Clark County Economic Development Sales Tax Referendum

Abstract

Clark County, like many counties in Arkansas is struggling financially. From 2000 until 2005, Clark County lost 900 jobs. This represented a 7.5% decline in total jobs in the county. County schools had a 5% decrease in enrollment. These factors caused a decrease in the county tax base which has contributed to financial distress for Clark County. The County Quorum Court has identified a need to begin programs to enhance economic development in the county. The Quorum Court voted unanimously to place before the voters a ballot issue to increase the county’s sales tax by one half percent. If passed, the sales tax would generate approximately 1.3 million dollars. Proceeds from the tax would be used to fund and promote economic development projects and activities to stimulate the local economy. Since the University of Arkansas, Division of Agriculture Cooperative Extension Service is involved in public policy education, the Clark County Quorum Court asked the Cooperative Extension Service to assist in developing an educational program to educate citizens on the sales tax proposal. The Clark County Cooperative Extension Service worked with local leaders to develop an educational fact sheet and a power point presentation to help educate the public on the proposed issue. There were 750 fact sheets distributed to citizens and local decision makers. The information was developed in a neutral/non-biased format. The sales tax issue passed by a two to one margin.

Educational Needs

The Clark County Economic Development Sales Tax program was prepared to provide the citizens of Clark County with information to help them make an informal decision about this tax issues. The quorum court asked that the Extension Service help provide this information. As with any tax issue, the Quorum Court wanted to make sure the information passed was correct and developed in a neutral/ non-biased format.

In this educational program, the Extension Agent wanted to explain how the proceeds from the tax would be used to fund and promote economic development projects and activities.

The educational methods used were :

Developing a power point presentation

Developing an educational fact sheet

Providing a bullet statement page for Quorum Court members to use.

Picture Clemons*, J. H. 1 , Payne, J. R. 2 1. Extension Agent, University of Arkansas, Division of Agriculture, Cooperative Extension Service, Clark County, Arkadelphia, Arkansas, 71923 2. Public Issues Education Instructor, University of Arkansas, Division of Agriculture, Cooperative Extension Service, Clarksville AR 72830 United States Department of Agriculture, University of Arkansas, and County Governments Cooperating The Arkansas Cooperative Extension Service offers its programs to all eligible persons regardless of race, color, national origin, religion, gender, age, disability, marital or veteran status, or any other legally protected status, and is an Equal Opportunity Employer. Goal To provide neutral/ non-biased information for the citizens of Clark County regarding a Sales Tax Referendum. In conducting this program, The Extension Service did not take a position in favor of or against the issue itself.

Objectives

To educate citizens on the Sales Tax Referendum including why the issue is on the ballot, how the revenue will be used, the cost to taxpayers, and what supporters and opponents say about this issue.

To encourage citizens to get out and vote.

Results A county-wide vote was conducted on June 12, 2007. The Sales Tax Referendum passed by a 2 to 1 margin. Since the vote, the five person committee was appointed by the Clark County Judge and approved by the Quorum Court. This local sales and use tax would be levied for a period of seven (7) years. Using 2006 figures, based on the Quorum Court’s plan of creating a 0.5% sales tax, $1,317,405.74 per year will be generated.