A&P Tax Ordinance 2009-10

WHAT IS THE ‘A & P’?

The Advertising & Tourism Promotion tax (referred to as the ‘A & P’ tax), was established by Searcy City Ordinance No. 2009-10 on May 12, 2009 and levied a

3 percent (3%) tax on the portion of the gross receipts or gross proceeds received from the renting, leasing or otherwise furnishing of hotel, motel, or short-term rental accommodations for sleeping, meeting, or party room facilities, cabins, cottages, bed and breakfasts, camp grounds, for profit but excluding any such rental or lease of any such accommodation for periods of thirty (30) days or more.

1 percent (1%) tax on prepared food and non-alcoholic beverage sold by restaurants, cafes, cafeterias, delicatessens, drive-in restaurants, carry-out restaurants, convenience stores, grocery store restaurants,  and any other, similar, business in Searcy engaged in the selling of prepared food and beverages for on- or off-premises consumption.

Prepared food is any food item that is altered by quantity or content:

• any food item that is cooked on the premises by the establishment for sale to a customer:
• a fountain drink would be subject to the tax, whereby a can of soft drink would not;
• meat or cheese sliced by the establishment for customer sale would be taxed, whereas, prepackaged meat or cheese sold to customer as purchased by the establishment from a vendor would not be taxed;
• a pre-packaged bag of nacho chips/potato chips would not be taxed, however, an on-premises prepared serving of nachos (cheese and nacho chips) would be, etc.

Although this is a city tax, state laws govern the makeup of the Commission and set forth guidelines for any expenditure of the funds collected.  Payment of the tax is made directly to the City of Searcy, City Clerk’s Office, and any expenditure must be approved by the Commissioners.

WHEN DOES COLLECTION BEGIN?

The A & P Tax should be assessed beginning July 1, 2009 and should be remitted to Searcy Advertising & Tourism Promotion Commission by the 30th day of the following month.  If payment is postmarked by the 20th of the month you may apply a 2% discount.  The first remittance will be due by August 30, 2009.  If postmarked after the due date a 5% penalty will be assessed and should be remitted at the time of payment.

WHO ARE THE COMMISSIONERS?

The Commission consists of seven members: two City Council representatives, four from the restaurant, hotel and tourism industry, and one at large position.  The initial terms of the Commissioners are staggered 1, 2, 3 and 4 year terms, with re-appointment terms of four years.  Commissioners must reside within the corporate limits of White County, Arkansas.  Meetings are open to the public and we encourage you to attend and will be held the third Monday of each month at 1:00 p.m. at City Hall.

COMMISSIONERS:
Kent Bruxvoort – chairman (member at large)
Amanda Foust – Recording Secretary (Lodging industry)
Bob White – Treasurer (Food Service industry)
Denise Rintz - (Food Service industry)
Oliver Montano - (Food Service industry)
Dale English – City Council Member
Jim Dixon – City Council Member

WHY WAS THE A & P ESTABLISHED?

The tourism industry is one of Arkansas’s greatest assets.  Goals of the Commission include attracting visitors to the community through the creation and promotion of events, attractions and tourism-related activities and to enhance the city’s coverall quality of life, through the development of community parks and other recreational facilities. 

Involvement with the commission:

• Attend monthly meetings.
• Read all correspondence mailed to your business from our office.  Reporting forms and other general information may be mailed periodically to keep you informed.
• Be a partner in special promotions or events.
• Keep our office updated on any changes that take place within your business such as a change of management/ownership, address, phone or fax numbers, email and website.  Up-to-date information is very important as it is used in brochures, maps, etc.
• Notify our office if you would be willing to hold a position on the Commission as vacancies occur.
• Forward any comment or suggestions to our office personnel.
• Do not hesitate to call upon us, if you have any questions, or if we can be of any assistance to your business.

Ordinance 2009-22 deals with permits, preparation of returns, discounts, penalties for non-payment or violation of the ordinance.