ORD NO 15-1989 ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE LEVY OF A LOCAL GROSS RECEIPTS
TAX AT THE RATE OF ONE PERCENT (1 ON THE GROSS RECEIPTS OF
HOTELS, MOTELS AND RESTAURANTS WITHIN THE CITY OF VAN BUREN,
ARKANSAS; CREATING AN ADVERTISING AND PROMOTION COMMISSION;
PROVIDING FOR A SPECIAL ELECTION ON SAID TAX; PROVIDING AN
EMERGENCY CLAUSE AND FOR OTHER PURPOSES.
WHEREAS, there is a great need to promote and develop
tourism and increase the inflow of tourism dollars and the
resulting economic benefits to the citizens of Van Buren; and
WHEREAS, the City is authorized under Arkansas Code
Annotated Sections 14 -55 -301 and Sections 26 -75 -601 through
26 -75 -613 as amended, to levy a gross receipts tax of at least
one percent (1 upon the gross receipts of hotels, motels and
restaurants within the City limits for the promotion and
development of tourism within the City; and
WHEREAS, under Arkansas Code Annotated, Section 26 -75 -605,
as amended, the City is authorized to create an Advertising and
Promotion Commission to collect, determine the use of, and
distribute and spend the tax funds collected; and
WHEREAS, the City Council has determined that the levy of
said "Hospitality Tax" should be submitted to a vote of the
citizens of Van Buren prior to its imposition and collection.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF VAN BUREN, ARKANSAS:
SECTION 1: In addition to the tax of one percent (1 now
being levied and collected in the City of Van Buren, Arkansas,
pursuant to authority of Act 25 of 1st Extraordinary Session of
1981, as amended and Ordinances No. 8 -1988 and 9 -1988 of the City
of Van Buren, Arkansas, there is hereby levied effective October
1, 1989, a tax of one percent (1 upon the gross receipts from
the renting, leasing or otherwise furnishing of hotel and motel
accomodations for profit in the City and upon the gross receipts
of restaurants, cafes, cafeterias, delis, drive -in restaurants,
carry -out restaurants, and all other establishments engaged in
the selling of prepared food and beverages for on or off premises
consumption, but such tax shall not apply to such gross receipts
or gross proceeds of fraternal organizations qualified under
Section 501 (c) (3) of the Federal Internal Revenue Code.
SECTTION 2: The tax shall be collected from the purchaser
or user of the food or accommodations by the person, firm,
corporation, association, trust or estate (or other entity of
whatever) selling such food or furnishing such accomodations and
the tax so levied shall be paid by the persons, firms and
corporations liable therefor and shall be collected by the
Advertising and Promotion Commission of the City or 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 and as authorized by Act 626 of 1989.
SECTION 3: There is hereby created the City Advertising
and Promotion Fund, to which fund there shall be credited all
collections of the Hospitality Tax.
SECTION 4: The City Advertising and Promotion Fund shall
be used, in the manner determined by the City Advertising and
Promotion Commission for advertising and promoting the City of
Van Buren and its environs, for the construction, reconstruction,
repair, maintenance, improvement, equipping and operation of
public recreation facilities in the City, and for all other
purposes authorized by Arkansas Code Annotated, Section 26 -75 -601
as amended by Act 626 and Act 650 of 1989, including the pledge
of revenues therein to the payment of bonds issued under state
law.
SECTION 5: There is hereby created the City Advertising
and Promotion Commission. The Commission shall have all the
powers and duties as prescribed by law. The Commission shall
be composed of seven (7) members as follows: Four (4) members
F
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 City Council for staggered terms of four (4)
years; two (2) members shall be members of the City Council and
shall be selected by the City Council; and one (1) member shall
be selected from the public at large and shall be nominated by
the Mayor and approved by the City Council for a term of 4 years.
The staggered terms of the tourism industry representatives shall
be determined by the process authorized by Act 626 of 1989.
SECTION 6: (a) Said question of the levy of a "Hospitality
Tax" as provided in Section 1 through 4 herein and the question
of the creation of an Advertising and Promotion Commission as
provided in Section 5 herein, shall be submitted to a vote of
the citizens of Van Buren, Arkansas, by special election to be
held on August 15, 1989. (b) The cost and expense of such
special election shall not be borne by the City, but shall be
paid for from private funds.
SECTION 7: The City Council of the City of Van Buren,
Arkansas, has determined that there is a great need for the
advertisement and promotion of tourism within the City of Van
Buren and a need for the influx of additional tourism dollars
which would economically benefit the citizens of Van Buren, and
this Ordinance being necessary for the preservation of the
health, safety and welfare of the citizens of Van Buren,
Arkansas, an emergency is declared to exist and this Ordinance
shall become law immediately upon its passage, approval and
publication.
PASSED AND APPROVED this 19th day of June, 1989.
G Y
MAYOR
_ATTESTED.:
CLERK TREASURER