§ 15-11-503 - Definitions. - Arkansas Statutes

15-11-503. Definitions.

As used in this subchapter:

(1) "Agreement" means an agreement entered into pursuant to 15-11-506 by and between the Director of the Arkansas Economic Development Commission and an approved company with respect to a tourism attraction project;

(2) "Approved company" means any eligible company that is seeking to undertake a tourism attraction project and is approved by the director pursuant to 15-11-505 and 15-11-506;

(3) "Approved costs" means:

(A) Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the acquisition, construction, equipping, and installation of a tourism attraction project;

(B) The costs of acquiring real property or rights in real property in connection with a tourism attraction project and any costs incidental thereto;

(C) The cost of contract bonds and insurance of all kinds that may be required or necessary during the course of the acquisition, construction, equipping, and installation of a tourism attraction project which is not paid by the vendor, supplier, deliveryman, contractor, or otherwise provided;

(D) All costs of architectural and engineering services, including, but not limited to, estimates, plans and specifications, preliminary investigations, and supervision of construction and installation, as well as for the performance of all the duties required by or consequent to the acquisition, construction, equipping, and installation of a tourism attraction project;

(E) All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, and installation of a tourism attraction project;

(F) All costs required for the installation of utilities in connection with a tourism attraction project, including, but not limited to, water, sewer, sewage treatment, gas, electricity, and communications, and including off-site construction of utility extensions paid for by the approved company; and

(G) All other costs comparable with those described in this section;

(4) "Director" means the Director of the Arkansas Economic Development Commission or the director's designated representative;

(5) "Eligible company" means any corporation, limited liability company, partnership, registered limited liability partnership, sole proprietorship, business trust, or any other entity that invests a minimum of five hundred thousand dollars ($500,000) in a high-unemployment county or one million dollars ($1,000,000) in any other county for the purpose of constructing, operating, or intending to operate a tourism attraction project, whether owned or leased, within the state that meets the standards promulgated by the director pursuant to 15-11-504;

(6) "Final approval" means the action taken by the director authorizing the eligible company to receive inducements under 15-11-507 and 15-11-509;

(7) (A) "High unemployment" means an unemployment rate equal to or in excess of one hundred fifty percent (150%) of the state's average unemployment rate for the preceding calendar year as specified by statewide annual labor force statistics compiled by the Department of Workforce Services when the state's annual average unemployment rate is six percent (6%) or below.

(B) When the state's annual average unemployment rate is above six percent (6%), "high unemployment" means equal to or in excess of three percent (3%) above the state's average unemployment rate for the preceding calendar year as specified by statewide annual labor force statistics compiled by the Department of Workforce Services;

(8) (A) "Increased state sales tax liability" means that portion of an approved company's reported state sales, that is, gross receipts tax liability resulting from taxable sales of goods and services to its customers at the tourist attraction for any monthly sales tax reporting period after the approved company provides the certification required by 15-11-507(b), which exceeds that reported state sales tax liability for sales to its customers for the same month in the calendar year immediately preceding that certification.

(B) If an approved company purchases an existing tourism attraction that was selling goods and services at the time of purchase and that may or may not have been entitled to the benefits of this subchapter prior to such a purchase, the "increased state sales tax liability" resulting from any investments in the tourism attraction by the new owners means that portion of the approved company's reported state sales, or gross receipts, tax liability resulting from taxable sales of goods and services to its customers at the tourism attraction for any monthly sales tax reporting period after the approved company provides the certification required by 15-11-507(b), which exceeds the reported state sales tax liability for sales made by the seller of the tourism attraction for the same month in the calendar year immediately preceding that certification.

(C) The prohibitions against disclosure of confidential tax information provided in 26-18-303 shall not apply for purposes of computing the credit available under this subchapter;

(9) "Inducements" means the Arkansas sales tax credit as prescribed in 15-11-507 or the Arkansas income tax credit as prescribed in 15-11-509, or both;

(10) "Investment threshold" means the minimum amount of approved costs that must be incurred in order to qualify for eligibility;

(11) (A) (i) "New full-time permanent employee" means a position or job which was created as a result of a tourism attraction project and which is filled by one (1) or more employees or contractual employees who were Arkansas taxpayers during the year in which the tax credits or incentives were earned or claimed.

(ii) The employee or employees must work an average of at least thirty (30) hours per week.

(B) However, in order to qualify for the provisions of this subchapter, a contractual employee must be offered a benefits package comparable to a direct employee of the business seeking incentives under this subchapter;

(12) "Payroll" means the total taxable wages, including overtime and bonuses, paid during the preceding tax year of the approved company to new full-time permanent employees hired after the date of the signed financial incentive agreement;

(13) (A) "Tourism attraction" means:

(i) Cultural or historical sites;

(ii) Recreational or entertainment facilities;

(iii) Areas of natural phenomena or scenic beauty;

(iv) Theme parks;

(v) Amusement or entertainment parks;

(vi) Indoor or outdoor plays or music shows;

(vii) Botanical gardens; and

(viii) Cultural or educational centers.

(B) A tourism attraction shall not include:

(i) Lodging facilities, unless the facilities constitute a portion of a tourism attraction project and represent less than sixty percent (60%) of the total approved costs of the tourism attraction project or unless the project meets the special rules outlined in 15-11-510;

(ii) Facilities that are primarily devoted to the retail sale of goods, unless the goods are created at the site of the tourism attraction project or if the sale of goods is incidental to the tourism attraction project;

(iii) Facilities that are not open to the general public;

(iv) Facilities that do not serve as a likely destination where individuals who are not residents of the state would remain overnight in commercial lodging at or near the tourism attraction project;

(v) Facilities owned by the State of Arkansas or a political subdivision of the state; or

(vi) (a) Facilities established for the purpose of conducting legalized gambling.

(b) However, a facility regulated under the Arkansas Horse Racing Law, 23-110-101 et seq., or the Arkansas Greyhound Racing Law, 23-111-101 et seq., shall be a tourism attraction for purposes of this subchapter for any approved project as outlined in subdivision (13)(A) of this section or for an approved project relating to pari-mutuel racing at the facility and not for establishing a casino or for offering casino-style gambling; and

(14) "Tourism attraction project" or "project" means the:

(A) Acquisition, including the acquisition of real estate by leasehold interest with a minimum term of ten (10) years, construction, and equipping of a tourism attraction; and

(B) Construction and installation of improvements to facilities necessary or desirable for the acquisition, construction, and installation of a tourism attraction, including, but not limited to:

(i) Surveys;

(ii) Installation of utilities, which may include water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; and

(iii) Off-site construction of utility extensions to the boundaries of the real estate on which the facilities are located,

all of which are to be used to improve the economic situation of the approved company in a manner that will allow the approved company to attract persons.