City gets tougher on tourism taxes
A new legal procedure for collecting delinquent hotel and restaurant taxes is on the books in Texarkana, Ark.
During a regular meeting Monday at City Hall, the city Board of Directors voted five to one to approve an ordinance that gives officials recourse when business owners do not pay the 3 percent hotel tax or 2 percent restaurant tax collected and administered by the city Advertising and Promotion Commission. Ward 4 Director Travis Odom was absent, and Ward 2 Director Laney Harris voted against the ordinance.
Ward 1 Director Linda Teeters, a member of the commission, sponsored the measure. The commission collects and administers a 3 percent hotel tax and a 2 percent restaurant tax from Arkansas-side businesses. The commission may use the revenues for only one purpose, to support the Arkansas-side tourism and hospitality industries.
All affected businesses will be informed in writing of the new rules, Finance Director TyRhonda Henderson said.
Ward 3 Director Tim Johnson spoke to make clear that the taxes in question are not city taxes. The A&P Commission contracts with the city Finance Department to collect and disburse the hotel and restaurant taxes, as well as to keep the commission’s books, but the commission is a taxing entity separate from city government.
According to the new collection process, a Notice of Proposed Assessment will be served on any taxpayer whose tax is not paid by the first day of the month after the due date.
The taxpayer will have 30 days after receipt of the notice to request a hearing. The hearing will be conducted by the A&P Commission, and the commission will determine whether to sustain the proposed assessment, modify the proposed assessment and/or issue a final assessment. The taxpayer will have 30 days from a final assessment to appeal to the Miller County Circuit Court.
If the taxpayer fails to reach a remedy with the commission or the Circuit Court, the commission will file a Certificate of Indebtedness with the circuit clerk. At that time, the commission may seek any lawful measures to collect the debt.
In other business, the board also approved a contract to replace a bridge on Rocky Creek Road for more than $67,500.
Made mostly of wood, the bridge spans Rocky Creek and provides the only road access to seven homes. It is in poor condition and must be replaced as soon as possible, according to city staff.
Hart Construction of Hooks, Texas, submitted the winning bid for the job. Public Works Director Tyler Richards said he expects the work to begin in about six weeks.
Crews will replace the bridge with three concrete box culverts topped with pavement. During construction, a temporary bypass will keep the road open.
Funding for the bridge was not specified in this year’s city budget. It will come from the Public Works Department’s drainage improvement fund.
The board also heard a budget variance report from Finance Director Ty Rhonda Henderson. The report shows how actual revenues and expenditures compare with budget estimates.
Through June, the city brought in more than $9.1 million, 48 percent of its expected total revenues for 2018, the report states. The city spent more than $8.3 million, 43 percent of its expected total expenditures for the year.
The board’s next meeting is scheduled for Oct. 1.