July 2, 2003 - Posted at: 10:25 a.m. CDT
WEST MEMPHIS, Ark. -- Restaurant and hotel operators in West Memphis are lobbying to repeal hospitality taxes.
The West Memphis Hospitality Association is circulating two petitions, one to repeal a one-cent tax on meals and hotel rooms passed by the city council last week and the other to repeal a previously established tax.
The West Memphis Advertising and Promotion Commission approved the tax increase May 28, with half the revenue going to fund a building project and the other half to fund operation of the city's bus service.
Proponents say the transit service needs the money to keep the buses running.
Opponents of the tax increase say that bus service has nothing to do with promoting tourism as called for in state law.