Fact Sheet Available for Upcoming Hempstead County Sales Tax Election

by Kristin Higgins - September 28, 2022

Voters in Hempstead County will have a local ballot measure to decide when they vote in the November general election.

The Public Policy Center at the University of Arkansas System Division of Agriculture partnered with the Hempstead County Extension Office to produce a fact sheet explaining the countywide ballot issue. 

Voters will decide:

• A permanent 0.25% countywide sales and use tax dedicated to economic development.

Hempstead County officials are asking voters to approve a 0.25% sales tax for economic development purposes. If approved, the countywide sales tax rate would be 2.25%.

The sales tax would generate an estimated $750,000 a year. According to the ballot title and the ordinance Quorum Court members approved calling for the election, revenues from the proposed 0.25% tax would be “for the sole use and benefit of a public corporation for economic development to be formed under Arkansas statutes to fund economic development projects and services.”

A public corporation for economic development already exists in Hempstead County - The Hempstead Economic Development Corporation (HEDC). The county currently pays HEDC $40,000 a year for economic development assistance.

County officials have publicly shared more specific plans saying that if approved, the revenue from the 0.25% sales tax would be committed to the Hempstead Economic Development Corporation. The president of the corporation has said there are no specific projects earmarked for the funding, but they would use the state’s definition of economic development for projects and services. This would involve using the revenue for infrastructure improvements, job training, and business incentives for eligible economic development projects.

Download the fact sheet at: https://www.uaex.uada.edu/business-communities/voter-education/docs/Hempstead_County_2022_Sales_Tax_Election_Fact_Sheet.pdf 

Find More Information
The voter guide produced by the Public Policy Center includes more information about the Hempstead County ballot issue, including what supporters and opponents say, information about surrounding county sales taxes, and answers to voters’ frequently asked questions. Find similar fact sheets for statewide ballot issues at www.uaex.uada.edu/ballot.