BENTONVILLE -- Benton County justices of the peace have endorsed allowing J.B. Hunt Transport Services to recover some money spent in sales tax on the company's ongoing expansion of its Lowell campus.
The Finance Committee approved the company's participation in the state's "Tax Back" program as authorized under the Consolidated Incentive Act of 2003. The Act allows businesses expanding to apply for sales tax rebates on material and equipment used in the expansion. The company can ask for rebates for expenses incurred over a four-year period after entering into an agreement with the Arkansas Economic Development Commission. The company must document its costs and submit the request for reimbursement to the state Department of Finance and Administration.
What’s next
The resolution expressing Benton County’s support for J.B. Hunt Transport’s participation in the state’s Tax Back program is set to be considered by the county’s Committee of the Whole on July 17 and if approved by the committee sent on to the Quorum Court for final approval on July 26.
Source: Benton County
The proposal goes to the Committee of the Whole and then to the Quorum Court for consideration later this month.
Tom Allen, justice of the peace for District 4 and chairman of the Finance Committee, said the tax rebates encourage growth and while they cost the county some tax revenue initially will provide benefits to the area in the future. The county's sales tax revenue pays for government operations supported by the general fund.
"It's going to cost us something, but not as much as you might think," he said. "But it helps bring in new businesses or expand existing businesses that will provide more services, more jobs, pay more property taxes. I am all for it. I think it's a good investment. It costs something in taxes on the front end, but you more than get it back."
Allen said the county has approved other companies in the past. According to information from the Benton County Clerk's Office, the county has approved similar resolutions dating to April 2005 when a resolution was approved for Regenerated Services in Bentonville. County records show at least seven such resolutions, including one for J.B. Hunt in July 2015.
"This is for their technology center, which is currently under construction," Allen said. "I call it the 'Third Tower.' It's similar in size to the building they recently completed."
According to a news release from the company, J.B. Hunt completed a four-story, 144,000-square-foot office building in 2017. That building was to house highway services, sales and e-commerce, along with other departments. Company spokesmen didn't respond Friday to messages left over three days seeking comment. Gov. Asa Hutchinson, along with state and company officials, announced in 2015 the company had plans to expand its Lowell headquarters and add up to 1,000 jobs over a six-year period.
Raymond Burns, president and CEO of the Rogers-Lowell Area Chamber of Commerce, said the tax back program has been used for most large-scale new businesses and business expansions in the area. Burns said it's one of the incentives approved by the state to help attract new business and encourage existing businesses to stay and grow.
"Probably 80 percent of the projects we do we use this program," Burns said. "It helps close deals; it helps the companies make the decisions. It shows Arkansas and the county and the communities are interested in economic growth and development."
Lowell Mayor Eldon Long said the new building is meant to house the company's Information Technology operations and training. Long said the Lowell City Council endorsed the company's participation in the tax back program June 19.
"It's not the first time J.B. Hunt has utilized this program," Long said. "It's a way of recapturing some of the taxes they have paid on construction, office equipment, appliances, computers and a wide variety of equipment. It helps businesses expand and grow in Lowell."
NW News on 07/15/2018