Arkansas Code
Subchapter 2 - Alcoholic Beverages Generally
§ 3-9-223. Private clubs — Permit renewal fees — Taxes

(a)
(1) A permit shall be renewed on or before June 30 of each calendar year for the fiscal year beginning July 1.
(2) Any permit issued between January and July 1 of any year shall be at one-half (½) of the amount of the fee provided in § 3-9-222.

(b)
(1) In addition, there is levied a supplemental tax of ten percent (10%) upon the gross proceeds or gross receipts derived by the private club from the charges to members for the preparation and serving of mixed drinks or for the cooling and serving of beer and wine, drawn from the private stocks of the members as provided in § 3-9-221, for consumption only on the premises where served.
(2) In addition to the tax levied under subdivision (b)(1) of this section, a supplemental tax of four percent (4%) is levied on the gross proceeds or gross receipts derived by the private club from the charges to members for the preparation and serving of mixed drinks drawn from the private stocks of the members as provided in § 3-9-221 for consumption only on the premises where served.

(c)
(1) The supplemental tax shall be reported and paid to the Secretary of the Department of Finance and Administration in the same manner and at the same time as the gross receipts tax under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and shall be in addition to the tax.
(2)
(A) The tax levied under subdivision (b)(2) of this section shall be credited as special revenues to the University of Arkansas Medical Center Fund.
(B)
(i) The funds credited under subdivision (c)(2)(A) of this section shall be used exclusively for making loan repayments for construction projects authorized by Acts 1989 (1st Ex. Sess.), No. 261, until the loan is paid in full.
(ii) After the Chancellor of the University of Arkansas for Medical Sciences certifies in writing to the Chief Fiscal Officer of the State that the loan has been repaid in full, then revenue from the tax collected under subdivision (b)(2) of this section may be used for any purpose authorized by law.

(d) The secretary shall promulgate reasonable rules for the enforcement and collection of the tax levied herein, including a requirement that each permittee maintain records showing all such charges made.
(e) The taxes herein prescribed may be passed on to the members.
(f)
(1) In addition to the fee or supplemental tax as levied herein, any city or incorporated town or any county in which the permitted premises are located, if located outside the limits of a city or incorporated town, may levy an additional permit fee or supplemental tax or both additional permit fee and supplemental tax not to exceed one-half (½) of the amount of the fee or rate provided in this section.
(2) All fees and taxes levied hereunder by any city or county shall be used for city or county general purposes or for city or county economic development purposes.

(g) Holders of a bed and breakfast private club permit are exempt from the supplemental taxes in subsections (b) and (f) of this section.
(h)
(1) The Department of Finance and Administration shall notify the city or county of an audit for the supplemental tax on the sale of alcoholic beverages consumed on the premises if:
(A) The department audits a private club;
(B) The department makes an assessment related to the audit against the private club; and
(C) The private club operates in a city or county that imposes a supplemental tax on the sale of alcoholic beverages consumed on the premises under § 3-9-223(f).

(2) The city or county may use this information to administer its supplemental tax on the sale of alcoholic beverages consumed on the premises.
(3) A city or county provided information under this subsection is subject to all of the confidentiality requirements of § 26-18-303.