Paragould City Council presented hotel, motel tax ordinance

(Source: KAIT)
(Source: KAIT)
(Source: KAIT)
(Source: KAIT)

PARAGOULD, AR (KAIT) - Two ordinances will go before the Paragould City Council Monday night, including a proposed 3% sales tax.

One ordinance proposes to establish an Advertisement and Promotion Commission, and the other would set forth a 3% A&P sales tax from hotels and motels.

According to Paragould Council Member Jeremy Biggs, the proposed ordinances have been in the works for several months.

"We think we have all the kinks worked out and it's the best ordinance that we can present for the city of Paragould," Biggs said.

Biggs said the city could use the tax dollars from tourists for a variety of things, including promoting the city to future residents, construction, and bettering public parks.

He said the city has missed out on this revenue opportunity for many years.

"We feel like it's revenue that's been left out on the table for many, many years and this is collected from tourists and visitors in the city of Paragould who will be staying in our hotels and motels," Biggs said. "That's how it'll be collected, so we could use that small 3% sales tax for each room for the betterment of our community."

Bed and Breakfast businesses and conference centers are also subject to the 3% tax, according to Biggs.

"We've spoke with hotel managers and they say they work well with it," Biggs said. "We haven't had one public comment."

Biggs estimates the tax dollars could bring between $80,000 and $100,000 in revenue.

The proposed A&P commission ordinance states it should be composed of seven members.

Paragould council members will likely have its first two readings on both ordinances Monday night.

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