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Advertising & Promotion
479-795-2750 ext. 28
WHAT IS THE A&P?
The Advertising & Promotion Tax, (referred to as the ‘hospitality’ tax), was established by Centerton City Ordinance May 8, 2007 and levied at:
3% is hereby levied on the portion of the gross receipts or gross proceeds received 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 in the city of Centerton, Arkansas, but such accommodations shall not include the rental or lease of such accommodations for periods of thirty (30) days or more. (Ord. No.2007-15, Sec. 1.)
1% tax on prepared food and non-alcoholic beverages sold by restaurants, cafes, cafeterias, delis, drive-in restaurants, carry-out restaurants, mobile food vendors, convenience stores, grocery stores, and all other establishments in Centerton engaged in the selling of prepared food and non-alcoholic beverages for on or off premises consumption.
Prepared food is food items sold that are altered by quantity or content.
Any food item that is cooked on the premises by the establishment for the sale to a customer:
- A fountain drink would be subject to the tax, whereby a can of soft drink would not.
- Meat or cheese sliced by the establishment for customer sale would be taxed, whereas prepackaged meat or cheese sold to customer as purchased by the establishment would not be taxed.
- A pre-packaged bag of nacho/potato chips would not be taxed, however, an on premise prepared serving of nachos would be, etc.
- Although this is a city tax, state laws govern the makeup of the Commission and set forth guidelines for any expenditure of the funds collected. Payment of the tax is made directly to our office, and any expenditure must be approved by the Commissioners.
WHO ARE THE COMMISSIONERS?
The Commission consists of seven commissioners: 2 City Council Representatives, 4 from the restaurant, hotel, & tourism industry, and 1 at large position. The initial term of the Commissioners were staggered with 1, 2, 3, and 4 year terms, with re-appointment terms after 4 years.
WHY WAS THE A&P ESTABLISHED?
Tourism, entertainment, sports, and recreation are among the greatest assets that Northwest Arkansas has. People will travel from near and far to eat, watch, or participate in a ball game, relax, or have a picnic with their family and friends. Centerton must compete for the attention of these people.
Some of the A&P Tax, which you collect, will go toward developing a park system, which will attract people to our community. This includes a sports park, with ball fields, soccer fields, tennis courts, and basketball courts. As well as a splash pad, dog park, walking trail and children’s play areas. Family parks with trails, fishing, picnic areas and more. The funding for these many great attractions are funded in part by the citizens and visitors to our community by frequenting our restaurants, convenience stores, mobile food vendors, or delis.
Another portion of the tax will go toward promoting the City of Centerton, including the businesses, which collect the tax. This will be done through such things as an A&P Commission website, publications directing people to our restaurants, support and promotion of events, which bring people to Centerton.