Ad panel grants 90-day deferral

The Hot Springs Advertising and Promotion Commission is granting a 90-day payment deferral option to businesses that collect the 3-cent ad tax as a result of the COVID-19 pandemic’s negative economic impact on the hospitality industry.

In a message emailed to permit holders, Steve Arrison, CEO of Visit Hot Springs, noted that the ad tax is a legal obligation like state and local sales taxes, paid by consumers and remitted to the commission by permits holders that include hotels, motels and restaurants.

“The Hot Springs A&P commission cannot waive the obligaHot

tion to collect and remit the tax by lodging and prepared food permit holders,” but will grant a

90-day payment deferral option, he said.

“We know here in Hot Springs particularly, the hospitality industry is being hit especially hard as a result of the

COVID-19 virus,” Arrison said. “We firmly believe that Hot Springs is resilient and will recover from this tremendous strain on our economy. The joint support each of you has shown each other is amazing. We here at the Hot Springs Advertising & Promotion Commission want to do what we can do for each permit holder within our legal limits,” Arrison said in the message.

The following examples of a deferred payment timeline for permit holders were included in the email:

• February tax collected, reporting form is due by March

31, and tax will now be due by June 30.

• March tax collected, reporting form is due by April 30, and tax will now be due by July 31.

• April tax collected, reporting form is due by May 31, and tax will now be due by August 31.

• May tax collected, reporting form is due by June 30, and tax will now be due by September

30.

If businesses do not meet the deferred payment on time, there is a 5% penalty.

“All permit holders are still expected to timely file their A&P tax returns each month regardless of the sales amount (even zero sales),” Arrison said in the email. “In order to be eligible for this relief option, you must file your monthly reports each month for the related taxable period before the original delinquency date without payment.”

Arrison said if businesses file a zero dollar sales month, they will not owe any ad tax.

Businesses that have permanently closed are asked to notify Vicky Ross via email at vross@ hotsprings.org.

Ross said she has received zero reports of permanently closed food preparation businesses so far, but has had five Airbnbs close their lodging as short-term rentals.