Little Rock Mayor Frank Scott Jr. announced Thursday he would push back a potential sales tax increase election until November 2024. The update came one day after the final community meeting where city officials shared proposal details with residents and participated in a Q&A.
“We knew for this race to be successful — and understanding that it’s a seismic decision to move our city forward — we gotta make certain all voices are heard,” Scott said in an interview following the announcement.
Scott was initially aiming to get a 1-cent sales tax increase on the ballot on Nov. 14. The proposed increase would have brought Little Rock’s current 8.625% rate to 9.625%. Of the current tax rate, 1% is levied by the county, 1.125% goes to Little Rock and the remaining 6.5% is taken by the state. The increase would have been split between a five-eights tax to sunset in 10 years for new projects and a three-eighths permanent tax to cover ongoing expenses.
The Little Rock Board of Directors was expected to meet Friday morning for the vote on whether to move the sales tax proposal to the ballot, but now that meeting isn’t necessary.
The next chance to get a sales tax increase to voters would be March 2024, but Scott said that option is off the table because voters will be focused on primary elections.
Scott initially announced plans to pursue this sales tax increase at his state of the city address in March. Information at the time was limited, and some city directors said they were surprised by it. The goal was to get the sales tax increase on the ballot in 2023, but a tornado on March 31 through Little Rock put an unexpected kink in the plan.
Prioritizing tornado clean-up first meant the sales tax idea went on the back burner until this summer. The mayor presented the foundation of his sales tax proposal to city directors near the end of July.
Getting a sales tax increase on the ballot in November required the city to get the proper paperwork to the Pulaski County Clerk’s office by Sept. 5. That didn’t leave much time, and city directors were not fully on board with cramming all the public engagement into two weeks. Regardless, the crew went out to hear from the public.
“What we heard from residents is, ‘We want this and we want a little bit more time so we can educate others,’” Scott said. “I respond to the people, nobody else.”
Putting a pin in the plan now allows for several months of planning and forums, but it also means the residents who were hoping for quick improvements will have to wait.
The proposed plan was estimated to generate $60 million annually. The plan includes millions in new construction and investments in public infrastructure and public safety. It includes money to address homelessness and a hefty amount to support the city’s 63 parks and eight community centers.
Director Antwan Phillips, who has been supportive of the increase, said Thursday he respects Scott’s decision to delay but believes officials know enough about what residents want to move forward now.
“As the youngest member on the board, I don’t want us to be a city that stands still,” Phillips said. “I don’t want us to be so risk-averse that we won’t make the calculated risk to make our city better. … If we’re looking for the sales tax to be perfect, Little Rock is going to be what it has been, instead of what it can be.”
Director Andrea Lewis, the newest to the Little Rock Board of Directors, was also on board with moving forward with the sales tax sooner rather than later.
“I understand why the mayor made the decision he made, but it is a disappointment to me that when certain areas are more affluent they can pause, while more vulnerable areas need the resources sooner,” she said.
Lewis said she supported the proposed sports complex, the most expensive item on Scott’s proposal at $136 million, because it would keep more residents in town and attract tourists.
“We’re always hearing, ‘Fayetteville has this, Bentonville has this.’ They’re paying for it,” Lewis said. “You get what you pay for. … I’m looking forward to working together and moving our city forward.”
During a discussion on the sales tax in July, Director Dean Kumpuris recommended city officials charge forward with public meetings through August and continue on charging afterward if the deadline proved too soon. He said Friday everything Scott proposed was something the city needs, but it’s the job of elected officials to have people understand the projects. The additional time will allow city directors to further communication.
Director Lance Hines said at the beginning stages of the process that he would oppose the sales tax, and nothing seems to have changed there. Vice Mayor Kathy Webb joined in the opposition after a community meeting in her ward on Wednesday.
Director Joan Adcock on Friday said she was “very, very pleased” with Scott’s decision to delay the sales tax increase.
“I don’t think that right now is the time,” she said. “We need more time to listen and prepare what we’ve heard our residents say they want. … We need to start campaigning now for November 2024.”