Originally published by Arkansas State Representative Brit McKenzie (R – Rogers)
Issue 3 is a proposed constitutional amendment that the legislature referred to voters in 2025. I am strongly opposed to it, and I encourage you to vote against it. An August Talk Business & Politics–Hendrix College poll found 37 percent of likely voters in favor, 25 percent opposed, and 38 percent undecided, so the outcome rests with voters who have not yet made up their minds.
Issue 3 would write a permanent power into the Arkansas Constitution allowing cities and counties to create economic development districts. Property inside a district would be exempted from ordinary taxes and charged by the district instead, and the district could issue its own bonds outside constitutional debt limits. The amendment itself creates no district. The rules governing how these districts operate would be written later.
The most detailed version of those rules we have seen is SB647, the sponsor’s implementing bill. It was filed on the last day of the 2025 session and sent to interim study, and its effective date depended on voters approving Issue 3. It is not law, but it is the best written guide we have to what Issue 3 would look like in practice.
The scope matters as well. Arkansas already allows tax increment financing under Amendment 78 for roads, utilities, and public facilities. SB647 goes much further, reaching retail, restaurants, entertainment, and hospitality, with tools that include cash grants, forgivable loans, below-market loans, and abatements lasting up to 30 years. At that point, the question is no longer about infrastructure. It is about whether government should be selecting which private businesses win.
I am pro-growth, and I want to see continued investment in Northwest Arkansas. Prosperity, however, does not come from government-selected deals financed with someone else’s risk. We can pursue growth without moving taxing power away from voters, approving rules we have not seen, or putting public revenue behind private projects. I will be voting against Issue 3, and I hope you will join me.
Rep. Brit McKenzie is serving his second term in the Arkansas House of Representatives. He represents District 7 which includes a portion of Benton County.
For the 95th General Assembly, Rep. McKenzie serves as the Vice-Chair of the House Education Committee. He also serves on the House City, County, and Local Affairs Committee.
