MARCH 31, 2005 - Posted at 4:00 p.m. CST
LITTLE ROCK, AR - The Arkansas House approved legislation today to expand property tax breaks through development districts.
The House voted 69-16 in favor of the legislation by Jonesboro Democrat Dustin McDaniel. His bill would encourage cities and counties to create tax increment financing districts. Property taxes within the districts would be capped to make them more favorable for development.
The bill next goes to the Senate.
The House today also voted down a bill that would have limited tax breaks allowed under the development districts.
TIF districts were created by a state constitutional amendment approved by voters in 2000. The amendment says taxing units, like cities and counties, can create TIF districts to freeze property tax assessments at their current levels so that developers would be more likely to build in those areas.