Fayetteville HMR sales tax report: June 2012

Fayetteville’s hotel, motel and restaurant (HMR) tax receipts continue to rise this year.

According to the most recent sales tax report, the city has seen record high HMR collections for each month in 2012. A&P receipts reported in June were $222,062, the largest for any month in at least five years.

Total A&P receipts in January were $205,939, a 14.7 percent increase over the same month last year. Collections were up 12.8 percent in February, 18.9 percent in March, 15.9 percent in April, 8.4 percent in May, and 7.9 percent in June.

Overall 2012 collections are at $1,229,110 which is a 12.9 percent increase on the year.

Below is a graph and 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 June report represents May 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