ORD NO 20-2016 CITY OF VAN BUREN,ARKANSAS
ORDINANCE NO. -2016
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS, AN ORDINANCE TO BE ENTITLED:
AN ORDINANCE AMENDING ORDINANCE NO. 15-1989
PROVIDING FOR THE INCREASE OF THE LEVEE OF
LOCAL GROSS RECEIPTS TAX FOR HOTELS AND
MOTELS WITHIN THE CITY OF VAN BUREN;
DECLARING AN EMERGENCY; AND FOR OTHER
PURPOSES.
WHEREAS, under Ark. Code Ann. 26-75-602, the City is empowered and authorized to levy a
gross receipts tax of up to 3% 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, Ordinance No. 15-1989 provided for the computation of said "Hospitality Tax" at
the rate of 1% of gross receipts of hotels, motels and restaurants within the City
limits; and
WHEREAS, it is recommended by the Advertising and Promotion Commission of the City of
Van Buren to amend Ordinance No. 15-1989; and
WHEREAS, a state of emergency exists because these fees are needed to be effective January 1,
2017 to provide for the health, safety, and welfare of the citizens of Van Buren and
to preserve the property of the city.
NOW,THEREFORE,BE IT ORDAINED AND ENACTED BY THE CITY COUNCIL OF
THE CITY OF VAN BUREN,ARKANSAS,THAT:
SECTION 1: Ordinance No. 15-1989 is hereby amended to add the following Section:
In addition to the sales and use tax now being levied and collected in the City of
Van Buren,Arkansas pursuant to Ordinances No. 8-1988,No. 9-1988,No. 6-2012,
and No. 8-2012 and the 1% Hospitality tax levied on October 1, 1989 pursuant to
Section 1 of Ordinance No. 15-1989, there is hereby levied effective January 1,
2017 an additional tax of 2% for a total of 3% upon the gross receipts from the
renting, leasing or otherwise furnishing of 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. The tax of 1%
levied effective October 1, 1989 pursuant to Section 1 of Ordinance No. 15-1989
on the gross receipts of restaurants shall include the gross receipts of restaurants,
cafes, cafeterias, delis, drive-in restaurants, carry-out restaurants, concessions
stands, convenience stores, grocery store restaurants, food trucks and similar
businesses engaged in the selling of prepared food and beverages for on or off
premises consumption. Such tax shall not apply to such gross receipts or gross
proceeds of organizations qualified under 26 U.S.C. Section 501(c)(3).
SECTION 2: No other alterations or amendments of Ordinance No. 15-1989 are intended and the
remainder of said Ordinance not heretofore specifically amended shall remain in
full force and effect.
SECTION 3: The Mayor and City Clerk are hereby authorized by the City Council for the City
of Van Buren to execute all documents, contracts, and agreements necessary to
effectuate this Ordinance.
SECTION 4: In for financial computations to begin at the amounts herein, it is further found that
there is a need for this Ordinance to take effect on January 1, 2017, and as such an
emergency is declared to exist and this Ordinance being necessary for the
preservation of the public health, safety, and welfare, shall take full effect on that
date.
SECTION 5: The various provisions and parts of this Ordinance are hereby declared to be
severable, and, if any section or part of a section, or any provision or part of a
provision herein,is declared to be unconstitutional,inappropriate,or invalid by any
court of competent jurisdiction, such holding shall not invalidate or affect the
remainder of this Ordinance and to that extent the provisions hereto are declared to
be severable.
IN WITNESS WHEREOF, the City of Van Buren, Arkansas, by its City Council, did
pass,approve, and adopt, by a vote of (9 for and 0 against,the foregoing Ordinance at its
regular meeting held on the 14th day of November 2016.
110 , 1.1111k
- -
Robert P. - - `r
Mayor
ATTESTED: AP '. Oi A T I FORM:
41 // cjU/n<2<2
�r
Ph•llis Thomas Candice A. Settle
City Clerk/Treasurer City Attorney
ORDINANCE NO. I-f dW
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
110 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
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.
110
MAYOR
ATTESTED.:
CITY CL RK-TR ASURER4' 14 u"1
Main St. I a ,
Van urcnTM
Advertising & Promotion Commission
November 9, 2016
The Honorable Bob Freeman
Mayor of the City of Van Buren
1003 Broadway
Van Buren, AR 72956
Dear Mayor Freeman:
At the November 9, 2016 meeting of the Van Buren Advertising and Promotion
Commission, the Commissioners voted unanimously to recommend to the Van Buren
City Council that Ordinance No. 15-1989 be amended to increase the Hospitality Tax
rate from 1% to 3% on the gross receipts from renting, leasing or otherwise furnishing
of hotel and motel accommodations for profit within the City limits as allowed by Ark.
Code Ann. 26-75-602.
We respectfully request that this be brought before the City Council for consideration.
Sincer- ,
///pe ?"
De bie Folliart
Chairman, Van Buren Advertising and Promotion Commission
813 Main Street • P.O. Box 1518 • Van Buren, Arkansas 72957 • (479) 474.6164