HB1365 - A&P Tax Reform bill - a Citizen's Protection Bill

HB1365 - A&P Tax reform bill - Official title: "Requiring Voter Approval of Certain Tax Levies." The A&P Tax is the only County and City sales tax in Arkansas that does NOT require Voter Approval. HB1365, sponsored by Rep. Johnny Key (R-Mtn Home), would require any city or county that passes an A&P Tax to send it to voters within 120 days (special election). HB1365 doesn't take away any county or city's ability to pass an A&P Tax, it just gives the registered voters in a community the right to vote on this tax which will directly affect them.

HB1365 will not affect any city that already has an A&P Tax, just those that pass one after the bill becomes law. Currently (in simple terms), a county may impose an additional 2% sales tax and cities may impose additional 3% sales tax without the vote of the public on all purchases made:

at restaurants, cafes, cafeterias, delis, drive-in restaurants, carry-out restaurants, concession stands, convenience stores, grocery store restaurants, from the sale of prepared food and beverages for on-premises or off-premises consumption; and

when renting, leasing, or otherwise furnishing of hotel, motel, or short term condominium rental accommodations for sleeping, meeting, or party room facilities.

Local residents are not exempt from paying the A&P tax. If an A&P sales tax is implemented, this tax is added to the sales tax already in existence for the above cited situations. When you eat out or get food from a deli in your city, you would pay the higher tax on your restaurant or deli bill. A&P stands for "advertising and promotion." Revenue from this tax is used primarily to promote the county or city to others outside the community in an effort to grow and enhance the future revenue of businesses.

HB1365 is in the House Revenue & Taxation Committee and has not yet been voted on to advance the bill to the House for a vote. Take action to protect your right to vote before A&P sales tax is implemented in your county and city. Call and write your representatives and your local newspaper demanding that this bill be supported and sent to the House and to the Senate for a vote. Contact your State Representatives & Senators to support this bill.

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