Tax & Accounting Blog

Arkansas Cities Vote on Prepared Food Tax

Indirect Tax, ONESOURCE, Sales and Use Tax November 11, 2011

Voters in two cities had the chance to vote on a prepared food and beverage tax November 8th, sometimes referred to as a “hamburger tax,” but more commonly known as the Advertising and Promotion Tax.  In Benton, voters approved an extension to their current 1.5% A&P tax by a large margin, which will remain in effect until the $7.8 million convention center is paid off.  In Fort Smith, however, voters handily rejected a new 1% A&P tax, which was the second time residents had seen this tax.  Earlier in the year this tax was levied, and then soon after repealed due to legal conflicts.