§ 15-11-506 - Contracts.
15-11-506. Contracts.
(a) Upon granting final approval, the Director of the Arkansas Economic Development Commission may enter into an agreement with an approved company with respect to its tourism attraction project.
(b) The terms and provisions of each agreement shall include, but shall not be limited to:
(1) The amount of approved costs, which shall be determined by negotiations between the Director of the Arkansas Economic Development Commission and the approved company;
(2) (A) (i) The eligibility date for incurring project costs.
(ii) The eligibility date shall be the date by which the approved company shall have completed the tourism attraction project.
(B) Within three (3) months of the completion date, the approved company shall document the actual cost of the tourism attraction project through a certification of such costs by an independent certified public accountant acceptable to the Director of the Arkansas Economic Development Commission; and
(3) The following provisions:
(A) (i) The term shall be ten (10) years from the later of:
(a) The date of the final approval of the tourism attraction project; or
(b) The completion date specified in the agreement, if the completion date is within two (2) years of the date of the final approval of the tourism attraction project.
(ii) However, the term of the agreement may be extended for up to two (2) additional years by the Director of the Arkansas Economic Development Commission with the advice and consent of the Director of the Department of Finance and Administration, if the Director of the Arkansas Economic Development Commission determines that:
(a) The failure to complete the tourism attraction project within two (2) years resulted from unanticipated and unavoidable delay in the construction of the tourism attraction project;
(b) The tourism attraction project as originally planned will require more than two (2) years to complete; or
(c) The failure to complete the tourism attraction project within two (2) years resulted from a merger, acquisition, or other change in business ownership or business structure;
(B) In any sales tax reporting period during which an agreement is in effect, if the increased state sales tax liability of the approved company exceeds the state sales tax credit available to the approved company, then the approved company shall pay the excess to the state as sales tax;
(C) Within forty-five (45) days after the end of each calendar year, the approved company shall supply the Director of the Arkansas Economic Development Commission with such reports and certifications as the Director of the Arkansas Economic Development Commission may request, demonstrating to the satisfaction of the Arkansas Economic Development Commission that the approved company is in compliance with the provisions of this subchapter; and
(D) The approved company shall not receive a credit against the Arkansas sales tax imposed by 26-52-301 et seq., with respect to any calendar year if in any calendar year following the first year of the agreement the tourism attraction project is not operating and open to the public on a regular and persistent basis.
(c) The agreement shall not be transferable or assignable by the approved company without the written consent of the Director of the Arkansas Economic Development Commission.
(d) If the approved company utilizes sales tax credits which are subsequently disallowed, then the approved company will be liable for the payment to the Director of the Department of Finance and Administration of all taxes resulting from the disallowance of the credits, plus applicable penalties and interest.
(e) The Director of the Arkansas Economic Development Commission shall provide a copy of each agreement entered into with an approved company to the Director of the Department of Finance and Administration.