HomeMy WebLinkAbout2005-06-01 ORDINANCE NO.
AN ORDINANCE ESTABLISHING A TWO PERCENT(20/.)TAX UPON THE GROSS PROCEEDS
OF HOTEL AND MOTEL ACCOMMODATIONS: AND A ONE PERCENT(1%)TAX UPON THE
GROSS PROCEEDS OF RESTAURANTS, CAFES, AND CAFETERIAS AND SIMILAR BUSINESS
AS DEFINED, WITHIN THE CITY OF BATESVILLE,ARKANSAS,FOR ADVERTISING AND
PROMOTION OF THE CITY AND ITS ENVIRONS, AND FOR OTHER PURPOSES.
WHEREAS, the various states spend in excess of two hundred million dollars per year to promote and
develop tourism and that this amount increases substantially each year;and
WHEREAS, as part of the major economic development program being undertaken in Arkansas it is
imperative that the State and its counties and municipalities have every opportunity to participate in the
available tourism dollars;and
WHEREAS, the hotel and restaurant tax authorized by Act 185 of 1965,as amended,has been levied
by many municipalities in Arkansas and in some places has been pledged to revenue bonds,as authorized
by Act No. 977 of 1975,as amended,and
WHEREAS,the levy of such tax has been essential to the various tourism programs and projects of
those municipalities,and such projects have and will continue to result in substantial inflow of tourism
dollars,and the resulting economic benefits to residents of those municipalities and to the State as a whole;
and
WHEREAS, Act 626 of 1989,and Act 650 of 1989 have been adopted to permit the levy of an
additional gross receipts tax upon gross receipts of hotels,motels and restaurants for the development of
tourism and recreation projects;
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
BATESVILLE, ARKANSAS:
SECTION 1. There is hereby levied a tax of two percent(21/o)upon the gross receipts or gross
proceeds from the renting,leasing or otherwise furnishing of hotel,motel,or short term condominium
rental accommodations for sleeping,meeting or party room facilities for profit within the city, not to
include the rental or lease of such accommodations for periods of thirty days or more,and one percent(10/6)
of the gross receipts or gross proceeds received by restaurants,cafes, cafeterias, delicatessens,drive-in
restaurants,carryout restaurants, concession stands,convenience stores,and grocery store restaurants,
which tax shall not apply to gross receipts or gross proceeds of organizations qualified under
LSection 501 (c)(3)of the Federal Internal Revenue Code.
SECTION 2. That the tax herein levied shall be paid by the persons,firms,and corporations liable
therefore, and shall be collected by a designated agent of the Commission in the same manner,and at the
same time as the tax levied by the Arkansas Gross Receipts Act, ACA 26-52-101 et seq.
SECTION 3. The tax shall be collected from the purchaser or user of food or accommodations by the
person,firm,corporation,association,or other entity of whatever nature selling such food or furnishing
such accommodations,and said collector shall remit to the city on the 20`h day of each month all collections
of the tax for the preceding month,accompanied by reports on forms to be prescribed by the Commission.
The rules,regulations,forms of notice,assessment procedures,and the enforcement and collection of the
tax under the Arkansas Gross Receipts Act shall, so far as practicable,be applicable with respect to the
enforcement and collection of the tax levied pursuant to the authority of Act 626 of 1989. However,the
administration and enforcement,and all actions,shall be by, and in the name of,the Commission through
the proper commission officials authorized by ACA 26-75-603.
® SECTION 4. The City of Batesville Advertising and Promotion Commission be,and the same is hereby
created,to be composed of seven members as follows:
(a) Four(4)members of whom shall be owners or managers of businesses in the tourism industry, at
least three(3)of whom shall be owners or managers of hotels,motels, or restaurants,and all of
whom shall be appointed by the governing body of the City for staggered terms of four(4)years,as
provided by Ark. Code Ann. 26-75-605(b);and
(b) Two(2)members of the Commission shall be members of the governing body of the city and
selected by the governing body;and
(c) One(1)member shall be from the public at large and shall be nominated by the Mayor and
approved by the Council of the city for a term of four(4)years.
SECTION 5. All local taxes levied pursuant to this ordinance shall be used in compliance with the laws
Of the State of Arkansas.
SECTION 6. The Commission is the body that determines the use of the City Advertising
Promotion Fund,as provided by law.
SECTION 7. Any person,firm or corporation who fails to pay the gross receipts or gross proceeds
tax under the provision of this Ordinance shall be guilty of a class C misdemeanor and shall be fined in
an amount not to exceed a total assessment of thirty-five percent(35%)of the unpaid tax. ACA 26-75-
603.
SECTION 8. The Advertising and Promotion Fund for the City of Batesville is hereby created.
SECTION 9. Collection of this tax shall commence on August 1,2005.
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City Clerk