LOWELL -- City and Benton County officials this week approved waiving sales and use taxes for construction costs of an expansion of J.B. Hunt headquarters.
The tax incentive is part of the Arkansas Tax Back Program created with the Consolidated Incentive Act of 2003, said Steve Cox, Rogers-Lowell Area Chamber of Commerce vice president of community development, on Friday. The chamber helps businesses with the program, he said.
Fast Facts
J.B. Hunt employs 14,500 people in 400 facilities. It’s one of the largest transportation logistics companies in North America. It was incorporated in 1961 and became a publicly held in 1983.
Source: jbhunt.com
Cox said a company planning to spend more than $100,000 on expansion and generate more than $125,000 in new payroll automatically qualifies for a reduction in state taxes through the program. The state will reduce the company's sales and use tax to 1 percent for construction costs, he said.
The state encourages cities and counties to also eliminate their sales and use taxes, Cox said. Lowell's City Council approved eliminating its tax for the J.B. Hunt project Tuesday. Benton County approved a resolution Thursday.
The transportation company received approval to build a seven-story tower during a Lowell Planning Commission meeting in May. The tower will be at the company's business park at 615 J.B. Hunt Corporate Drive.
Brad Jester, J.B. Hunt facilities manager, previously said preliminary plans are for a building of 150,000 square feet. The project is to be finished by early 2017.
The building will accommodate 1,250 employees, J.B. Hunt officials said previously. Company officials didn't respond Friday to an email or phone call.
Arkansas Department of Finance and Administration documents for the Tax Back Program state that participants can receive a refund for "material used in the construction of a building or any addition, modernization or improvement to a new or expanding business; and purchases of machinery or equipment associated with the building or project."
The refund cannot be used for operating expenditures, replacing previously purchased items, motor vehicles or routine repair and maintenance, according to the document. Participants also must complete the project within four years of entering the program.
Cox said the chamber has helped four other companies with the tax back process since January. The businesses are EcoVet Furniture, Mundo-Tech, Razorback Liquidation Group and Ozark Mountain Poultry.
The four businesses are expected to spend more than $1 million in capital investment and add 200 jobs to the area in two years, Cox said. Information about the J.B. Hunt rebate is not yet available because details are being finalized, he said.
Companies have to apply for the program even if they automatically qualify, Cox said.
"People sometimes don't realize that these are out there," Cox said. "They might have qualified but did the expansion and didn't realize it until after it was completed."
NW News on 07/25/2015