Little Rock's Advertising & Promotion Commission and Convention & Visitors Bureau are offering hotels and restaurants some relief on A&P sales tax remittances, the organizations announced Tuesday.
While they can't waive the tax obligations for lodging and prepared-food businesses, citing debt service requirements for municipal bonds, the organizations said in a news release that they are "very sensitive to the fact that local prepared food and beverage retailers as well as lodging retailers are facing extreme challenges."
The A&P panel levies a 2% tourism tax on all purchases at restaurants, cafeterias and fast food outlets. That levy, commonly called the hamburger tax, is remitted directly to the A&P Commission, which also collects a 2% room tax for hotels and motels.
So the commission and the LRCVB are asking businesses to continue filing their A&P tax returns monthly, even if gross receipts are down significantly or at zero, and to apply for a three-month deferment of taxes or temporary relief from any penalties or interest on taxes owed.
Businesses have access to a Covid-19 Application for Relief from Penalty and Interest (available here) for the taxable periods covering February, March, April and May, 2020, the news release said. The Covid-19 Application for Deferment and Installment Payment Agreement (available here) offers the three-month deferment option.
All applications are online here, LittleRock.com/tax, or businesses can reach Kasey Summerville of LRCVB at Ksummerville@littlerock.com, or by calling (501) 370-3317.