Fayetteville’s hotel, motel and restaurant (HMR) tax receipts saw another increase this month, but the record-setting trend that began in December 2011 has stalled.
A&P receipts reported in November were $210,335. That figure represents a 3.3 percent increase over the same month last year, but is $3,159 less than November 2010.
Overall 2012 collections are at $2,313,490.
Below is a graph showing 2012 vs. 2011 numbers and a table representing HMR tax collections for the past five years in Fayetteville.
Note: The figures discussed in this post reflect the A&P Commission’s half of the 2 percent tax on hotel and motel stays and food purchases in restaurants. The November report represents October sales.
A&P Funds
Legislation created the Advertising and Promotion Commission in 1977 with the passage of the Hotel, Motel, Restaurant (HMR) tax in Fayetteville. The 2 percent tax is split equally between the city’s Parks and Recreation Department and the A&P Commission. The parks money is used for parks maintenance, operations and for capital improvements. The self-reported numbers do not include retail or liquor sales.
» See recent collection totals
By state legislation, all HMR funds shall be used:
1. for advertising and promoting the city and its environs
2. for the construction, reconstruction, equipment, improvement, maintenance, repair, and operation of a convention center
3. for the operation of tourist promotion facilities in the city
4. for personnel and agencies necessary to conduct the business of the A & P commission
HMR funds can also be used for:
1. for funding the arts
2. for operation of tourist-oriented facilities
3. for construction, reconstruction, repair, maintenance, improvement, equipping and operation of public recreation facilities and for the payment of bonds.
Taxes shall not be used for:
1. general capital improvements within the city
2. costs associated with general operation of the city
3. general subsidy of any civic group or chamber of commerce
Source: Arkansas Code / § 26-75-606 – Use of funds collected
