonds issued by these authorities are exempt from state, county, and municipal taxes (including income, inheritance, and estate taxes) and are obligations only of the issuing authority—not backed by state or local government credit

Industrial facilities owned by these authorities are exempt from ad valorem taxation, though lessees or purchasers must make payments in lieu of taxes totaling at least 35% of what ad valorem taxes would be unless approved for a lesser amount by the AEDC Director and Chief Fiscal Officer