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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