Latest news with #Act769
Yahoo
04-06-2025
- Business
- Yahoo
Northwest Arkansas National Airport files lawsuit against City of Highfill
BENTON COUNTY, Ark. (KNWA/KFTA) — The Northwest Arkansas Regional Airport heard from a Highfill City Council member at its board meeting Tuesday, during an ongoing litigation between the two entities. In 2023, XNA was reported to be considering separating from the City of Highfill. The airport had originally stated in March 2023 that it would not separate unless the change made sense for both the customer experience and the region. Around the same time, Arkansas enacted Act 769 into legislation, which allows airport authorities to make decisions regarding attachment to the city it resides, as long as it's in the best interest of the authority and city. However, if the city has unpaid bonds, the sales tax remains collected and used towards those payments. In October 2023, the City of Highfill filed a lawsuit against XNA, claiming the 2023 law is unconstitutional. A Benton County judge denied the city's attempts at a de-annexation lawsuit in September 2024, ruling in favor of the airport. Tickets now available for 2025 NW Arkansas Championship In October 2024, XNA filed a petition to detach from the City of Highfill under Act 769. According to state law, once a petition is filed, all the sales tax revenue that goes to the municipality must be used to pay off or prepay bonds. In November, XNA's original proposal was rejected by the city, with changes made when it was proposed again in March 2025. Separately, XNA claims that since the petition was filed, the city has used the sales tax revenue for operational needs, leading to an ongoing lawsuit filed in April against city officials. 'While we have filed a lawsuit against the mayor and the city administrative assistant and one other city council member, we're doing that in their official capacity. We're not seeking any money damages from them. We're seeking a court order directing them to follow the law,' Brian Burke, director of compliance for XNA, said. With state lawmakers present, the two parties came to an agreement, but after the board of directors meeting Tuesday morning, it appeared that the two had misinterpreted the verbal agreement. Highfill City Council member Justin Allen said that the city believed they would be receiving $900,000 for municipal needs that did not have to go to bond payments, while Burke claimed that the money's sole purpose was to go towards the debt. Due to the misinterpretation, the board decided to scrap the agreement and start from scratch. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
18-03-2025
- Business
- Yahoo
XNA Airport Board of Directors votes in favor of updated detachment offer in ongoing saga with Highfill
BENTONVILLE, Ark. (KNWA/KFTA) — The Northwest Arkansas National Airport Board of Directors has voted in favor of a new detachment offer in the continuing saga between the airport and the City of Highfill. An XNA spokesperson told KNWA/FOX24 that the terms of the new agreement passed by the airport's Board of Directors on Tuesday morning were the following: Highfill will agree to XNA's Nov. 24, 2024 proposal, as revised, that will, in effect, permit Highfill the use of up to $900,000 in sales tax revenue annually to be spent at the City's discretion. XNA will not pursue a clawback of any sales tax revenue the city received after it filed its petition to detach Each party will bear its own costs and attorneys' fees. XNA filed the detachment petition following a judge's ruling in September 2024, which allowed the process to move forward. Highfill said XNA's interpretation of Act 769, which allows airports to create a procedure for annexation and detachment, threatens the city's financial stability. XNA adds diaper dispensers in bathrooms The city said that while XNA had previously indicated the bill would have minimal impact, the airport's interpretation now requires the immediate impoundment of all city sales tax revenue until Highfill's bonds are paid off. This includes taxes collected from all businesses in the city, even those unrelated to the airport. In November, XNA proposed Highfill would be allowed to retain $746,650 in annual sales tax revenue for operational use for the next 5.5 years, based on forecasts provided by the airport. The remaining sales tax revenue would go toward paying off Highfill's water and sewer bonds. The airport said that Highfill had already received two years of sales tax revenue since the passage of Act 769. Additionally, in a statement released on March 15, XNA claimed that the city has misappropriated nearly $800,000 of sales tax revenue in violation of detachment law since XNA filed its petition to detach. A special city council meeting will be held on Tuesday in Highfill where the offer will be up for a vote. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
14-03-2025
- Business
- Yahoo
Highfill, XNA continue dispute over sales tax and land detachment
HIGHFILL, Ark. (KNWA/KFTA) — Months after a Benton County judge denied Highfill's request for a preliminary injunction to stop the Northwest Arkansas National Airport (XNA) from detaching, the dispute over sales tax and land detachment continues. XNA filed the detachment petition following the judge's ruling in September 2024, which allowed the process to move forward. According to the city of Highfill, XNA's interpretation of a bill passed by the Arkansas Legislature threatens the city's financial stability. The city said that while XNA had previously indicated the bill would have minimal impact, the airport's interpretation now requires the immediate impoundment of all city sales tax revenue until the airport's bonds are paid off. This includes taxes collected from all businesses in the city, even those unrelated to the airport. University of Arkansas among 60 universities under federal investigation over DEI practices 'Unfortunately, no city can survive impoundment of all of its sales tax revenue — and Highfill is no exception,' the statement read. In response, the city of Highfill has proposed several solutions, including: Amending the legislation to allow city sales tax collections to continue until the Highfill's bonds are paid off by April 2036, without impoundment. Limiting the detachment of land to properties acquired by XNA before January 1, 2000. Allowing voters to approve a 3% sales tax on all sales within the airport's footprint, with proceeds directly benefiting the airport. If the tax measure does not pass, a fair distribution of sales tax revenue generated from the airport footprint must be negotiated. However, XNA disputes claims made by Highfill's mayor that the city needs additional time to recover lost tax revenue. XNA's proposal, initially made on November 21, 2024, would allow Highfill to retain $746,650 in annual sales tax revenue for operational use for the next 5.5 years, based on forecasts provided by the airport. The remaining sales tax revenue would go toward paying off Highfill's water and sewer bonds. Arkansas Supreme Court to hear Amber Waterman's appeal in April The airport said that Highfill has already received two years of sales tax revenue since the passage of Act 769. Additionally, XNA claimed that the city has misappropriated nearly $800,000 of sales tax revenue in violation of detachment law since XNA filed its petition to detach. 'XNA has made every effort to reach a fair resolution, including a final attempt last week toreach a settlement. We have a responsibility to ensure that public funds are usedappropriately and in accordance with state law. We have done everything we can to find areasonable solution, and we urge Highfill to come to the table and agree to the deal—onethat benefits both parties.' Northwest Arkansas National Airport (XNA) Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
