THE POLK COUNTY
Pulse
Politics 5
December 6, 2023
From the
State House of Representatives
This week, the House Agriof 1997, the Digital Product culture, Forestry and Economand Motion Picture Indusic Development Committee try Development Act of 2009, and subsequent amendments approved two interim studies in 2021 and 2023 have creatregarding tax incentives. The first interim study proed a system of rebates and tax posal approved directs the credits intended to support the committee to study the sales John Maddox production of a film and digital content industry in Arkansas. and use tax exemptions for A study conducted by the Arkanfarm machinery and equipment and the potential use of sales and use tax sas Economic Development Institute exemption cards. found that for every $1 million in tax The committee was informed there is incentive payments, total spending by a disparity between how Arkansas and the motion picture production indussome of the states that surround Ar- try equaled $4.60 million. The study kansas administer sales and use tax ex- also found that $1 million in tax incenemptions for farming, which can lead tive payments had a direct impact on to greater burdens on Arkansas farm- value-added (state GDP) of $2.71 milers than those experienced by farmers lion, with indirect and induced effects adding an additional $1.35 million, for in surrounding states. The committee will determine if a total impact of $4.06 million. there is a potential need for legislation The committee will now study infor the 2025 Regular Session to address creased and additional film incentives the issue. for the long-term development of the The second interim study approved film and television industry in the state regarding tax incentives directs the and state funding strategies to create a committee to study the development of thriving film and television industry in a strategy to incentivize the long-term the state. development of film and television We’ve posted the interim study proposals on our website at www.arkansasproductions in the state. The Motion Picture Incentive Act house.org.
Contact Your Legislators!
John Maddox
John Boozman
john.maddox@ arkansashouse.org 520 Church Avenue Mena, AR 71953 Call: 479-394-6060
1120 Garrison Ave. Suite 2B Fort Smith, AR 72901 Phone: (479) 573-0189 Fax: (479) 575-0553
Terry Rice
Bruce Westerman
Terry.Rice@senate.ar.gov P.O. Box 2195 Waldron, AR 72958 479-637-3100
101 Reserve St. Suite 200 Hot Springs, AR 71901 Phone: (501) 609-9796 Fax: (501) 609-9887
From the
State Senate
The Department of Parks, According to the secretary, Heritage and Tourism pubArkansas has entered new lishes a report every year on advertising markets. Tradithe health of the state’s tourtionally Arkansas promotes its ism industry. tourist destinations in media According to the most reoutlets in nearby urban areas cent statistics available, toursuch as Dallas, Tulsa, Oklahoism in Arkansas has never ma City, Memphis, Saint LouTerry Rice been stronger. is, Kansas City and Chicago. Last year more than 48 million peoAdvertising is placed in a diverse ple visited Arkansas, an increase of sev- array of media in order to focus on en million over the previous year. The families, motorcycle clubs, bus excurmoney they spent, and the jobs they sions, history enthusiasts and people supported, continue to make tourism researching their genealogy. one of the pillars of the Arkansas econWhile Arkansas has long been popomy. Tourism in the state is a $9.2 bil- ular as a destination for outdoor recrelion industry. ation, we can now promote cultural acLast year set a record in collections tivities like fine dining, music festivals of the 2 percent Tourism Reinvestment and art galleries. Tax. It is collected at hotels, marinas, The hospitality industry is already theme parks and retailers that sell tour- preparing for April 8, 2024, when a ism-related items. The revenue pays for total eclipse of the sun will darken the marketing and promotion of the state’s sky along a path from southwest to destinations. northeast. The most impressive place Last year the tax generated $24.3 to experience the eclipse is along the million, which was 16 percent great- so-called “path of totality.” Hot Springs, er than in 2021 and greater than the Little Rock and Jonesboro are in that collections in our best pre-pandemic path. So are Russellville, Morrilton, years. Heber Springs, Fairfield Bay, Mountain According to the secretary of the Home, Flippin, Searcy, Arkadelphia, tourism agency, more than 68,000 jobs Texarkana, Malvern and Conway. in Arkansas are related to the tourism All of Interstate 30, from Texarkana industry. That is a 6.2 percent increase to Little Rock, is within the path of the over 2021. total solar eclipse. Visitors spent $9.2 billion. The largest The eclipse begins at about 12:30 and category was for transportation, which totality begins at 1:46 p.m. and ends at accounted for 31 percent of the total. 1:59 p.m. Most locations in Arkansas Next was spending on food and bev- will experience the total eclipse for two erages, which accounted for 27 percent or three minutes. of the total. Lodging accounted for 17 Times and durations will vary, even percent, recreation and entertainment within the same city, depending on for 13 percent and retail purchases for how far away you are from the center 11 percent. line of the path of the eclipse. The department has placed a reEven though the eclipse will not ocnewed emphasis on promoting Arkan- cur for another five months, it’s possas as a destination for outdoor activ- sible to buy posters, T-shirts, coffee ities such as hunting, fishing, hiking, mugs, throw pillows and other souveclimbing, cycling, bird watching and nirs with eclipse themes. boating.
