Little Rock City Board Sets November 5 Sales Tax Vote
Little Rock’s Board of Directors will vote on July 30 to decide whether to call a special election on November 5 to consider a 1% city sales tax increase proposed by Mayor Frank Scott Jr.
Mayor Scott introduced ordinances to put the sales tax increase to voters, which would be divided into two parts: a three-eighth cent tax for general operational purposes and a five-eighth cent tax for general capital purposes.
If approved, the tax would take effect on January 1 and remain in place until December 31, 2034. The proposal includes a contingency fund to cover unexpected expenses and provisions for excess revenue allocation upon reaching a certain threshold.
This sales tax increase is part of a larger plan to transform and grow the downtown area through the Downtown Little Rock Master Plan, which was accepted by the board on July 16.
The master plan includes goals to double the downtown population in the next decade, expand public transportation and trail systems, and capitalize on the Arkansas River. However, some projects depending on this tax increase might be delayed or cancelled if it fails.
The board has been working on downtown development, with several directors expressing enthusiasm for the master plan. Vice Mayor Kathy Webb noted its potential impact on local churches, while Ward 5 Director Lance Hines emphasized the importance of a vibrant downtown for the city’s growth.
The board will not meet on July 23, but will reconvene on July 30 to vote on calling the special election.
This is not Mayor Scott’s first attempt at a sales tax increase, having previously proposed one in 2021 that voters rejected. The current proposal marks another significant step in his efforts to secure funding for his vision for Little Rock.