AR SB647

Municipalities, counties, or cooperative areas may establish economic development districts for up to 30-year terms (renewable) to promote job creation, economic growth, and diversification within designated boundaries

Property within districts becomes exempt from ad valorem taxes and sales/use taxes, replaced by equivalent "property charges" and "sales charges" collected and distributed by county collectors and the Department of Finance and Administration

Districts are governed by 5-9 member boards with authority to issue bonds, provide grants and forgivable loans, abate charge increments for up to 30 years, exercise zoning authority, and impose additional charges up to 10% above baseline rates

Revenue from charge increments above the baseline year funds economic development construction including manufacturing, technology, retail, housing, healthcare, infrastructure, and broadband projects

Effective date contingent on voter adoption of Senate Joint Resolution 15 at the 2026 general election, with implementation beginning January 1, 2027