Arkansas Code
Chapter 20 - Quorum or Levying Courts
§ 14-20-112. County gross receipts tax on hotels and restaurants

(a)
(1)
(A)
(i) Any county in which there is located a municipality that levies a gross receipts tax on hotels, motels, restaurants, or similar establishments as authorized in the Advertising and Promotion Commission Act, § 26-75-601 et seq., may levy by ordinance of the county quorum court a like tax at the same rate as the levying municipality or at a lesser rate upon the gross receipts from furnishing of hotel or motel accommodations and upon the gross receipts of restaurants or similar establishments located within the county outside the boundaries of the levying municipality.
(ii) The tax levied under this subdivision (a)(1)(A) shall apply to hotels, motels, restaurants, or similar establishments located within unincorporated areas of the county.

(B) Any county in which there is located a municipality that levies a gross receipts tax on hotels, motels, restaurants, or similar establishments as authorized in § 26-75-701 et seq. may levy by ordinance of the county quorum court a like tax at the same rate as the levying municipality or at a lesser rate upon the furnishing of hotel or motel accommodations, the admission price to tourist attractions as defined in § 26-63-401, the gross receipts of gift shops referred to in § 26-75-701, restaurants, or similar establishments located within any township in the county outside the boundaries of the levying municipality.

(b)
(1) When any county levies the tax authorized in this section, the tax so levied shall be paid by the persons, firms, and corporations liable therefor and shall be collected by the levying county in the same manner and at the same time as the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq.
(2)
(A)
(i) The quorum court levying such tax and the governing body of the municipality levying a like tax may enter into an agreement whereby the tax levied by the county will be collected by the municipality.
(ii) If the tax levied by the county is collected by the municipality, all revenues derived from the tax shall be deposited into the municipality's advertising and promotion fund.

(B) If the tax is collected by the levying county, all revenues derived from the tax, after deducting an amount equal to the cost of collecting it, shall be deposited into the advertising and promotion fund of the municipality located within the county that levies a like tax.
(C) All such funds deposited in the municipality's advertising and promotion fund shall be used for the purposes prescribed in §§ 26-75-601 — 26-75-613.

(c) When any county levies a tax as authorized in this section, the tax shall be reported and remitted in the manner and on forms prescribed by the county or the municipality.