City of Searcy Releases Informal Food & Lodging Tax Revenue Projections

The mayor has passed along these figures that show how much the last A&P tax (which was overwhelmingly rejected by voters at the polls) brought in during its tenure:

August 8, 2012

To: Members of the City Council

From: David Morris

I have asked our City Clerk/Treasurer to furnish me with the amount of the collection of the former advertising and promotion (A&P) tax, that was collected in Searcy in 2009.   As you know, the former A&P tax  was one percent (1%) on prepared food and three percent (3%) on lodging.    The tax was collected for approximately five and a half  (5 ½) months.

The actual collections for the five (5) full months were as follows:

July 2009                     $79,287.48

August 2009               $79,550.03

September 2009      $82,519.80

October 2009            $84,861.82

November 2009       $78,527.80

The average of these five (5) months of full collections is $80,949.39 per month.   Assuming that monthly average continued, the annual revenue generated would have been $971,392.68.


One comment

  1. Donald L. Wheatley

    What Mayor Morris omitted was the fact that the tax was illegal, but was not returned, either by receipted purchases or by a reduction of taxes on motels and prepared foods for the same amount and same time frame the taxes were collected illegally.

    Now, before the ink is hardly dry on the bypass tax, the talk is already started on how to pass an A&P tax, to be effective on the 1st day after the bypass tax supposedly ends.

    I would like to know one thing and that is: WHY DO PUBLIC OFFICIALS THINK THEY KNOW BETTER HOW TO SPEND OUR MONEY THAN WE DO? Their only answer to every problem is more taxation. They say the bulk of the A&P tax will be paid by outsiders. Well, maybe so, but that doesn’t keep the tax from being collected from the people who live here (the insiders, if you will).

    For people who have good incomes, a penny, two pennies, three pennies on the dollar doesn’t mean much, but ask any one on a lilmited income what it means to them, and you will find out their situations are quite different that those with good imcomes or those fortunate enough to own their own business. It just makes eking by even more harder.
    Ownere of the motels and Prepared food businesses don’t worry about paying the tax. All they have to do is collect it.


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