Fayetteville HMR sales tax report: April 2013

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

A&P collections reported in March were $228,865, a 5.1 percent increase over the same month in 2012.

Overall 2013 A&P receipts are at $841,091, a 4.7 percent increase over the same time period last year.

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.

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 April report represents March 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