TO CREATE THE ECONOMIC DEVELOPMENT DISTRICT ACT OF 2025.

Senate Bill 647, the "Economic Development District Act of 2025," creates a framework for municipalities, counties, or cooperative areas in Arkansas to establish Economic Development Districts. These districts are designated areas intended to promote economic growth and revitalization. They can fund projects like infrastructure and various forms of economic development construction by utilizing "property charge increments" and "sales charge increments," which are the increases in property and sales taxes generated within the district above a set baseline. The Department of Commerce is tasked with providing support, technical assistance, and resources for the establishment and management of these districts.