Fayetteville’s hotel, motel and restaurant (HMR) tax receipts began the new year on a positive note.
The city collects a 2 percent tax on hotel/motel stays and prepared food sales. Half of the money goes to the city’s Parks and Recreation Department to pay for parks maintenance, operations and capital improvements. The other 1 percent goes to the Fayetteville Advertising & Promotion Commission.
A&P collections reported in January were $211,138, a 2.5 percent increase over the same month in 2012.
Below is a graph showing 2013 vs. 2012 collections and a table representing A&P revenues from the HMR tax for the past five years in Fayetteville.
Note: The figures discussed in this post reflect the A&P’s half of the HMR tax. The January report represents December sales.
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.
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