The Jonesboro City Council’s Finance Committee has approved a proposed sales tax to be considered by the full council. If approved by the council next week, a one cent sales tax would be voted on during a special election November 10th. 7/8 cents of the tax would go toward funding 20 transportation projects in the city and would generate just over 14 million dollars a year. The remaining 1/8 cent of the tax would go toward the development of the Jonesboro Economic Development Commission and would generate almost two million dollars a year. If approved, money would be collected starting next June and the tax would last for 10 years. Jonesboro Mayor Harold Perrin talked about the need for the 7/8 cent tax.
“Over the last two years, the city of Jonesboro has been aggressively looking and working with our engineering department and the Arkansas Highway and Transportation Department on major projects we need to do with our infrastructure. It came up as the number one weakness that Jonesboro had in a recent survey that was released by the Jonesboro Chamber of Commerce. We came up with a total number of projects that are worth over $246 million.”
Mayor Perrin says the money generated could help build a railroad overpass at Highway 18 and Nettleton, which is expected to cost 15 million dollars. Improvements are needed at Red Wolf Boulevard and East Johnson Avenue, where a projected flyover on State Highway 351 could be constructed with other improvements. That project could cost 40 million dollars. Those are two of the 20 total projects that are designed to help traffic flow in Jonesboro over the next 10 years. Perrin says the total cost of the projects is just over 167 million dollars. The State Highway and Transportation Department would fund 68 million dollars of the projects, while the city picks up the remaining 98 million dollars in projects.
“If we did $150 million in local funds, we could realistically look at a 25% match by the state,” Perrin told the committee. “A lot of the matches are 80/20, 70/30, 60/40. It is all based on capacity and safety. If we can get the match on what we raise through this sales tax, then we could do $225 million worth of projects.”
He tells about the 1/8 cent sales tax that would go toward development of the Jonesboro Economic Development Commission.
“The goals of this Commission would be to create jobs through attracting industry, as well as to acquire land. Since 1988, the Chamber has acquired 998 acres and currently has about 240 acres left, which would be good for one or two more major projects. Of course that depends on what a potential buyer would want to acquire. This is important for the development of Jonesboro.”
Jonesboro Citizen Harold Carter voiced his opposition to the proposed sales tax. He says the tax punishes those who are not able to pay.
“It will be taken from those people who have to spend all of their money to exist. It won’t be taken from the wealthy in this town to build these roads. It won’t even be taken proportionately by those who are wealthy; it basically will be a flat tax. It is not a good policy to exempt the rich and make sure the poor pays full price.”
Jonesboro Alderman Rennell Woods says he understands Carter’s concerns, but also sees the tax as necessary because of the future growth of Jonesboro.
“This is a whole new economy that we are living in. When you are talking about 10 years down the road, and with our growth, I think it will take everyone working together to make this happen. I know not everyone is for tax and I am not for taxes, but some things we have to do because the growth is a wave that is coming that we haven’t seen before. Our community changes day to day, and I encourage you to look at how we can all play a part in this.”
The proposed sales tax will go before the full Jonesboro City Council next Tuesday night.
