Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 6 - LOCAL TAXES (§§ 26-73-101 — 26-82-119) › Chapter 75 - MUNICIPAL SALES AND USE TAXES (§§ 26-75-101 — 26-75-801) › Subchapter 6 - ADVERTISING AND PROMOTION COMMISSION ACT (§§ 26-75-601 — 26-75-619) › Section 26-75-602 - Gross receipts taxes authorized - Voter approval of levy or increase of tax

(a)
(1)
A city of the first class, city of the second class, or incorporated town by ordinance of the governing body thereof may levy a tax not to exceed three percent (3%) upon the gross receipts or gross proceeds identified in subsection (c) of this section.
(2)
(A)
If the governing body enacts an ordinance levying or increasing a tax under this section, the governing body shall submit the question of the levying or increase of the tax to the electors at the earliest date permitted for a special election under §
7-11-205
.
(B)
If the earliest date permitted for a special election under §
7-11-205
is less than seventy-five (75) days from the date the ordinance is enacted under this subsection, the election on the question of the levying or increase of the tax shall be delayed until the next date permitted for a special election under §
7-11-205
.
(3)
The tax shall be levied or increased upon approval of a majority of the qualified electors voting on the question of the levying or increase of the tax at the special election held under §
7-11-205
.
(b)
(1)
A city of the first class in which a city park of one thousand (1,000) acres or more is located may levy an additional tax of one percent (1%) upon the gross receipts or gross proceeds identified in subsection (c) of this section.
(2)
Revenues collected from the additional tax authorized under subdivision (b)(1) of this section shall be used by the city parks and recreation department for the promotion and development of city parks and recreation areas.
(c)
The tax authorized in this section shall be upon any one (1) or more of the following, as specified in the levying ordinance:
(1)
(A)
The gross receipts or gross proceeds from renting, leasing, or furnishing hotel, motel, house, cabin, bed and breakfast, campground, condominium, or other similar rental accommodations for sleeping, meeting, or party room facilities for profit in the city or town.
(B)
Subdivision (c)(1)(A) of this section does not include the rental or lease of accommodations described in subdivision (c)(1)(A) of this section for a period of thirty (30) days or more;
(2)
(A)
The portion of the gross receipts or gross proceeds received from the sale of prepared food and beverages for on-premises or off-premises consumption by restaurants, cafes, cafeterias, delicatessens, drive-in restaurants, carry-out restaurants, concession stands, convenience stores, grocery store-restaurants, or similar businesses as shall be defined in the levying ordinance.
(B)
The tax shall not apply to the gross receipts or gross proceeds of organizations qualified under
26 U.S.C. § 501(c)(3)
, as it existed on January 1, 2023; and
(3)
The admission price to a state park located within the municipal boundary of the city or town.
Amended by Act 2023, No. 190,§ 2, eff. 3/6/2023, app. to ordinances levying or increasing taxes subject to this act that are enacted on or after the effective date of this act.
Amended by Act 2019, No. 560,§ 1, eff. 4/1/2019.
Acts 1965, No. 185, § 1; 1969, No. 123, § 1; 1971, No. 534, § 1; 1977, No. 178, § 1; 1979, No. 926, § 1; 1981, No. 20, § 1; 1981, No. 957, § 1; A.S.A. 1947, §§ 19-4613, 19-4613.1; Acts 1989, No. 626, § 2; 1991, No. 726, § 1; 1993, No. 364, § 1; 1995, No. 300, §§ 1, 2; 1995, No. 931, § 1; 2007, No. 473, § 2; 2009, No. 274, § 1.