Tax & Accounting Blog

Two New Bills Proposed in Arkansas Could Affect A&P Tax

Indirect Tax, Sales and Use Tax March 15, 2011

SB 180 and SB 212 have been introduced to the Arkansas Senate. SB 180 would require an election in order to implement new A&P taxes. Currently, cities and towns can simply impose A&P taxes via ordinance. SB 212 would require a renewal vote for hospitality taxes every 4 years.

Opponents of the bills say they would make it nearly impossible for Arkansas to be competitive with other states for tourists and conventions, especially for events which are planned years in advance.

Currently, the revenue generated from A&P taxes (which can be imposed on lodging and prepared food) go to support the promotion of tourism in Arkansas.