LITTLE ROCK — Arkansas is ahead of most states in evaluating the effectiveness of its tax incentives, according to a new report.
The recently released report by the Pew Center on the States listed Arkansas among 13 states it said are “leading the way” and “meeting both criteria for scope of evaluation and/or both criteria for quality of evaluation.”
Twelve states, according to the report, received “mixed results” and the remaining 25 “have not taken the basic steps needed to know whether their incentives are working.”
“Needlessly to say I’m pleased we’re on that list,” Richard Weiss, director of the state Department of Finance and Administration, said Monday. “We spend a lot of time paying attention to those issues when the tax proposals are being debated and then after the fact when they go into effect.”
Weiss said the state over the years has given millions of dollars in tax incentives in an effort to attract new businesses to the state and keep existing ones here.
Independent reporting for Pine Bluff & Jefferson County since 1879.
Gov. Mike Beebe was not due back in the state from a trade mission to China until later Monday. Beebe spokesman Matt DeCample described the report as “reassuring.”
“The governor has said repeatedly that incentives for businesses are something that we take very seriously and are very measured with how we allot them, because you want jobs but you don’t want to give away the farm. This is truly a taxpayer investment in these companies that will bring jobs to the state,” DeCample said.
“To have some validation that we are doing well as far as tracking them and making sure that they deliver what they’ve said they will for these incentives, I think that’s reassuring both for us that the folks at (the Arkansas Economic Development Commission and the state Department of Finance and Administration) are doing their jobs properly, but also, I think should be reassuring for Arkansas taxpayers, that when we do make these choices we are holding the companies to task,” he said.
The study looked at nearly 600 documents and interviewed more than 175 government officials and experts in an effort to determine how states measure tax incentive results.
The study examined whether the evaluation of incentives was included in policy and budget deliberations to ensure that lawmakers are using them; whether incentives are reviewed regularly; whether the economic impact of the incentives is measured; and whether the state looks at whether the incentives are achieving the state’s goals.
Sen. Larry Teague, D-Nashville, chairman of the Senate Committee on Revenue and Taxation, said Monday he was aware of the report. He also noted that on Thursday the House and Senate tax committees are scheduled to meet jointly to begin a new review of tax breaks granted by the state.
Rep. Davy Carter, R-Cabot, the chairman of the House committee who asked for the review, did not immediately return a call seeking comment Monday.
Along with Arkansas, the other states at the top of the list were Arizona, Connecticut, Iowa, Kansas, Louisiana, Minnesota, Missouri, New Jersey, North Carolina, Oregon, Washington and Wisconsin.