Constitution of Arkansas (2025 publisher edition) — Amendment 62: LOCAL CAPITAL IMPROVEMENT BONDS (CONST.

Publisher edition notice: This collection preserves the complete constitutional appendix of the Secretary of State’s 2025 Election Laws and Constitution compilation: its preamble, twenty original articles, schedule and 104 published amendments, including annotations and explicit repealed notices. Repealed notices remain historical publisher context. Later amendments have not been independently verified.

Amendment 62

AMEND. 62. LOCAL CAPITAL IMPROVEMENT BONDS (CONST.
AMENDS. 13, 17, 25 AND 49, REPEALED; AND SECTIONS ADDED)
Publisher’s Notes. With respect to the requirement for
approval of bond issues, this amendment may be super-
seded by Ark. Const. Amend. 65.
This amendment was proposed by H.J.R. No. 1 (see Acts
1983, p. 2305) and filed in the office of the Secretary of
State on Mar. 29, 1983. It was approved at the general
election on Nov. 6, 1984, by a vote of 395,336 for and
342,404 against.
Ark. Const. Amend. 62, § 11, repealed Ark. Const.
Amends. 13, 17, 25, and 49.
§ 1. Local capital improvement bonds authorized — Election — Taxes — Limit on
indebtedness — Suspension of tax levy.
(a) The legislative body of a municipality or county, with the consent of a majority of the
qualified electors voting on the question at an election called for that purpose, may authorize the
issuance of bonds for capital improvements of a public nature, as defined by the General
Assembly, in amounts approved by a majority of those voting on the question either at an election
called for that purpose or at a general election. The General Assembly shall prescribe a uniform
method of calling and holding such elections and the terms upon which the bonds may be issued.
If more than one purpose is proposed, each shall be stated separately on the ballot. The election
shall be held no earlier than thirty (30) days after it is called by the legislative body. The tax to
703 Amend. 62, § 1 BONDS

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retire the bonds may be an ad valorem tax on real and personal property. Other taxes may be
authorized by the General Assembly or the legislative body to retire the bonds.
(b) The limit of the principal amount of bonded indebtedness of the municipality or county
which may be outstanding and unpaid at the time of issuance of any bonds secured by a tax on
real or personal property, except for bonds issued for economic development projects pursuant to
Section 2 hereof, shall be a sum equal to ten percent (10%) for a county or twenty percent (20%)
for a municipality of the total assessed value for tax purposes of real and personal property in the
county or municipality, as determined by the last tax assessment.
(c) The municipality or county may from time to time, suspend the collection of a levy, when
not required for the payment of its bonds, subject to the covenants with the bondholders. [As
amended by Const. Amend. 89, § 14; Const. Amend. 97.]
Publisher’s Notes. Ark. Const. Amend. 89, § 14,
amended this section effective January 1, 2011. Amend-
ment 89 was proposed by H.J.R. 1004 during the 2009
Regular Session and adopted at the 2010 general election
by a vote of 448,711 for and 250,167 against.
Before amendment by Amend. 89, subsection (a) read:
“The legislative body of a municipality or county, with the
consent of a majority of the qualified electors voting on the
question at an election called for that purpose, may autho-
rize the issuance of bonds, to bear interest at a rate not to
exceed two percent (2%) per annum above the Federal
Reserve Rate at the time of the election authorizing the
bonds, for capital improvements of a public nature, as
defined by the General Assembly, in amounts approved by
a majority of those voting on the question either at an
election called for that purpose or at a general election. The
General Assembly shall prescribe a uniform method of
calling and holding such elections and the terms upon
which the bonds may be issued. If more than one purpose
is proposed, each shall be stated separately on the ballot.
The election shall be held no earlier than thirty (30) days
after it is called by the legislative body. The tax to retire the
bonds may be an ad valorem tax on real and personal
property. Other taxes may be authorized by the General
Assembly or the legislative body to retire the bonds.”
Ark. Const. Amend. 97, which amended this section, was
proposed by S.J.R. 16 during the 2015 Regular Session and
adopted at the November 2016 general election by a vote of
689,980 for and 366,020 against. The amendment substi-
tuted “economic development projects” for “industrial de-
velopment purposes” in (b), and was effective thirty days
after the election pursuant to § 7-9-119.
Amend. 97, § 1, provided: “INTENT. The intent of this
amendment to the Arkansas Constitution is to encourage
job creation, job expansion, and economic development.”
§ 2. Issuance of bonds to secure and develop industry — Levy of tax — Suspension of
collection — Limit on tax levy.
(a) In addition to the authority for bonded indebtedness set forth in Section 1, any municipal-
ity or county may, with the consent of the majority of the voters voting on the question at an
election held for that purpose, issue bonds in sums approved by such majority at that election for
the purpose of financing economic development projects within or near the county or municipality
holding the election.
(b) To provide for payment of principal and interest of the bonds issued pursuant to the section,
as they mature, the municipality or county may levy a special tax, not to exceed five (5) mills on
the dollar of the taxable real and personal property therein. However, the municipality or county
may, from time to time, suspend the collection of such annual levy when not required for the
payment of its bonds. In no event shall any parcel of real and personal taxable property be subject
to a special tax levied under the authority of this Section in excess of five (5) mills for bonds issued
under this Section.
(c) Other taxes may be authorized by the General Assembly or the legislative body to retire the
bonds.
(d) As used in this section:
(1) “Economic development projects” means the land, buildings, furnishings, equipment,
facilities, infrastructure, and improvements that are required or suitable for the development,
retention, or expansion of:
(A) Manufacturing, production, and industrial facilities;
(B) Research, technology, and development facilities;
(C) Recycling facilities;
(D) Distribution centers;
(E) Call centers;
(F) Warehouse facilities;
(G) Job training facilities;
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(H) Regional or national corporate headquarters facilities; and
(I) Sports complexes designed to host local, state, regional, and national competitions,
including without limitation baseball, softball, and other sports tournaments; and
(2) “Infrastructure” means:
(A) Land acquisition;
(B) Site preparation;
(C) Road and highway improvements;
(D) Rail spur, railroad, and railport construction;
(E) Water service;
(F) Wastewater treatment;
(G) Employee training which may include equipment for such purpose; and
(H) Environmental mitigation or reclamation.
(e) The General Assembly, by a three-fourths vote of each house, may amend the provisions of
subsection (d) of this section so long as the amendments are germane to this section and
consistent with its policy and purposes. [As amended by Const. Amend. 97; Acts 2019, No. 1072,
§ 2.]
Publisher’s Notes. Ark. Const. Amend. 97, which
amended this section, was proposed by S.J.R. 16 during the
2015 Regular Session and adopted at the November 2016
general election by a vote of 689,980 for and 366,020
against. The amendment substituted “economic develop-
ment projects” for “facilities for the securing and develop-
ing of industry” in (a) and added (c) through (e). The
amendment was effective thirty days after the election
pursuant to § 7-9-119.
Amend. 97, § 1, provided: “INTENT. The intent of this
amendment to the Arkansas Constitution is to encourage
job creation, job expansion, and economic development.”
§ 3. [Repealed.]
Publisher’s Notes. Ark. Const. Amend. 97, which re-
pealed this section, was proposed by S.J.R. 16 during the
2015 Regular Session and adopted at the November 2016
general election by a vote of 689,980 for and 366,020
against. Ark. Const. Amend. 97 was effective thirty days
after the election pursuant to § 7-9-119.
Before repeal, this section read:
“ § 3. Sale of bonds — Procedure.
“The bonds described in Section 2 hereof shall be sold
only at public sale after twenty (20) days advertisement in
a newspaper having a bona fide circulation in the munici-
pality or county issuing such bonds; provided, however,
that the municipality or county may exchange such bonds
for bonds of like amount, rate or interest, and length of
issue.”
§ 4. Maximum rate of tax stated on ballot — Borrowing prior to issuance of bonds.
The maximum rate of any special tax to pay bonded indebtedness as authorized in Sections 1
and 2 hereof shall be stated on the ballot. After such bond issue has been approved by the
electorate, the municipality or county may, prior to the issuance of the bonds, borrow funds on an
interim basis, not to exceed three (3) years, and pledge to the payment thereof the tax approved
by the voters.
§ 5. Special tax constitutes special fund — Disbursement of surplus.
The special tax for payment of bonded indebtedness authorized in Sections 1 and 2 hereof shall
constitute a special fund pledged as security for the payment of such indebtedness. The special
tax shall never be extended for any other purpose, nor collected for any greater length of time
than necessary to retire such bonded indebtedness. Upon retirement of the bonded indebtedness,
any surplus tax collections which may have accumulated shall be transferred to the general funds
of the municipality or county. [As amended by Const. Amend. 97.]
Publisher’s Notes. Ark. Const. Amend. 97, which
amended this section, was proposed by S.J.R. 16 during the
2015 Regular Session and adopted at the November 2016
general election by a vote of 689,980 for and 366,020
against. The amendment deleted “except that tax receipts
in excess of the amount required to retire the debt accord-
ing to its terms may, subject to covenants entered into with
the holders of the bonds, be pledged as security for the
issuance of additional bonds if authorized by the voters.
The tax for such additional bonds shall terminate within
the time provided for the tax originally imposed” following
“indebtedness” in the second sentence. The amendment
was effective thirty days after the election pursuant to
§ 7-9-119.
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Amend. 97, § 1, provided: “INTENT. The intent of this
amendment to the Arkansas Constitution is to encourage
job creation, job expansion, and economic development.”
§ 6. Conduct of elections.
The General Assembly may enact laws governing the conduct of elections authorized by this
Amendment. Absent the enactment of such laws, such elections shall be held, called and
conducted in accordance with the laws governing elections generally. The results of such election
shall be published in a newspaper of general circulation in the county or municipality (as the case
may be) and any contest of such election or the tabulation of the votes therein shall be brought
within thirty (30) days after such publication or shall be forever barred.
§ 7. Provisions self-executing.
The provisions of this Amendment shall be self-executing.
§ 8. Taxes levied and bonds authorized prior to amendment.
Taxes levied prior to the effective date of this Amendment shall continue in force until
abolished, reduced, or increased as provided by law. All bonds and other evidences of indebted-
ness authorized prior to the effective date of this Amendment shall be governed by the
Constitutional provision and laws in effect at the time of authorization.
§ 9. Joint project of various governing bodies — Compact agreement elections.
(a) Whenever two or more cities of the First or Second Class, or incorporated towns, and/or one
or more counties and the school districts therein, desire to join together in a combined effort to
secure and develop economic development projects within one or more of such cities, towns,
counties, and share in the increased revenues estimated to be received by the city, town, or
county, or school district, in which the economic development project or projects are to be located,
they may, upon adoption by the governing bodies of each such city, town, school district, or county,
enter into a compact setting forth the terms by which each of the participating cities, towns,
school districts, and counties is to share in the revenues to be derived from the location of an
economic development project within the compact area through the combined efforts of the
various participating cities, towns, school districts, and counties. Upon adoption of such compact
by the governing bodies of the participating cities, towns, school districts, and/or counties, the
county court of each of the counties involved shall cause a special election to be called within not
more than forty-five (45) days from the date of the filing of such compact with the county court.
At such special election, the qualified electors of each of the cities, towns, school districts, and
counties shall vote on whether to approve the compact and the method of sharing in increased
revenues to be derived by the city, school district, and/or county in which the proposed economic
development project is to be located among the various participating cities, towns, counties, and
school districts. The ballot at such election shall be in substantially the following form:
“FOR the establishment of an economic development
compact and the sharing of revenues to be derived
from additional taxes to be generated by new
economic development projects □
AGAINST the establishment of an economic develop-
ment compact and the sharing of revenues to be
derived from additional taxes to be generated by new
economic development projects □”
Said election shall be conducted in accordance with the election laws of this State, and the
results thereof tabulated and certified to the County Clerk in the manner now provided by law.
If a majority of the qualified electors voting on the question vote in favor of the creation of the
compact, and the sharing of revenues to be derived from new economic development projects
located in the compact area, the said compact shall be implemented in accordance with the terms
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thereof. If a majority of the qualified electors voting on said issue vote against issue at said
special election, no additional election on said issue may be held within one (1) year from the date
of said election. The results of said election shall be proclaimed by the county court of each of the
counties in which the county and/or cities and towns, or school districts, are located. The results
of said election shall be conclusive unless attacked in the courts within thirty (30) days.
(b) As used in this section:
(1) “Economic development projects” means the land, buildings, furnishings, equipment,
facilities, infrastructure, and improvements that are required or suitable for the development,
retention, or expansion of:
(A) Manufacturing, production, and industrial facilities;
(B) Research, technology, and development facilities;
(C) Recycling facilities;
(D) Distribution centers;
(E) Call centers;
(F) Warehouse facilities;
(G) Job training facilities; and
(H) Regional or national corporate headquarters facilities; and
(2) “Infrastructure” means:
(A) Land acquisition;
(B) Site preparation;
(C) Road and highway improvements;
(D) Rail spur, railroad, and railport construction;
(E) Water service;
(F) Wastewater treatment;
(G) Employee training which may include equipment for such purpose; and
(H) Environmental mitigation or reclamation.
(c) The General Assembly, by a three-fourths vote of each house, may amend the provisions of
subsection (b) of this section so long as the amendments are germane to this section and
consistent with its policy and purposes. [As amended by Const. Amend. 97.]
Publisher’s Notes. Ark. Const. Amend. 97, which
amended this section, was proposed by S.J.R. 16 during the
2015 Regular Session and adopted at the November 2016
general election by a vote of 689,980 for and 366,020
against. The amendment, in (a), in the first sentence,
substituted “economic development projects” for “indus-
tries”, “economic development project or projects” for “in-
dustry or industries”, and “economic development project”
for “industrial plant”, substituted “economic development
compact” for “industrial development compact” twice in the
form, and made similar substitutions throughout, and
added (b) and (c).
Amend. 97 was effective thirty days after the election
pursuant to § 7-9-119.
Amend. 97, § 1, provided: “INTENT. The intent of this
amendment to the Arkansas Constitution is to encourage
job creation, job expansion, and economic development.”