§ 26-75-701 - Tax authorized. - Arkansas Statutes

26-75-701. Tax authorized.

(a) Any city of the first class having a population of less than five thousand (5,000) inhabitants, a portion of which has been designated as a historic district and is included on the National Register of Historic Places, by ordinance of its governing body, may levy a tax not to exceed two percent (2%) upon the gross receipts or gross proceeds from any one (1) or more of the following:

(1) The renting, leasing, or otherwise furnishing of lodging for profit in the city;

(2) Restaurants, cafes, cafeterias, or other business establishments, as defined in the levying ordinance, engaged in the business of selling prepared food for consumption on the premises in the city;

(3) Sales by retail businesses, a majority of whose gross receipts or gross proceeds are derived from the sale of items available for sale to tourists, as defined in the levying ordinance; and

(4) Admission price to tourist attractions, as defined in 26-63-401.

(b) (1) Any tourist attraction with total gross receipts of seven hundred fifty thousand dollars ($750,000) or more that has a portion of the real property on which the attraction is located that abuts and adjoins a city may petition the adjoining city to be included without annexation in the levy and collection of the tax set forth in subsection (a) of this section.

(2) Upon receipt of the petition, the governing body may pass an ordinance effective on or after January 1, 2000, levying the tax set forth in this section on the petitioning area at the same rate as that of the adjoining city.

(3) The adjoining city shall have no authority over the petitioning attraction except as provided in this section.

(4) As used in this section, "tourist attraction" means:

(A) A cultural or historical site;

(B) A recreational or entertainment facility;

(C) An area of natural phenomena or scenic beauty;

(D) A theme park;

(E) An amusement or entertainment park;

(F) An indoor or outdoor play or music show;

(G) A botanical garden; or

(H) A cultural or educational center.

(c) (1) As used in this subchapter, "lodging" means furnishing for profit temporary accommodations based on a rental, lease, or other agreement.

(2) "Lodging" includes the furnishing for profit of:

(A) A hotel room, motel room, or other similar room that provides accommodations for a traveler;

(B) A condominium rental agreement; and

(C) A meeting or party room facility.

(3) "Lodging" does not include the rental or lease of an accommodation for thirty (30) consecutive days or more.